Apple Acquires AR Startup Mira 1 Day After Vision Pro Headset Announced

Apple has made a significant move in the augmented reality (AR) space with its acquisition of AR Startup Mira, a Los Angeles-based AR startup known for its hands-free headsets. The news broke just one day after Apple unveiled its latest product, the Vision Pro, a highly anticipated mixed-reality headset.

While the financial details of the acquisition remain undisclosed, Mira had previously secured approximately $17 million in funding. Apple confirmed the acquisition, further solidifying its commitment to advancing AR technology.

Asked about the purpose of the acquisition, Apple provided its customary response when acquiring a company saying:

“Apple buys smaller technology companies from time to time, and we generally do not discuss our purpose or plans.”

AR Startup Mira’s Expertise in Endustrial Applications

Mira’s expertise lies in developing purpose-built AR headsets designed for industrial applications. Their headsets have found application in a myriad of industries such as chemical, steel, and food manufacturing, as well as mining services and defense.

One notable implementation is their collaboration with Universal Studios, where Mira’s headsets enhance the Mario Kart ride experience at Nintendo World theme parks in Japan and Los Angeles’ Universal Studios. By displaying virtual characters and items from the game, Mira’s headsets augment the ride as users progress through it.

The acquisition has, however, raised questions about Mira’s existing military contracts and whether Apple intends to continue them. Mira’s involvement with the US military includes a small agreement with the US Air Force and a $702,351 contract with the Navy.

The Air Force contract specifically pertains to the use of Mira’s Prism Pro headset by military pilots at Travis Air Force Base, providing heads-up equipment instructions.

However, given Apple’s typical approach of not discussing its purpose or plans following an acquisition, it seems unlikely that these military contracts will be carried forward.

Apple’s acquisition of Mira has resulted in the incorporation of at least 11 Mira employees into Apple’s workforce. The report cited a post the CEO of Mira, Ben Taft shared on his private Instagram account, revealing photos of employee badges.

In the caption, Taft expressed his excitement for Mira’s next chapter at Apple, marking the culmination of a seven-year journey from a dorm room startup to an acquisition by one of the world’s largest tech companies.

The Vision Pro: Apple’s Cutting-Edge Mixed Reality Headset

Apple’s recent launch of the Vision Pro mixed reality headset highlights the company’s commitment to advancing spatial computing and augmented reality. With a price tag of $3,499, the Vision Pro delivers a distinctive mix of VR and AR features, allowing users to enjoy immersive experiences and cutting-edge spatial computing options.

The headset’s design and functionality embody Apple’s commitment to seamless integration, sleek aesthetics, and user-friendly interfaces.

Apple’s acquisition of Mira exemplifies its ongoing investment in smaller technology companies that offer unique capabilities and innovative solutions.

While Apple refrains from divulging into the specific plans it has for Mira, its track record suggests that AR startup’s technology and expertise will be harnessed to enhance Apple’s AR offerings.

Perhaps it will make use of Mira’s lightweight design features in upcoming AR devices meant for the general public and not just tech enthusiasts.

Apple’s Acquisition of Mira and Projected AR Market Growth Signal Lucrative Opportunities

As per the latest information from Statista, the revenue of the augmented reality (AR) market is expected to hit a significant US $31.12 billion in 2023. Furthermore, the industry is likely to see steady growth with a yearly growth rate (CAGR) of 13.72% from 2023 to 2027, ultimately reaching a market size of about US$52.05 billion by 2027.

The projected revenue and a steady annual growth rate present a lucrative opportunity for companies operating in the AR space, including Apple.

Among the various segments, AR Software emerges as the largest market with a volume estimated at US$11.58 billion in 2023. The United States leads in revenue generation, with a projected market volume of US$8,568.00 million in the same year.

Since Apple is a prominent player in the US tech market, the projected market volume presents an opportunity for the Cupertino, California-based tech company to capture a significant portion of the revenue generated in its home market.

Looking at the number of users, the AR and VR market is predicted to encompass around 2,593.00 million users by 2027, indicating a user penetration rate of 28.8% in 2023 which is anticipated to grow to 32.6% by 2027. As for the average revenue per user (ARPU), it is estimated to be approximately US$14.08.

An increasing number of AR users and a growing user penetration rate indicate a growing demand for AR experiences. Apple’s integration of AR technology across its product ecosystem, including the Vision Pro mixed reality headset, positions the company in a better place to cater to this expanding user base.

By providing innovative and seamless AR experiences, Apple can potentially capture a larger share of the AR market and generate substantial revenue per user.

The future of AR appears promising, with the technology poised to revolutionize various industries and transform the way people interact with digital content. By strategically acquiring companies like Mira, Apple continues to position itself at the front.

It’s important to note that the statistics mentioned here only account for B2C revenues and do not cover the B2B segment. However, Apple’s strong brand recognition, ecosystem integration, and history of successful product launches position the company favorably to leverage the projected growth in the AR market.

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