Apple's latest acquisition to further its VR push should enhance the 'Apple effect' (AAPL)

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June 28, 2017 3:56 PM

Apple has likely acquired SensoMotoric, a German computer vision company best known for its eye-tracking glasses and systems

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Apple has likely acquired SensoMotoric, a German computer vision company best known for its eye-tracking glasses and systems, according to Business Insider and first reported on by MacRumors.

SensoMotoric’s portfolio, which includes hardware and software for use in fields like virtual and augmented reality (VR/AR), in-car systems, and clinical research, mesh well with Apple’s aspirations in each of these fields.

SensoMotoric could help fuel Apple’s AR and VR efforts ahead of the rest of the industry. Here’s how:

Apple CEO Tim Cook’s bullish stance on AR makes it the most likely target for SensoMotoric’s tech, at least initially. Cook has stated on numerous occasions that he sees AR as an idea “as big as the iPhone.” The company also recently unveiled ARKit, an AR developer platform for iOS that utilizes the iPhone camera to project 3D-rendered images and videos onto a user’s environment. It’s not hard to imagine how this technology, alongside eye-tracking tech, could be integrated into an AR-enabled wearable.

At the same time, should Apple enter the VR market, it could have a massive impact on consumer adoption, in part due to the "Apple effect." The Apple effect is the noticeable uptick in device and tech adoption whenever Apple launches a new iteration of existing technology — such as the Apple Watch in the smartwatch market. And although VR device adoption has been relatively slow to begin with, Apple’s influence could be the catalyst that tips consumer adoption. Shipments of VR head-mounted displays (HMDs) are already set to surpass 12 million in 2017. The further growth of platforms and consumer adoption will drive VR HMD shipments to 55 million in 2022, at a compound annual growth rate (CAGR) of 36%, according to BI Intelligence.

Jessica Smith, research analyst for BI Intelligence, has compiled a detailed report on virtual reality that:

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