For years, tech companies have unsuccessfully tried to make headsets the next big thing. Ever since the launch of Google Glass, the concept of augmented reality and virtual reality was to have been just around the corner, but multiple attempts, including Meta's series of Quest devices, have failed to capture the mainstream.
Apple's (AAPL 1.27%) Vision Pro, which the tech giant launched at its Worldwide Developers Conference earlier this month, seems like the best attempt yet to convert the masses to headset computing. Unlike previous iterations such as the Meta Quest, the Vision Pro headset can be transparent, allowing users to make eye contact with those around them. It also seems better designed for augmented reality, meaning it enhances existing reality with on-screen features.
However, the question that has dogged past headsets remains a challenge for Apple. How will consumers use the device, and will they be convinced that its value is worth the $3,500 price tag? Here's one possibility.
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Key Data Points
Apple referred to the new device as "magical" several times in the launch presentation. The bulk of the introduction focused on applications for work and entertainment, such as FaceTime, looking at photos and videos, gaming, and video entertainment, like movies.
Now that the Vision Pro has been unveiled, the next challenge for Apple is to stuff it with content and applications that will make it a must-use device. In order to do that, it will rely on developers, much in the way it has with the iPhone. It even included Walt Disney CEO Bob Iger in the launch, who promised that Disney+ would be included on the Vision Pro from day one.
Apple teased the value of sports several times in its presentation, both in gaming and watching live. The tech giant has also been rumored to be preparing a bid for rights to air NBA games when they come up in 2025.
Image source: Apple.
Why the NBA would be a great fit for Apple
Apple is among the expected bidders for NBA rights, and it's easy to see why. With its launch of Apple TV+ in 2019, the iPhone maker made it clear that it saw value in adding a streaming service to its portfolio.
The company has also experimented with sports, adding free major league baseball games to its service, among other offerings. Live sports have continued to be an attractive draw to both viewers and advertisers at a time when streaming content, like TV shows and movies, has exploded.
Acquiring rights to air NBA games could be the blockbuster piece of content that Apple needs to jump-start sales of the Vision Pro. The company could reimagine the sports-watching experience with its spatial computing device, potentially giving viewers the ability to see unique camera angles, get instant updates on stats and players, and even watch the game with a friend on FaceTime.
The NBA would also make an attractive partner for Apple. Both are massive global brands. Apple now has an installed base of more than 2 billion devices, while the NBA has an estimated 1.5 billion-2 billion fans around the world.
Basketball is the world's most popular sport after soccer, but unlike soccer, the NBA has no real competition from other basketball leagues. The NBA has become global as both its fan base and many of its top players, including stars Nikola Jokic, Joel Embiid, and Giannis Antetokounmpo, come from outside the U.S. This global reach makes the NBA a great fit for Apple, and a deal could give a boost to both the Vision Pro and Apple TV+.
The iPhone maker also has more money to throw at the league than any other potential bidder with approximately $165 billion in cash and investments on its balance sheet and annual net profits that now hover around $100 billion. Apple's relationship with Disney, which owns ESPN, could also provide an outlet for it to host NBA games on the new spatial computing device if it's unable to secure its own rights to the league.
Now, with the launch of the Vision Pro, Apple has an added incentive to obtain the broadcast rights. Doing so could help it sell devices, not just subscriptions. Apple doesn't need the NBA for the Vision Pro to be a success, but it's the kind of move that could help attract attention and build demand for the product. Don't be surprised if Apple makes a big play for the NBA as 2025 comes around.
