Hello everyone. Welcome to a new week.

The news flow related to AR/VR headsets is picking up. Apple is widely expected to unveil its entry into the space in just two weeks at WWDC. My assumption continues to be that Apple’s headset will be unveiled as a “one more thing” at the end of an already-packed WWDC presentation (pre-recorded). The unveiling will likely kick off a wave of stories, tidbits, and related topics in the subsequent months. In today’s update, we kick things off with Neil’s thoughts on Meta reportedly looking to partner with Magic Leap for AR IP and contract manufacturing. The discussion then turns to Meta’s positioning in AR/VR with Apple about to enter the space. We conclude with chatter regarding the bill of materials (BOM) for Apple’s Reality headset.

Let’s jump into today’s update.

Meta Looking at Magic Leap as AR Supplier

Over at the Financial Times, here are Hannah Murphy and Patrick McGee:

“Facebook’s parent company is in talks to create a multiyear agreement with augmented reality start-up Magic Leap, as the social media giant continues to pour billions of dollars into its ambition to create an avatar-filled online world called the metaverse.

According to people familiar with early discussions, Meta is exploring ways in which Magic Leap could provide both intellectual property licensing and contract manufacturing in North America to help it build mainstream AR products.

Magic Leap produces custom components, including high-tech lenses and associated software, which are key technologies that may be required to build a metaverse. However, people with knowledge of the talks said the partnership is not expected to yield a specific joint Meta-Magic Leap headset

Two former employees said Magic Leap’s ‘biggest asset’ is the sophistication of its ‘waveguides’ — technology that allows thin glass in front of the user’s eyes to conjure up realistic images at different depths.”

Interesting timing for this news to come out just two weeks ahead of Apple’s headset unveiling. Up to now, Meta has garnered quite a bit of mindshare in the AR/VR space. That is going to change once Apple officially moves into the space. Since we are likely looking at a multi-month window between product unveiling and release, Meta would be right to be concerned about Apple freezing large swaths of the AR/VR market.

An Above Avalon membership is required to continue reading this update. Members can read the full update here . An audio version of this update is available to members who have the podcast add-on attached to their membership. More information about the podcast add-on is found here.

(Members: Daily Updates are always accessible by logging into Slack. If you haven’t logged into Slack before, fill out this form to receive an invite.)

Above Avalon Membership

Subscribe $20/month

Subscribe $200/year

Payment is processed and secured by Stripe. Apple Pay and other mobile payment options are accepted. Special Inside Orchard bundle pricing is available for Above Avalon members.

More information about Above Avalon membership, including the full list of benefits and privileges, is available here.