Technologies

Apple’s Mixed Reality Headset: What to Expect From WWDC’s Big Reveal

Long-awaited and still mysterious, Apple’s VR headset could be the spark for a whole new wave of hardware and software.

Apple’s next big product looks like it’ll cost $3,000, rest on your face and need to be tethered to a battery pack. Whatever this expected VR headset ends up being, it isn’t immediately clear what it’ll do or who it’s for. The Reality Pro headset, as it’s expected to be called when it’s likely unveiled at Apple’s WWDC developer conference on June 5, is Apple’s biggest new product in nearly a decade. It’s also totally different than anything Apple has ever made before.

VR headsets have been a standard consumer tech thing for years, and your family, or families you know, may already have one lying in a corner. They’re used for games, fitness, creative collaboration, even theater. Still, VR and AR have been outlier technologies, not deeply connected enough to the phones, tablets and laptops most of us use every day.

Apple could change that. And of course, don’t expect the word “metaverse” to be uttered even once. The metaverse became Meta’s buzzword to envision its future of AR and VR. Apple will have its own parallel, possibly unique, pitch.

A connection to everything?

I pair my Quest 2, from Meta, to my phone, and it gets my texts and notifications. I connect it to my Mac to cast extra monitors around my desk using an app called Immersed. But VR and AR don’t often feel deeply intertwined with the devices I use. They aren’t seamless in the way my watch feels when used with an iPhone, or AirPods feel when used with an iPad or Mac.

Apple needs this headset to bridge all of its devices, or at least make a good starting effort. Reports say the headset will run iPad apps on its built-in 4K displays, suggesting a common app ecosystem. It’s also possible that the Apple Watch could be a key peripheral, tracking fitness and also acting as a vibrating motion-control accessory.

VR is a self-contained experience, but mixed reality – which Apple’s headset should lean on heavily – uses pass-through cameras to blend virtual things with video of the real world. In Apple’s case, its own devices could act as spatially linked accessories, using keyboards and touchscreens and ways to show virtual screens springing from real ones.

Apple’s expected headset is supposed to be self-contained, a standalone device like the Quest 2 and Quest Pro. But that interconnectivity, and its position in Apple’s continuity-handoff connected ecosystem, is a big opportunity and a big question mark.

However, Apple does have a big AR head start: Its iOS ecosystem has supported AR for years, and the iPhone and iPad Pro already have depth-sensing lidar scanners that can map out rooms in ways that Apple’s headset should replicate. Apple could emphasize making its existing AR tools on other devices more usable and visible through a new interface.

Apple’s head of AR, Mike Rockwell – the person expected to be leading this new headset’s development – told me in a conversation about AR in 2020 that “AR has enormous potential to be helpful to folks in their lives across devices that exist today, and devices that may exist tomorrow, but we’ve got to make sure that it is successful. For us, the best way to do that is to enable our device ecosystem, so that it is a healthy and profitable place for people to invest their time and effort.”

Quest Pro VR headset, being worn while sitting at a desk — The Quest Pro and other headsets already support hand tracking. Will Apple refine the technology?

Meta

How do we control it?

I’m less curious about the Apple headset display – which sounds extremely promising with a possible 4K resolution per eye and a Micro OLED display – and more focused on how Apple solves what we do with our hands.

Interfaces in VR and AR are very much a work in progress. VR has tended to lean on split game controllers for most inputs, with optional (and steadily improving) hand tracking that still isn’t perfected.

Apple isn’t expected to have any controller at all with its Reality Pro headset. Instead, it’ll likely use both eye tracking and hand tracking to create a more accurate and possibly streamlined style of interface that could make targeting intended actions feel faster. Eye tracking already works this way, sometimes, in headsets that use it: The PlayStation VR 2 has some games that use eye tracking for controlling menus.

Accessibility is a big question here. Apple’s design choices are often very accessibility-conscious, and VR and AR headsets often rely on eye movement or physical hand movements that aren’t always easy for everyone. Voice control is a possible option here, or maybe some Apple Watch-connected functions that improve gesture accuracy and offer some touch controls could be in the cards, too. I don’t know. Apple already added some gesture controls for accessibility purposes on the Apple Watch, so the door’s open.

A lot of hand gestures in VR feel complicated to me, and involve lots of movement. Can Apple make a gesture language that feels as intuitive and as easy as multitouch on iPhones and iPads? It’s a big hurdle.

A woman wearing a VR headset punches an object, shattering it — Supernatural has been a popular VR fitness app for the Meta Quest 2 for years.

Within

Fitness focus

VR has already been a surprisingly effective fitness tool for years. Apple could address a whole bunch of opportunities that could open the landscape a lot further, though.

I’ve used Beat Saber and Supernatural on the Quest 2 for years as home exercise options, but the Quest 2 (and most VR headsets) aren’t designed with fitness in mind. Foam and silicone face pieces get sweaty, hardware can feel weirdly balanced, and no company has really spent targeted effort yet on making headgear that’s aimed at breathability and comfort like a piece of athletic equipment. There are plenty of third-party Quest accessories that help, but it still feels like an imperfect situation.

That’s Apple’s wheelhouse. After designing the Apple Watch, AirPods and, most recently, the Watch Ultra’s new straps, conceiving of materials and design that could feel better during workouts seems like an achievable goal. If the Reality Pro feels like a better piece of workout gear, it could inspire others to invest in better designs, too.

Apple should, and could, integrate the Apple Watch and fitness and health tracking into the headset’s functions. The Quest 2 can do this too to some degree, but most smartwatches and fitness trackers, like Fitbit, don’t have deep connections with VR headsets yet. They should, and again, introducing a clear wearable relationship between watch and headset feels like an overdue bridge.

Of all the things I’m trying to imagine Apple positioning an expensive headset to be in people’s lives, a fitness device keeps coming to mind as a much more likely proposition than a gaming gadget. Not that many people own gym equipment, or have space for it. Could headsets fill that role? I think they could. For me, they already do, sometimes.

Will Apple just focus on making it a great wearable display?

I’m starting to wonder if maybe Apple’s first goal with Reality Pro is just to nail a great audio/video experience. I’ve thought of VR/AR glasses as eventually needing to be “earbuds for your eyes,” as easy to use and as good as headphones are now. VR and AR headsets I’ve used all far short of being perfect displays, with the exception of the highly expensive Varjo XR-3. Could Apple achieve making the Reality Pro a headset that looks and sounds good enough to truly want to watch movies in?

Some reports that the Apple headset runs iPad apps, and that perhaps the iPad Pro with its lidar/camera array is in fact the “developer kit” for the headset, make me wonder if the headset will feel like a wearable extension of iOS rather than a whole new experience.

Inside a pair of VR goggles, showing lenses and a dial with numbers on the outside — The inside of the Vive XR Elite: prescription adjustments allow a wide range of vision to fit… but not as wide as mine.

Scott Stein/CNET

What about my glasses?

VR and AR headsets aren’t making it easy for me to live with my own eyewear. Some hardware fits right over my own chunky glasses, and some doesn’t. As headsets get smaller, a lot of them are trying to add vision-adjustment diopters right into the hardware – like the Vive XR Elite – or add optional prescription inserts.

Maybe someday we’ll have AR glasses that double as our own everyday glasses, and Apple can morph into a Warby Parker optical shop for its retail glasses fittings. In the meantime, these sometimes-on headsets also need to work without being annoying. Am I going to have to order prescription lenses? And how? And will they fit my needs? It’s a big responsibility for VR/AR manufacturers, and I’ve found that some of the insert options don’t meet my heavily near-sighted needs.

What are the killer apps?

Finally, of course, I’m curious about how this headset is defined. The Quest 2 is a game console with benefits. The Quest Pro was aimed at work. The PlayStation VR 2 is a PS5 extension.

The iPhone was a browser, an iPod, and an email device at first. The iPad wanted to be an easy way for users to read and look at the web. The Apple Watch was a fitness device, iPod, and wrist-communicator. What will Version One of the Apple Mixed Reality Headset be positioned as?

Apple did pepper a ton of extras into the Apple Watch at first, almost to test the waters with possibilities: a camera remote, a virtual way to send love taps and scribbles, voice memos. Reports of an avatar-based FaceTime, multiscreen immersive sports, and maybe 3D immersive versions of Apple’s already 3D-enabled Maps are clear starts. Apple’s collaborative Freeform app could be pitched as a mixed reality workplace, and movies could be watched in a virtual theater, in a way that VR headsets have enabled for years (but maybe here with an even better display and audio). AR-enabled iPhone and iPad home improvement apps, 3D scanning apps, and games could be ported over, leaning on similar lidar-scanning AR functions in-headset. Apple fitness workouts, clearly, could be big. Gaming? With Arcade, or some early partners, sure.

Will any of these be enough? Will Apple define a territory that right now has had a hard time defining itself beyond gaming? This first headset may not be the one most people buy, but it could be the one that tries to map out some clear directions for development beyond gaming. With Samsung and Google’s headset on the horizon, and possibly a lot more after that, these devices will start to reinvent themselves as they become more phone-connected and portable. Apple could have an early chance at shaping that narrative… or, if it doesn’t, others will get a chance after Apple. We’ll likely know more, or at least get an early glimpse, at WWDC.

Technologies

25 years after 9/11, the U.S. starts rolling back travel restrictions, from liquids to gate access

Years after 9/11, the U.S. government is walking back some security screenings as threats and technology evolve.

The Sept. 11, 2001, terror attacks reshaped how we travel, from how we pack our toiletries to what we wear when we fly. Airport checkpoints for almost a quarter century for most travelers have meant shoes off. Limitations on liquids. And no tearful, cinematic gateside farewells or joyful welcomes.

But 25 years later, the U.S. government is starting to ease some of the restrictions, which include measures that were tied to other attacks attempted in the months after 9/11.

Last year, the Department of Homeland Security, which was formed after the attacks, said flyers can leave their shoes on at airports, a major change for travelers going through regular security.

That rule was introduced after Richard Reid, who became known as the “shoe bomber,” tried and failed to ignite explosive material in his shoe on a Paris-to-Miami flight in December 2001.

Rules for liquids are officially unchanged. Those regulations for liquids in carry-ons stem from 2006, when British officials foiled a plot to bring liquid explosives on flights.

New scanners installed at some airport checkpoints allow travelers to leave liquids in their bags before going through screening, though availability varies by airport and checkpoint. Limits on liquid container size remain in effect.

“The technologies today are better than they were a long time ago and some of the technology that’s been deployed is better than it was five years ago,” said Jeff Price, a professor at the Metropolitan State University of Denver’s Department of Aviation and Aerospace Science and an airport management consultant.

Another change since that era is the number of options customers have for airport screening. The Transportation Security Administration, for $76.75 covering five years, offers PreCheck, in which travelers undergo prescreening services and can use expedited screening lanes.

“If you’ve got a few bucks, yeah, you can reduce the amount of screening and jump the line,” Price said. “The other side of that is when you do become a member of PreCheck, you give up a lot more of your personal data to the government, and that’s the trade-off.”

There’s also a private option with Clear, with a shorter identification check line, in exchange for prescreened biometric data.

Gate greetings return

The new changes are going beyond security.

TSA this week launched a free program allowing eligible trusted travelers, including TSA PreCheck members, to apply for access to secure gate areas without a boarding pass.

The program is called “Gateside,” and the agency has rolled it out at 13 U.S. airports, including Dallas Fort Worth International Airport, Los Angeles International Airport, Detroit Metropolitan Wayne County Airport and Salt Lake City International Airport.

The area beyond TSA screening has been heavily restricted since 9/11. In launching the program, the agency said PreCheck members who use the program can “meet family members at their gate, join a friend on a long layover for lunch or dinner, visit airport dining and shopping locations, or greet service members returning from deployment.”

Participants must apply online one to three days in advance and receive approval before entering through security.

Privatization attempt

Some of the tweaks to security have been more rocky.

The TSA late last month scrapped a program it called TSA Gold+ that would provide privatized security at certain airports.

The new head of TSA, David Cummins, who took the top role in early August, said that a new screening partnership program will “replace TSA Gold+ to better harness the role of the private sector in delivering a safer, more secure, and more efficient aviation system.”

TSA didn’t respond to requests for further comment.

Tampa International Airport in Florida had reviewed the program starting in May, in part because it could shield the airport from the impact of government shutdowns, airport Chief Operating Officer John Tiliacos told reporters last month. Those shutdowns left TSA officers without regular paychecks for months, and staffing shortages led to long lines at airports around the country. The chance to add new technology was also a draw.

Tampa decided not to move forward with the program, and TSA announced its replacement shortly after. Tampa’s Tiliacos told reporters last month “we weren’t quite satisfied that we were getting all of the answers to our questions regarding the technology” and that drove the airport’s decision to opt out.

Evolving threats

While some rules travelers have lived with for decades might be fading, the aviation sector is still dealing with changing threats.

“You have AI. You’ve got cybersecurity issues that continue to pop up. Drones are a major issue,” said Keith Jeffries, vice president of aviation security company K2 Security Screening Group, who is retired from the TSA and was the agency’s security director at Los Angeles International Airport. “It’s the role of security and protecting, especially the transportation sector, it’s getting broader, and other technologies are trying to keep up.”

As security technology evolves, so does the energy of potential attackers to overcome whatever obstacle they have and send their message.

Deterrents are important, but Jeffries said: “There is no such thing as the perfect security mousetrap. It doesn’t exist.”

Technologies

Houthis reportedly advance to key Red Sea island, further threatening crucial oil choke point

The advance raises the threat to shipping near the Bab el-Mandeb Strait, a waterway that connects the Red Sea to the Gulf of Aden to global markets.

The Iran-backed Houthis reportedly advanced to Yemen’s strategic Perim Island on Friday, delivering a major boost to the militant group’s push to take control of one of the world’s most important shipping choke points.

The capture of Perim Island, which was reported by several news agencies, citing multiple Yemeni government sources, comes just one day after the Houthis seized Yemen’s port city of Mokha on the Red Sea coast. CNBC could not independently confirm the report.

The rapid ground offensive is seen as a severe setback to Saudi Arabia and the Yemeni forces it backs and puts Iran and its proxies on course to exercise control over two critically important oil choke points on either side of the Arabian Peninsula: the Bab el-Mandeb Strait and the Strait of Hormuz.

Perim Island is a small and rocky area of land that divides the Bab el-Mandeb Strait, a waterway that connects the Red Sea to the Gulf of Aden and to global markets.

There are concerns that the Houthis’ advance toward the Bab el-Mandeb Strait could have significant ramifications for global trade, particularly if the militant group ratchets up threats or attacks on Red Sea shipping.

The Houthi advance prompted Saudi Crown Prince Mohammed bin Salman to personally press President Donald Trump for U.S. military intervention, MS NOW reported later Friday, according to a person familiar with the conversations.

The crown prince spoke with Trump twice Thursday and urged him to strike the Iranian-backed group as it closed in on the Bab el-Mandeb. Trump declined, saying the U.S. does not plan to widen its regional military campaign to include the Houthis, according to the person, who was granted anonymity because of the sensitive nature of the conversations. Axios first reported the calls.

A senior administration official told CNBC the U.S. remains focused on protecting core national security interests, including freedom of navigation in the Red Sea, “while empowering our regional partners to take the lead in managing and resolving regional security challenges.”

The official added that the U.S. is “in continuous dialogue with Saudi Arabia.”

The capture of Mokha marked a “major blow” to Saudi Arabia as it raises the possibility of the group exerting a tighter grip on the Bab el-Mandeb Strait, according to Hamish Kinnear, principal Middle East and North Africa analyst at risk intelligence company Verisk Maplecroft.

Mokha is situated about 75 kilometers (46 miles) north of the Bab el-Mandeb Strait.

“The Houthis were already threatening Saudi shipping from previous positions, but their capture of Mocha opens up the possibility of further advances towards the Bab el-Mandeb coastline and a tighter grip on the chokepoint,” Kinnear said in a research note.

As the war continues, Kinnear said both Tehran and Washington believe time is on their side, making a new truce unlikely for now.

“Oil and gas prices, and more specifically refined products such as diesel, will continue to tick upwards while that remains the case – even if US convoys and Strait of Hormuz export alternatives cushion the price impact,” Kinnear said.

The strategic importance of the Bab el-Mandeb Strait has grown significantly since the start of the U.S. and Israel’s war against Iran in late February, with the waterway emerging as an alternative route for crude moving toward Asia.

What next for oil prices?

Oil prices traded sharply lower on Friday, but both major benchmarks could still end the week above $100 per barrel for the first time since mid-May.

International benchmark Brent crude

The resilience of the oil market is being tested by a clearer recognition of the mounting threat to regional supply, strategists at ING said, with energy market participants seen repricing both the duration and severity of the conflict.

Even as flows continue through the Strait of Hormuz, ING’s strategists said flows remain well below prewar levels, underlining how fragile the situation has become.

“Saudi energy infrastructure and crude oil exports from the Red Sea are increasingly at risk, with the Houthis in Yemen targeting Saudi Arabia,” ING’s Warren Patterson and Ewa Manthey said in a research note published Friday.

“As the Houthis have taken control of the Red Sea port of Mokha in Yemen, recent events increase the threat to shipping around the Bab al-Mandeb Strait,” they added.

— Luke Fountain contributed to this report.

Technologies

Wall Street firm believes the AI stock market boom is ‘nearing an end.’ Here’s why

Stretched earnings expectations, extreme concentration and surging equity issuance point to growing bubble risks.

A range of equity market bubble indicators show that while the S & P 500 ‘s rally has further to run this year, its medium-term prospects look poor given how frothy the market has become, according to Capital Economics. “Most indicators suggest the AI equity boom is nearing an end,” Capital Economics’ senior market economist James Reilly said Thursday in a note. Capital has been more bullish than most on the stock market since mid-2023, reflecting a view that AI will be a transformative technology. Its year end-2026 S & P 500 forecast has consistently been above consensus. But the firm has also maintained that the AI-driven rally is a bubble that will eventually burst. To assess and spot a late-stage market bubble, Reilly looks at eight indicators including valuations, earnings, index concentration, equity issuance and foreign interest in U.S. equities. Some of those measures are already at or near levels that preceded previous stock market peaks. The analysis shows that while market variables such as earnings expectations look consistent with a market top, others such as volatility and leverage look slightly less alarming. Earnings stand out as the biggest warning sign. Expectations for S & P 500 earnings growth are around levels seen only at the peak of the dot-com bubble, while long-term EPS growth forecasts have surged to a record high. According to Reilly, the heavy concentration of this expected growth in the tech sector means that any signs of weakness in the tech firms’ earnings will weigh heavily on the index. Other indicators are also flashing warning signs. Index concentration is around dot-com-era extremes, net equity issuance has turned positive and foreign ownership of U.S. stocks is at a record high. Reilly said another wave of IPOs and share sales could be particularly significant, since similar issuance booms have historically coincided with market peaks. “On past form, this suggests that the end of the bubble is just months away, rather than years,” he said. Measures of leverage are not yet alarming compared to other factors, though the analyst warns that they are heading in a “concerning direction.” While volatility metrics look consistent with a mid -stage bubble, Reilly notes that constituent -level volatility isn’t as extreme as it was near the end of the dotcom boom. “While we continue to think that the S & P 500 will rally from around 7,650 now to 8,250 by end-2026 , we ultimately forecast it to fall back to 6,500 by end -2027,” he wrote. Those assumptions would equate to 8% upside this year and a 21% slide in 2027.

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