Anyone who follows Apple (AAPL, Financial) has already identified a few trends in which the tech mammoth functions. One such trend is acquiring a tech startup that specializes in a particular technology when Apple plans to roll out the same in one of its existing gadgets or a new-to-the-market gadget. We have seen this happening with the finger print sensor. This time, Apple has augmented reality in mind and to extend its ambition, it has acquired Metaio, a Germany based augmented reality software maker. Here’s a lowdown on all that’s going on and how this might affect the tech space.
A little about Metaio
Headquartered in Munich, Metaio is a pioneer in augmented reality technology. The company was founded in 2003 by Thomas Alt, current CEO, and Peter Meier, current CTO, and has subsidiaries across U.S. In 2013, Metaio won Volkswagen Augmented Reality Tracking Challenge and in 2014 it won the award for “Bet Campaign”. According to Tech Crunch, Metaio boasts a big community of developers with a 1000 customers and 150,000 users worldwide in 30 countries. Junaio, its AR offering was available on Google (GOOG, Financial) Play Store and App Store until last week when the company put up a notice on its website mentioning that its products and subscriptions are no longer available for purchase. Five days later, the Wall Street Journal reported that the company has been bought out by Apple.
Here’s a video demonstrating some AR capabilities of Metaio.
About the deal
Like similar other deals, Apple was not ready to come out with much information regarding the purpose of the acquisition or the digits pertaining to the deal. Apple has always been very discreet in such matters and doesn’t like the market to have any idea of what’s going on in its workshops – that ruins the surprise element in its product launch events. Analysts following the company believe Apple had a very small team working on AR technology for some time now and may be the company is thinking of venturing into a new product. That being the case, it’s no surprise the iPhone maker went for an acquisition.
How all this can affect the tech space
Industry experts have a lot of opinion and thoughts post the announcement of the deal. While some believe the new technology will become a part of the next iPhone, some believe it’s meant for a new device such as a wearable glass. Whatever may be the case, it’s going to mean huge competition for both Google and Microsoft (MSFT, Financial). Google already has Google Glass, which comes much close to what Apple might have to offer in terms of a wearable. However, Apple is always clear about distinguishing its offering and that’s where Metaio may come in. Even HoloLens from Microsoft may face stiff competition from Apple if the Cupertino company decides to enter the world of virtual reality with Metaio’s capabilities.
Apple has already patented a virtual reality headset that works with iDevices. Reports suggest the headset will come with a 3D hyper reality display and motion sensing vital 3D interface. May be this is where Metaio becomes important. Apart from this there are several other reports. According to 9To5Mac, “Apple is working on an augmented reality feature for its Maps app that lets you point your phone at a street to see what business are around, or a restaurant’s exterior to see the menu or specials.”
Augmented Reality and Virtual Reality are perceived as the next battleground after smartphones and tablets and any company that can gain expertise in these fields is likely to enjoy a competitive edge. Juniper Research believes the acquisition can give Apple an 18 to 25 months head start in AR technology. The research firm also estimates that the market for AR is going to expand 10 folds in coming years. With so much scope being out there, Apple’s investment in AR surely seems to be a right choice. How well Apple will be able to benefit from this technology is what we will have to see when the time comes.
