Apple Could Lose AR Lead To Oppo Due To Lack Of Innovation

Apple could be losing its lead in the augmented reality space soon. This is what renowned Apple leaker and KGI Securities analyst Ming-Chi Kuo claims after seeing the potential of Oppo’s AR solutions.

Apple Insider obtained a copy of Kuo’s latest note to investors on Wednesday and disclosed that the analyst is claiming that Apple’s lead in the AR market has been “significantly narrowed” by the Chinese company. According to Kuo, Oppo has caught up to Apple’s AR solutions thanks to its solid hardware and software integration. Moreover, Oppo’s technologies are notably less complex and less expensive that what Apple offers.

Kuo also pointed out that Oppo managed to reach Apple’s AR level in just a span of six to nine months. On top of that, Oppo has successfully recreated Apple’s AR experiences with the use of low-cost components from Qualcomm and MediaTek.

The analyst claims that Apple is losing its lead to Oppo due to the Cupertino giant’s lack of software innovation despite having ARKit technology. Kuo cites the absence of a “heavyweight” iOS-only AR app as proof of his statement.

“We believe Apple’s biggest challenge in innovation in recent years has been in software, not hardware,” Kuo notes. “In several cases we have seen Apple lagging in software versus hardware development, which bodes badly for its innovation strategy of software and hardware integration.”

Kuo also used the “Honour of Kings” mobile game to prove his point. Tencent is bringing the Chinese game to the rest of the world by launching an app that is compatible for both Apple and Oppo devices. The demo for the AR version of the gaming app has “much higher” requirements than existing AR apps, but Oppo is able to meet those requirements unlike Apple.

On the whole, Kuo warns Apple that it should be alerted by Oppo’s progress in AR, which has already outpaced Google’s ARCore. He believes that if Oppo manages to outpace Apple in this market, the Cupertino giant’s iPhone sales in China would be impacted negatively, as per Business Insider.

Apple’s iPhone 7 Plus was the second best-selling smartphone in China in 2017. The company’s performance in the Chinese market also improved with the release of the iPhone X, 8 and 8 Plus handsets. However, analysts strongly believe that Apple’s China share could drop over the years as local companies like Huawei and Xiaomi continue to release high-end phones with more affordable price points, according to Forbes.