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Would Delaying the HoloLens Upgrade to 2019 Hurt Microsoft?

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HoloLens 3.0 won’t come until 2019 - Rumors have recently been swirling that Microsoft (MSFT) will delay the launch of its next-generation HoloLens until 2019. The rumors claim that Microsoft has decided to shelve the HoloLens version 2 and that the next HoloLens will instead be the version 3.

Microsoft was expected to debut the HoloLens version 2 in 2017, but according to a report on Thurrott.com, the company has ceased work on the HoloLens 2.0.

Would Delaying the HoloLens Upgrade to 2019 Hurt Microsoft?

 
 

What a delayed HoloLens upgrade could imply

The market for augmented reality (or AR) systems is expected to grow rapidly over the next decade, from $2 billion in 2015 to $175 billion in 2024, according to Global Market Insights. The chart above shows a representation of this projected AR market.

The timing of the next-generation HoloLens offers a hint about Microsoft’s management’s perception of competition in the AR market. Delaying the upgrade could imply that Microsoft is taking its time to design a powerful product that will draw more buyers. 

However, the delay could also be a sign of the lack of competitive pressure on Microsoft in the AR space. Unlike Facebook (FB), which is facing competition from HTC and Sony (SNE) in the virtual reality market, Microsoft’s HoloLens is still in a class of its own.

Seeking life beyond PCs

HoloLens is one of Microsoft’s bets outside of its core PC (personal computer) business. If Microsoft takes its time to fine-tune the next generation of the device, it should be a plus, as it means the company will have the time to come up with a compelling product.

Though Microsoft is dwarfed by Samsung (SSNLF) and Apple (AAPL) in the smartphone market, the company is hoping to lead the AR charge.

Source: http://would-delaying-the-hololens-upgrade-to-2019-hurt-microsoft/