Apple's 2024 Focus: Wearable Devices, Upgrades to AirPods, Apple Watch, and Vision Pro

According to senior Apple analyst Mark Gurman, Apple is gearing up for a busy 2024, with a slight shift in focus. For the past 15 years, the iPhone has been the centerpiece of Apple's product strategy. However, next year, the company plans to divert some attention to other areas, particularly the wearable device business.

While the iPhone will still receive upgrades in the coming year, Apple's primary focus will be on other product categories. The iPhone 16 is expected to undergo minimal changes, with Apple opting to retain the design of the iPhone 15. The Pro version, however, will see an increase in screen size. Additionally, the low-end model will feature a multi-function button and a dedicated button for video recording.

Apple's wearable device business, including the highly anticipated mixed reality headset called Vision Pro, will take center stage. Vision Pro represents a new product category for Apple, while the AirPods and Apple Watch are also set for significant upgrades, marking the most substantial improvements since their initial release.

Over the past year, Apple's sales have plateaued following a surge in consumer technology spending during the pandemic. In the 2023 fiscal year, which ended in September, all of Apple's major products, such as the iPhone, Mac, iPad, and wearable devices, experienced a decline in sales, except for the services business, which remained a bright spot.

Although Wall Street analysts do not anticipate a major resurgence in Apple's product sales this fiscal year, the company will have new technologies to promote. Alongside the Vision Pro headset, Apple has plans to launch new entry-level AirPods and an Apple Watch with enhanced health features.

To address some of the challenges in its existing product lineup, Apple is counting on the new AirPods to make a difference. The current third-generation mid-range AirPods, priced at $179, have not garnered strong consumer interest. Despite their resemblance to the AirPods Pro, they lack significant improvements compared to the $129 second-generation AirPods released in 2019.

Apple is also aiming to rejuvenate the AirPods Max headphones. The sales performance of these premium over-ear headphones has not met expectations, preventing Apple from investing in new hardware or software features. However, the company plans to introduce a model that replaces the Lightning charger with USB-C and may introduce new color options. Analysts anticipate that Apple will unveil these enhancements alongside new AirPods in the coming year.

Furthermore, Apple is working on a substantial software-based upgrade that will incorporate hearing aid functionality. This feature is expected to be released later in the next year, potentially paving the way for significant developments. Apple sees its foray into hearing aids as having the potential to disrupt the multibillion-dollar industry.

The momentum for AirPods is expected to continue into 2025, with Apple planning to upgrade the AirPods Pro. The final design of this headset has not been determined yet, and other new features, such as body temperature and health tracking, are still in the early stages of development.

Apple Watch will also receive a boost, as the company intends to release at least one watch with a fresh appearance. Additionally, Apple is actively working on two health features to enhance the capabilities of its smartwatch: high blood pressure detection and sleep apnea detection. These advancements aim to take the Apple Watch to new heights in terms of health monitoring and management.

The current lineup of Apple Watches is not expected to perform well during this holiday sales season due to a lack of compelling features. With minimal changes to the device this year, consumers have little reason to upgrade. While the new double-tap gesture is a neat addition, it alone is not enough to drive upgrades. Similarly, a new chip or a slightly brighter screen does not offer significant incentives. However, upcoming health features have the potential to generate real marketing power, and analysts believe they could help boost device sales.

Image Credit: Apple

Taking center stage in 2024 as Apple's largest new wearable device, the Vision Pro headset is bound to attract attention, even if it doesn't contribute substantially to revenue initially. As an indication of its imminent launch, Apple commenced training hundreds of retail employees in January on how to use and sell the device.

Apple is still refining the key selling points of the Vision Pro, but the company appears confident that it will become a significant revenue driver within a few years. Insiders draw parallels to the early iterations of the Apple Watch, which were underwhelming until the fourth version hit the market with improved hardware, leading to a surge in sales.

A promising sign of the Vision Pro's impending release is the latest beta version of the operating system, visionOS, receiving further improvements. The build number of the software is now closer to the production version number, indicating that major bugs have been addressed. Reports suggest that a growing number of Apple engineers are using Vision Pro in company buildings and even at home, suggesting they may be testing a newer operating system version beyond the beta.

As mentioned by Gurman, Apple is not only training retail employees but also increasingly showcasing the Vision Pro to the press, particularly highlighting its spatial video capabilities. It is expected that Apple will commence sales of the Vision Pro sometime between late January and February next year.

In addition to wearable devices, the iPad will undergo significant upgrades. The Pro version will see improvements, and the Air version will offer a larger screen option. Meanwhile, the iPad mini and entry-level models will be equipped with faster chips. The Mac lineup will also experience a major upgrade, with the MacBook Air set to incorporate M3 chips, and new MacBook Pros codenamed J614 and J616 already in development.