At War With Apple, Facebook Likely Setting Bigger Sight On Augmented Reality Dominance With Smartwatch Launch, Says Analyst

Facebook Inc’s (NASDAQ: FB) anticipated smartwatch launch in 2022 could be its gateway to gain on the next mobile computing platform — augmented reality, according to investment management firm Ark Invest.

What Happened: The New York-based investment management firm led by Cathie Wood said the social media giant seemingly holds the belief that a wrist device will be the interface for augmented reality.

The social media company is counting on the budding AR space in a bid to take control of "the next mobile computing platform"  and lower its dependence on Apple Inc (NASDAQ: AAPL).

Facebook had in March revealed it is working on soft robotics to build comfortable, all-day wearable devices that will be an interface for augmented reality. It will be wrist-based because it’s located right next to the primary instruments one uses to interact with the world — hands — it had then said in a blog post.

“With a device at the wrist, electromyography sensors first will intercept the motor nerve signals that travel from the brain to the hand and then translate and relay that data to AR glasses, giving users the ability to control their new augmented reality with simple hand gestures,” Ark analyst Nicholas Grous wrote in a note on Facebook's efforts with smartwatches.

See Also: Will Apple Preview Highly-Anticipated Mixed Reality Goggles At WWDC 2021?

Grous said the future of mobile computing could be a pair of glasses and a watch, not a mobile phone but noted that the first few versions of Facebook’s smartwatch are unlikely to include this tech.

The popular investment firm holds 285,700 shares, worth $94.64 million, in Facebook. Ark has recently divested its entire stake in Apple. 

Why It Matters: Experts see the augmented reality wearable market to grow fast in the coming few years and both Apple and Facebook are known to be working on the technology. Apple is expected to launch a mixed reality headset in mid-2022 followed by an augmented reality glasses launch by 2025, as per well-known analyst Ming-Chi Kuo.

Facebook’s smartwatch foray next year comes at a time when the two tech giants are at odds over privacy issues. Apple has limited the kinds of data that apps such as Facebook's can collect.

Price Action: Facebook shares traded unchanged at $336.77 in the pre-market session on Tuesday and Apple shares traded 0.4% lower at $129.92.