Strategy Analytics predicts that total revenues (consumer spend plus advertising revenues) from AR content on dedicated AR hardware (excluding smartphones) will reach just under $0.7B by 2026, up from almost zero in 2020. We believe that the successful AR devices will focus on utility and social communications rather than entertainment. Social applications will be the fastest growing content category. AR-enabled social apps, such as SnapChat, are already popular on smartphones. As consumer AR devices launch, we anticipate that they will make a successful transition from the smartphone to the headset.
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