This is the Biggest Innovation of My Lifetime

When I was a kid, I witnessed the toy that would kickstart a $150 billion market.

The toy in question was the Nintendo Virtual Boy. If you haven’t heard of it, that is because the Virtual Boy was an epic failure, and Nintendo tries to pretend it didn’t happen.

That said, the Virtual Boy was one of the first virtual reality gaming devices on the market, and I begged my parents for it. In fact, we did dozens of chores in the conquest of this cumbersome red headset.

Now, you may be laughing because the Virtual Boy looks like the kind of toy you would pull out of a McDonald’s Happy Meal. But trust me, every kid in my neighborhood wanted one.

In the end, I was too young, and my parents denied me one. When a neighborhood friend got one and agreed to share, it was the best surprise I had ever gotten.

And the surprises kept coming. In the next week, the Virtual Boy started giving both of us headaches. His family got rid of it in a month.

Before our headaches even subsided, the Virtual Boy was discontinued.

Over the course of the device’s short life, 770,000 units were distributed. It turned out that the 1990s were too early for a successful commercial VR device. The technology simply wasn’t there. 

Yet the Virtual Boy’s failure and Nintendo’s humiliation hasn’t stopped other companies from pursuing virtual reality. They all can smell the money. 

Facebook, Google, Intel, Microsoft, Samsung, Amazon, and Qualcomm have all pursued virtual reality in the last handful of years. These companies are also incredibly interested in augmented reality, virtual reality’s more commercially applicable cousin.

The company that releases an AR product will tap a $90 billion industry. 

In 2014, Google got close to a breakthrough, giving the world Google Glass. Unfortunately for Google, the tech wasn’t there, and Google Glass became the laughingstock of the internet.

But now, a full three years later, one company is close to an augmented reality product.

It was leaked last week that this company is working on device that will use augmented reality, virtual reality’s cousin, to help consumers interact with the world. Bloomberg estimates that this company could launch its augmented reality device as early as 2019, and if it is successful, it will take the first major stake of a massive, evolving market.

It will also be the first company to provide a major breakthrough on a technology that has taken my entire lifetime to develop.

I am going to tell you upfront that the company planning to release this augmented reality product isn’t a hidden gem. However, the $5 technology company that provides technology crucial for the device is. This company is poised to experience quadruple-digit growth as soon as the product is released.

Let me explain.

First Off, Why Is Augmented Reality Important?

Before I can tell you about this powerhouse picks-and-shovels play, I need to tell you the difference between augmented reality and virtual reality.

It’s funny, because everyone I talk to knows what virtual reality is. Yet, when I ask them about augmented reality (otherwise known as AR), they shake their heads in confusion.

This is funny because the average consumer interacts with augmented reality far more often than virtual reality.

Augmented reality is when elements of virtual reality are placed in the real world. A good example is the wildly successful AR game Pokémon Go, a smartphone application that allowed users to catch Pokémon in the real world.

Virtual reality is a smaller market. In its current form, it caters mainly to gamers. Oftentimes, when people talk about market growth, they combine these two separate technologies. However, a closer look reveals that augmented reality is far more profitable in commercial application.

Augmented reality takes a significant chunk of the AR/VR market, more than doubling the projected revenue generated by virtual reality. This is because augmented reality can be used commercially.

If the proper augmented reality device is developed, you could potentially see how a piece of furniture would look in your house before you buy it. You could follow projected directions to your destination on Google Maps.

Which brings us to the next question: Which company is going to get to the augmented reality device first?

As I hinted above, you likely already know the company’s name. More than likely, you’re reading this email on one of its devices.

Apple Takes on Augmented Reality

If you haven’t guessed by now, the company shouldering its way into the augmented reality/virtual reality market is Apple.

Last week, news leaked that Apple is finalizing work on an augmented reality product. Bloomberg said this device could arrive as early as 2019.

You can see the leaked prototype photo below:

The second the leak happened, consumers and investors started paying attention.

You see, a new device from Apple is long overdue. Ten years ago, the company changed the world with the iPhone. Thanks to the iPhone, seeing a loved one’s face is just a few button clicks away. You can hail a ride or order food through an application. One of the best cameras on the market is always snug in your hand. 

Yet Apple has failed to have another breakthrough since the death of Steve Jobs, and this has many investors wondering whether Apple is up to the task.

With pressure high, Apple invested over $11.2 billion into research and development last year, likely with the end goal of creating another product as groundbreaking as the iPhone.

And, if multiple sources prove correct, that device is going to revolutionize augmented reality. That is why I am going to share this secret with you.

The secret is that Apple isn’t going to provide investors with the best profits. Of course, the company will benefit handsomely from being the one to break through the augmented reality barrier. But Apple still pays a significant amount to its technology suppliers — suppliers that are much smaller with more room for dynamic growth.

My colleague Jason Stutman has been following the augmented reality space for a while. In fact, just under two years ago, he unearthed a key company to the augmented reality boom. Today that stock has nearly doubled.

A few weeks ago, he shared with me that he had found another small technology supplier — this one providing crucial technology for Apple’s latest product.

He put together a presentation for investors who are interested in learning more about this groundbreaking profit opportunity, and you can view that presentation here.

To your wealth,

Alexandra Perry

@AlexandraPerryC on Twitter

Alexandra Perry is a contributing analyst for Wealth Daily and Energy and Capital. She has multiple years of experience working with startup companies, primarily focusing on artificial intelligence, cybersecurity, alternative energy, and biotech. Her take on investing is simple: a new age of investor can make monumental returns by investing in emerging industries and foundational startup ventures.