This report explores the development, production and launch challenges that Magic Leap may face, and also proposes solutions on how they can potentially overcome them. Given that Magic Leap is in stealth, most information out there is PR-driven. This report represents over 300 hours of collective research on Magic Leap’s patents (photonics, lightfields, mixed reality etc.), industry knowledge and product risk mitigation analysis to build the best picture I possibly could on Magic Leap and truly add value to readers out there. It’ll be great to hear any feedback. Contact details are at the end. You can also find out more about me at www.nicholas-ng.com.

1. Magic Leap
Development, Manufacturing and Launch Plans
Nicholas Ng – April 2016

2. 2
I want to work at Magic Leap, I believe in the vision and I’m excited to make it a reality. I know thousands
of other very talented people do as well. So I've decided to be proactive and show the kind of value I’d
bring to the team by putting together a report of how Magic Leap should develop, scale and launch.
Given that Magic Leap is in stealth, most information out there is PR-driven. This report represents over
300 hours of collective research on Magic Leap’s patents (photonics, lightfields, mixed reality etc.),
industry knowledge and product risk mitigation analysis to build the best picture I possibly could on Magic
Leap and truly add value to readers out there. It’ll be great to hear any feedback.
The roles I'd most like to join are:
Program Manager - magicleap.com/#/job-post/145081
Project Manager - magicleap.com/#/job-post/177030
Please scroll through the report and get in touch!
Contact details are at the end. You can also find out more about me at www.nicholas-ng.com.
Hello, I’m Nicholas.

3. 3
Potential to lead the $ 1.6tn MR/AR market (2035) is huge but some areas of concern:
• Product Development – Photonics is still very new, and shrinking the scaffolding prototype to a glass form factor will prove very challenging.
• Scaling & Manufacturing – Moving from prototype to millions of units is a huge manufacturing hurdle.
• Launching – Chinese markets are hard to penetrate; CE demand is slowing; ML could be too early for its time; heated competition from tech giants.
Solid program/project management is a recommended next step:
• Break product development challenges (e.g. photonics, miniaturization) into scaffolding/HMD/glass phases.
• Gradually ramp manufacturing from prototype, to LVM methods, then to HVM.
• Sandbox in other developed Asian countries first, start from B2B, then consumer markets.
How I can help in a program/project management role:
• Drive Programs/Projects Forward – Getting things done, helping teams to remove roadblocks or stepping in to get my hands dirty!
• Strategic Planning – Develop scope, resource, timeline; analyze, identify and mitigate risks.
• Building Cross-Team Relationships – Syncing, understanding and empathizing with different teams to solve problems and take corrective action.
TLDR: ML’s biggest challenges are developing/shrinking tech,
scaling production and market launch
Terminology used in report: AR = Augmented Reality, MR = Mixed Reality, VR = Virtual Reality, TLDR = Too long didn’t read, ML = Magic Leap

4. Tech cycles tends to last ~10 years each. What’s next?
Section A: Why and what is Magic Leap
Mainframe
Computing
1960s
Mini
Computing
1970s
Wearable
Computing
2010s+
Mobile
Computing
2000s
Laptop
Computing
1990s
Personal Computing
1980s
Each generational shift has consistent patterns, the next devices will be:
• Move even closer to our body and eyes: More personal than ever before
• Smaller, more mobile and follow us closer as we spend more time with them: We will be more dependent on them than ever before
• More affordable, wider appeal and higher adoption: More mainstream than ever before
Source: KPCB Mary Meeker
4

5. Magic Leap will take us from Smartphones to a new future reality
Evolving away from Smartphones and changing the way we interact with our world forever
Section A: Why and what is Magic Leap
Smartphones are clumsy
Mixed Reality Lightfields
Magic Leap creates virtual objects in the real world that are
indistinguishable from reality.
Final hardware target
Larger than average pair of sports sunglasses wired to a square
pack that fits in your pocket.
How it works
Mobile computer creates images that are projected via optical
fiber and holographic waveguides directly into the eye, while
remaining physically and socially comfortable to the user.
Awkward posture
People use them while hunching for hours.
Not immersive
Limited by small screen sizes.
Demanding on senses
Constant one-handed, intensive hand-eye coordination.
No privacy
The person beside you can peek at your screen too.
Anti-social
We feel guilty using them in front of friends.
Create & Discover
The world turns into our canvas.
Play
The world is now our game console screen.
Know & Learn
The world becomes our classroom teacher.
Entertain
The world is our personal stadium.
Share
Everyone can experience this new world with Magic Leap.
5
Using cutting-edge technologiesML removes physical screen boundaries

6. And ML faces challenges in areas that I can help immediately with
Section B: Where is Magic Leap now
Following pages will go through proposed solutions & approaches in detail
6
Product Development
• Samsung: Shipped hardware products, program
management and product development of next-
gen display technologies (Retinal Projection, VR)
• Samsung: Product innovation (smartphones,
robots)
• Program Manager (magicleap.com/#/job-
post/145081)
• Project Manager (magicleap.com/#/job-
post/177030)
Launching
• Tribesports: Market launch, business
development and partnerships to grow user
adoption and retention
• Samsung: Product strategy and innovation
(display technology, smartphones, robots)
• Dell: Scenario analysis and market strategy
• Business Development Associate
(magicleap.com/#/job-post/179993)
• General Submission (magicleap.com/#/job-
post/106781)
Scaling & Manufacturing
Product
Development
Goal :
Launch a fully
formed product to
the public
Scaling &
Manufacturing
Preferred Contribution
• Dell: Previous procurement strategy,
negotiation and supply chain experience with
Chinese and Taiwanese contract
manufacturers
• Strategic Sourcing Manager, Optical
(magicleap.com/#/job-post/112018)
• Strategic Sourcing Manager, Mechanical
(magicleap.com/#/job-post/112025)
• Lead NPI Program Manager
(magicleap.com/#/job-post/172625)
Launching
My Background
Positions at ML
that I’m keen in
Section C Section D Section E - H

7. Magic Leap’s vision is “To ‘blow away’ our inner 11-year-olds”
The world has not seen something so game-changing since Apple’s Macintosh in the 1970s
Section B: Where is Magic Leap now
The Experience
• Magic Leap creates a mixed-
reality where virtual objects are
indistinguishable from reality. It
makes it possible to see digital
images like monsters as though
they are re actually in front of
you.
• The final hardware target is a
larger than average pair of
sports sunglasses wired to a
square pack that fits in your
pocket.
How It Works
Source: MIT Technology Review
Mobile computer
• Magic Leap is a small, light,
self-contained, complete
computer.
• Input method uses physically
crafted objects and
computational projection on
everyday objects (i.e. totems,
fingers, gestures).
4
Magic OS
• Magic Leap’s own operating
system will run its own apps,
using an SDK that powers a
private beta.
3Mixed Reality Lightfields
• Images are reverse engineered to what we would see in
real life by generating/manipulating light data.
• Tiny projector built into optic fibers channels light
toward a single see-through lens onto the retina to
create large FOV, low-latency visuals.
• Sensors track your eye and environments to
automatically adjust images and focus.
• The result is the same natural way your eyes/brain
neurologically perceives real life objects.
1
Comfortable and socially adept
• Magic Leap sits comfortably on the head and people
won't be shy to wear it in public.
• Allows for talking, eye contact and normal relationships
with people while in use.
2
7

8. Magic Leap is in simultaneous development and production
Section B: Where is Magic Leap now
Hardware Engineering
Mass miniaturization and module nanofabrication phases:
• Optics: MEMS SLMs, calibration etc.
• Photonics: material sciences, custom chip and fab
process design etc.
• Mechanical and opto-mechanical systems
• Connectivity (Radio, Bluetooth, WiFi)
• Sensors: eye tracking, iris recognition etc.
Software Engineering
Initial demos and first releases:
• SDK development and finalization
• AI algorithms: machine learning, deep learning etc.
• Backend development: Cloud APIs etc.
• Frontend development: OS, graphics engine etc.
• Computer vision
• Audio testing, embedded firm/software and drivers
Marketing & PR
• Press releases
• Demand analytics, sales forecasts
• Digital marketing
Creative Production
• Content, gaming & app partnerships
• Character/environment design, visual/audio
development and production
Manufacturing
Aligning manufacturing and hardware development is
challenging because each has moving targets. Currently in
private pilot production cycle:
• 259,000 sq. ft, ex-Motorola manufacturing facility
• Work with contract manufacturers (ODMs/OEMs) to
ramp up production volumes
• Setting up and scaling facilities and equipment
• Line and production automation process planning
• Mechanical and opto-mechanical manufacturing
Production test runs
• Yield optimization
• Quality and reliability testing
Design & User Interaction
• Product and software visual design
• Interaction design
• User experience
Supply Chain & Operations
• Strategic sourcing
• Supply/demand planning/forecasting
Goal is to launch
a fully formed
product to the
public
8

9. 1.5 11
37
258
0.5 12.7
27.5
375
0
50
542
793.5
Seed Series A Series B Series C
Magic Leap has unprecedented support and traction
Enormous potential to become a $ 1.6 Trillion market by 2035
Section B: Where is Magic Leap now
Investment benchmarking: ML, FB, Uber
Source: Crunchbase; TechCrunch; Fast Company; Citibank; Digi-Capital; Fortune
2016F
2017F
2018F
2019F
2020F
2025F
2035F
0.5
4.0
15
49
90
680
1,589
52.9%
$ billions, 2016F – 2035F
MR/AR market size forecasts
$ millions, Seed round to Series C
Magic Leap
Others
193.9
714.9
1,747
82.8%
17.2%
45.4%
54.6%
26.522.1
2013 2014 2015 &
2016Q1
20122011
Magic Leap as % of total AR/VR investments
$ millions, Seed round to Series C
171%
Magic Leap funding exceeds that of
Uber and Facebook combined
1 MR/AR is set to explode: $90B by 2020 and
$ 1.6tn by 2035
2 52% of all MR/AR/VR investments are
going into Magic Leap
3
9

10. Source: Digi-Capital, Goldman Sachs
Hardware is hard
Time and resource intensive
Development can span years, require large specialist teams,
and collaboration between hardware, software, design,
marketing etc.
Little room for iteration
Unlike software where updates are used to patch, once past
the “go to tool” or “ship” milestones, you’ve invested millions
in a mold or the product is in consumers’ hands, making it hard
to make design changes or make recalls.
And so much more…
Planning supply and demand, establish global distribution
channels and at the end, you still have to do the software!
Shrinking takes years of investments
Being pioneers in the field
Magic Leap has been trying to shrink down from the first
scaffolding prototype since 2011, and is successful in getting it
smaller. But cramming the electrical/photonics components,
sensors and improving the FOV and resolution in a sunglass
form factor is something that hasn’t been done before.
Retaining the experience
Current shrinking efforts results in a product that can’t match
the impressive experience of the scaffolding prototype.
Low cost and high yield process
Magic Leap needs an economical, reliable and repeatable
shrinking method.
Silicon photonics is in its infancy
Few companies have successfully delivered commercial
photonic chips (closest is probably IBM), with most of the work
on the area remaining in research labs.
Starting from scratch
Magic Leap has to succeed where no one has before: photonic
chip design, materials and building Magic Leap’s own chip fab
(down to fab design and fab techniques) which is tricky and
very expensive.
Success depends heavily on photonics
For Magic Leap to deliver the experience it wants, it needs to
get photonics right, which leaves little room for risk hedging.
Cutting edge tech comes with high risk
Section C: Product development
Problem: Magic Leap is battling development on 3 big fronts
Given Magic Leap is in stealth, status and development challenges are hard to guess (Reddit has been helpful )
10

11. Section C: Product development
Solution: Magic Leap can tackle development in 3 phases
Start from scaffolding prototype, to large head mounted format, then to glasses form factor
To further develop and help shrink the scaffolding prototype
down to be able to be mounted on the head, several avenues
could be helped to hasten the transition:
Hire experts to help with photonics/optics fabrication
(e.g. waveguides, photonic ICs, SLM etc.)
Partnerships with organizations and academic institutes
who are leading photonics experts. IBM, MIT, UC
Berkeley, and University of Colorado Boulder are at the
forefront of this research.
Acquire rights and technology, enter joint ventures or co-
investments with fabricators and research institutes
Leverage on existing sensor platforms: Kinect, Leap
Motion, Sixense
Begin preparing for manufacturing:
• NPI to plan, direct and coordinate new product and process
development programs by providing technical guidance or
assessment in the design, development, assembly and testing
• Product/marketing requirement documents to be drafted
• Production/project support systems e.g. PLM, PDM and ERP
From Magic Leap’s patent analysis, Magic Leap’s final product
plans to accomplish the following display system:
Projection device that projects an image towards the
viewer's eye and is transparent when no image is
projected
Light-blocking layer that can selectively block light from
outside the device in locations where the projection
device is projecting an image
“Zone plate diffraction patterning device" that sits
between the projection device and the viewer’s eye, and
causes light to pass through a variable diffraction
pattern. This likely creates the 3D effect and alters the
image so it appears at the desired distance from the
viewer.
Magic Leap’s scaffolding prototype also needs the following
subsystems:
• Mechanical chassis
• Sensors: motion control, positional and eye tracking
• Computing unit: CPU, AP, GPU, Connectivity
• Software: Operating
To develop and shrink Magic Leap into the final sunglass form is
really going into the unknown. Just like how computers to 50
years of concerted global R&D to go from room-sized to palm
sized, it’s hard to say how long and how much Magic Leap needs
to do that in fields like photonics, optics and sensors. Someareas
of concern and processes that could help are:
System innovation: novel shielding methods, radical
thermal management systems or new methods of power
management to increase battery life and reduce power
consumption and heat generation
IC innovation: like packaging/mounting methods or die
shrink
Materials/fabrication innovation: like how LIGA used
etching/molding instead of subtractive manufacturing
which shrunk components significantly
The biggest fear is that Magic Leap is held back by the limitations
of physics.
11
Scaffolding Head-mounted Glasses
3
1
2
3
1
2
4 3
1
2

12. Section D: Scaling and manufacturing
Problem: After PD, Magic Leap needs to scale efficient production
Solution: Start from prototype, to low volume manufacturing, then to high volume manufacturing
12
Goal: Confirm manufacturing parameters
• The challenge is to prepare production so that the small build
volume accurately represents high volume manufacturing.
• Design for Manufacturing (DFM): Design and engineer the
product to reduce its manufacturing costs and allow problems
to be fixed early on (least expensive place to address them)
• Engineering Validation Test (EVT): Can we build several units
that function as expected, meeting
all functional requirements?
• Design Validation Test (DVT): Can we build a lot of units that
function as expected and look great, meeting all
functional requirement and cosmetic requirements?
• Supply chain, operations, production and sales forecasts:
Demand should match production supply/capacity.
• Source, consult and negotiate with contract manufacturers.
Goal: Cost reduction, increased yield, shorter time
• It can be challenging but critical to improve on yield rate
because at large volumes, a 1% yield drop can billions of
dollars of impact on the bottom line of the company.
• Production Validation Test (PVT): Can we build tons of units
that that function as expected, look great, and go together
quickly and easily every time, meeting all functional
requirements, cosmetic/appearance requirements, with great
manufacturability metrics, i.e. process capabilities, first pass
yield, rolling throughput yield?
• Increase and streamline manufacturing lines to scale volume.
• Finalize BOM and COGS to track inventory, costs and
financials.
• Endpoint quality control, testing and packaging
Goal: Fully functional prototype within final design
• It is difficult to move from research-lab prototype to
affordable, comfortable consumer product. Prototypes are
one thing, scaled commercialization is another.
• Prototypes are usually cruder 3D prints or one-off designs, so
great efforts must be put on prototyping, which involves:
understanding the product well enough to quickly identify
and rectify failures as production volumes increase.
• Although an iterative and dynamic process, the team has to
refine and finalize engineering (hardware/software) & design.
• Production and project support systems must be in place. This
includes: PLM, PDM and ERP systems.
• Product/marketing requirement documents have to be ready
so all teams have a common frame of reference.
Prototype (1 to 10) Low volume manufacturing (1,000s)
High volume manufacturing
(1,000,000s)

13. 12.4
2.3 1.6 2.4 1.8 1.8 1.3
2.6
4.2
1.3
Consumption Growth, 2015 - 2020
Consumption, 2015
Section E: Market launch
Problem: China is hard for foreign companies to penetrate
Payoff is huge: MR/AR/VR revenue in Asia (mostly China) will be more than twice of U.S. by 2020
China’s spend will
triple by 2020
China has the fastest growing
consumption now and will
surpass the U.S. to have the
highest overall spend by 2024
(not shown on graph)
China is an important market for Magic Leap
40.05
20.25
18.45
11.25
Chinese Consumption Will Triple by 2020
Nominal Private Consumption, $ trillions, 2020F
15.0
6.5
1.7
2.8
2.12.2
U.S.
MR/AR/VR Regional Revenue
$ billions, 2020F
3.0
Source: Economist Intelligence Unit; BCG Analysis; Digi-Capital, Telegraph
China India Japan Germany UK France
U.S.
Europe
Asia
Others
0.40.30.40.4
1 Magic Leap brought Alibaba in to help with China
Eyes and ears in China
For entry in a respectful and sensitive way, to succeed where others have failed.
Aligned vision of the future
Alibaba understands the right way to use Magic Leap to revolutionize e-commerce.
E-commerce applications
Solving the disconnect faced by 400 million people on Alibaba: buying physical items but being unable to see
them with your own eyes.
2
Chinese consumers are fickle sophisticates
Brands have typically been successful in either U.S. or China but not both (e.g. Samsung, Xiaomi) except Apple
because of its brand status. If Magic Leap decides to be a brand, this will be an issue.
Policy disadvantages
Foreign companies complain that regulations fiercely protect local players and make it hard for them to
compete fairly, requiring relationships (关系 or guanxi) with key stakeholders.
Reverse engineering and product commoditization
China’s cheap clones, localized versions that become more popular that the original make foreign companies
wary of IP theft.
But this isn’t enough3
China = double U.S.
MR/AR/VR revenues
U.S. and China will control 65% of all global
MR/AR/VR reality revenue, with MR/AR 3X
of VR’s.
13

14. Section E: Market launch
Solution: Start with other Asian markets first
SG, SK, JP, HK and TW: higher ARPU, and better conditions for a successful Magic Leap launch
Source: Opensignal, World Bank, United Nations, CNA, Business Korea, Guardian, Wired, Allchinatech, Chinadaily
22.4 21.9
12.4 11.8
8.0
1.4 0.7
2.8
0.2 0.1
0.6
0.2
2.3
0.9
0
1
2
3
0
10
20
Japan Hong Kong Singapore South
Korea
Taiwan China India
Asia Spend per Capita (Primary) and Absolute (Secondary)
$ 000s (Primary), $ trillions (Secondary), 2014 – 2016
33
29
18
14
11
13
10
84
97
73
90
86
76
50
0
50
100
0
10
20
30
Singapore South
Korea
Taiwan Japan Hong Kong China India
Asia 4G Speeds (Primary) and Penetration (Secondary)
Mbps (Primary); %(Secondary), Sep 2015
Propensity to adopt new tech and favorable conditions
More willing to pay for the latest and greatest
While China remains the 2nd largest in terms of absolute private consumption; Singapore, South Korea,
Japan, Hong Kong and Taiwan are likely to generate more revenue per user.
Exceeds China in Internet bandwidth and penetration
Magic Leap requires intensive bandwidth and widespread 4G LTE adoption for the best user experience for a
favorable launch and positive press.
Better pro-tech and pro-startup national policies/grants
National technology sandboxes
Singapore and South Korea has committed $14 and $11 billion to tech R&D respectively, aiming to be a
poster child for entrepreneurship. E.g. encouraging disruptive tech like Uber.
Smaller = Easier to manage
A smaller launch can help Magic Leap learn more about Asia, perform tests and prepare for China.
Successful case studies
Singapore Smart Cities
Singapore’s strategy is to be the international guinea pig for technologies for the world to replicate. Case in
point: Singapore has won a contract to build a smart city in India 10 times its own size.
Apple, Samsung and Sony Product Launches
Consumer tech companies have traditionally placed SG/SK/HK/TW/JP in the first wave of launches.
1
2
3
14

15. Section F: Business verticals
Problem: Crowded CE space has peaked, sees slow demand
Solution: That also means the $ 700bn market is ready to be disrupted with MR/AR/VR which is just getting started
They are also seeing sinking demand, and are ripe for disruption
• Smartphones, laptops, TVs and Tablets are seeing decreasing demand year-on-year.
• Even other very recent categories are seeing tepid, unenthusiastic growth.
Price and Volumes for Major CE Products
Millions of units and $, 2010 – 2035F
Source: Citibank, Statista
$ 700bn CE market is entering twilight
• Smartphones ($ 450bn), Laptops ($ 110bn), TVs ($ 90bn), Tablets
($ 50bn) were a $ 700bn market in 2015.
• Only MR/AR/VR is early in its lifecycle, far away from peak value
Smart-
phone
Laptop TV Tablet Smart-
watch
Fitness
Monitor
WiFi
Camera
Smart
Thermo
Drone
2016 Purchase
Intent Rate
48% 30% 30% 29% 13% 13% 11% 9% 7%
2015 Purchase
Intent Rate
54% 36% 38% 38% 12% 12% 10% 9% 6%
% Point Change
Over 2015
-6% -6% -8% -9% +1% +1% +1% 0% +1%
Purchase Intent Rate for Major CE Products
%, 2015 – 2016
Decrease in purchase intent
No change in purchase intent
Increase in purchase intent
1,000 100 10
10
Laptop
TV
Smart-
phone
HMD
Tablet
Game
Console
10,000
100
1,000
10,000
ASP ($)
Units (mn units)
2035
Smartwatch
2030
2025
2020
2015
Lifecycle of CE
Products
15

16. Section G: Product
Problem: Magic Leap may become like Google Glass
Solution: Ensure tech maturity, validate market, assure users of safety/privacy and make it less socially awkward
Glass Ceilings (Problems with Google Glass) Magic Breakthroughs (What Magic Leap can do)
Poor product experience
Developer kits were priced too high, was functionally handicapped (e.g. poor display, interface
lag), and while capable of doing many things, did not do a single task well.
Perfecting the experience in niche segments
By not committing to a release date, Magic Leap can deliver the perfect gaming, media and app
experience, in areas where the technology excels and is actually useful.
Inconsistent product direction
Glass was divided between being an always-on fashionable device versus a only-when-you-need-
it utility device, yet went ahead with a huge, flashy launch and demo video.
Product focus in “Stealth” mode
Magic Leap is on its mission to transform creating, discovery, playing, knowing, learning,
entertaining and sharing, away from public eye until they are clearly defined.
Socially awkward
Glass comes between people when they are talking in real life as a physical and attention barrier,
and is seen as a “geek” toy instead of a head accessory like sunglasses.
Resemble existing headwear and fashion partnerships
Make the device look no different from a normal pair of glasses or sunglasses, and work with
fashion houses for brand leverage and design for mainstream acceptance.
Worries over privacy
Bystanders are concerned over their involvement without their consent, while wearers are
worried about the enormous amount of intimate data collected about them.
Pro-privacy policies and physical kill-switch
Enforce a strict privacy policy that protects the user, and have a physical switch or shield to
disable all cameras, sensors and data-collecting modules.
Health and safety concerns
People are concerned with placing a display and a wireless device which is transmitting and
receiving high bandwidth signals so close to their faces and brains.
Safety advocacy and assurance
Advocacy on how retinal projection is the natural way how our eyes perceive images and since
the wireless modules are stored in pockets, risks are no different from smartphones.
Missing market validation
Google identified the wrong audience/demand, recruited early adopters (geeks and tech
journalists) who gave bad reviews and failed to articulate/market glass in precise terms.
Define and validate market
Talk to people about the product (e.g. ethnography, desk/field research, focus groups etc.) to
define customers and early adopters, then iterate on the product until there is a fit.
16

17. Section H: Product
Problem: What if Magic Leap is like the first smartphone?
The first Smartphone launched in 1994, but took 20 years of iterations for the world to catch up to mainstream adoption
IBM-BellSouth’s Simon Personal
Computer was the first Smartphone
commercially available in 1994
(before the word “Smartphone” existed)
Myth: Human behavior evolves at the same pace as
technology
Most think that people are quick to adopt revolutionary, game-changing technology
like the Smartphone. Wrong:
The Smartphone had a painful product journey for nearly 20 years before
it got really popular outside tech circles.
Humans are creatures of habit. New, successful products respect the
familiar way people use things, and add a layer that people perceive as
added value. People need time to catch up with revolutionary tech.
Magic Leap needs to:
Ensure it helps people do what they want to get done, in a better, more
useful and enjoyable way than existing solutions.
Clearly articulate what problem and pains for users it is solving
immediately over existing devices.
1
2
1
2
17

18. Section H: Product
Solution 1: Start from niche areas and provide genuine value
Magic Leap needs to go beyond the usual gaming, video entertainment and movie use cases
• Local Innovation: Products have to address needs and
problems in a local context. For example:
• While UberX works in most parts of the world, Uber
had to launch UberMoto that catered to the
popularity of bike taxis in India.
• While Spotify subscriptions are billed on credit cards,
Indonesia had low card penetration so Spotify
developed a system that accepts cash.
• Magic Leap could benefit from custom hardware,
software and content for each country/region.
• Crowdsource: By building in a hardware expansion port, we
allow communities to figure out the best use for Magic Leap
and empower them to build solutions while Magic Leap could
benefit from hardware licenses as an alternate revenue stream.
1 2
Current market size Addressable MR/AR/VR Population 2025F
users
2025F
SW sales
Real estate $ 107bn in US, JP, UK, GER 1.4mn real estate agents in US, JP, UK, GER 300k $ 2.6bn
Retail $ 1.5tr ecommerce market 1bn+ online shoppers and in-store shoppers 31.5mn $ 1.6bn
Healthcare $ 16bn monitoring devices ~8mn physicians and EMTs in developed markets 3.4mn $ 5.1bn
Videogames $ 106bn videogame market ~230mn install base of game consoles 216mn $ 11.6bn
Live events $ 44bn live sports ticketing ~715mn World Cup viewers, ~92mn ESPN subs 95mn $ 4.1bn
Video $ 50bn Netflix TAM ~450mn Netflix households 79mn $ 3.2bn
Education $ 12bn K-12/higher education ~200mn in developed markets 15mn $ 0,7bn
Engineering $ 20bn engineering software ~6mn engineers in US, EUR, JP 3.2mn $ 4.7bn
Military $ 9bn defense simulation ~6.9mn military personnel in “high income” countries 700k $ 1.4bn
TOTAL 444mn $ 35bn
First markets for MR/AR/VR disruption:
• Real Estate: Sotherby’s is showing luxury home in AR/VR, potentially disrupting $ 52bn US real estate commissions market;
and Lowes has 6 stores equipped with “Holorooms” to help customers envision their home remodeling plans and get a
competitive advantage in the $ 180bn US home improvement market.
• Retail: Reduce need for in-store display inventory and accelerate erosion in value of physical stores to the extent the
viewing experience can be deployed in the home and via mobile devices.
• Healthcare: Doctors experimenting with AR/VR as a hands-free medical tool, playing into a $ 16bn patient monitoring
device market
MR/AR/VR Market, User and Software Revenue Estimates
$, people, 2025F
Source: Goldman Sachs
Creating genuine product value:
18

19. Source: Digi-Capital, Goldman Sachs
Section H: Product
Solution 2: Execution is critical to the success of Magic Leap
Magic Leap needs clear business / monetization, adoption / marketing and distribution / channels
Additional revenue from royalties
Hardware and accessory sales
MR/AR hardware revenue is projected to be $ 26bn (2025),
additional revenue can be obtained from expansion port /
accessory licensing. (Apple’s MFi program charged $10 per
device, translating into billions of dollars of revenue)
Apps and content ecosystem
Magic Leap can take a cut of all apps and content
purchased/distributed on its ecosystem, similar to the current
Apple and Play Stores. Apple made $ 6.3bn in app distribution
revenue in 2015 alone.
Is volume or revenue priority?
Direct or resellers
Magic Leap has to determine if selling direct (online and retail)
or going with a distributor-reseller channel model with retail
partners that includes incentives, promotions and margin play
is benefits unit sales and revenue.
Pricing
Determine ideal launch pricing for Magic Leap to maximize unit
sales and revenue.
Show off real use
• Set up booths in malls where people can experience how
Magic Leap transforms the way they shop.
• Provide live translation of signs and menus for tourists for
hotel guests, travelers at airports and help centers.
• Give overlay commentary to users whoa re watching a live
match at a stadium (e.g. NFL, F1, Wimbledon).
Event / content partnerships
We can also consider event partnerships (e.g. fashion, car
shows, marathons etc.) as part of a go-to-market strategy,
after compatible and possibly exclusive content partners which
Magic Leap already has (e.g. Legendary, Weta etc).
Demo real use at events
19

20. Section I: Competition
Problem: Magic Leap is likely the most complex and latest
Solution: Remain stealth for the long haul; get it right by addressing and making it accessible to mass markets
MR/AR/VR Competitive Analysis
Market/Cost versus Speed/Complexity
Mainstream (Large Market, Low Cost)
Easy Execution
(Quick-to-Market,
Low Complexity)
Niche (Small Market, High Cost)
Google
Cardboard
Samsung
Gear VR
Facebook
Oculus Rift
Microsoft
Hololens
Meta
Magic Leap
HTC
Vive
Avegant
Glyph
MR/AR
Hard Execution
(Slow-to-Market,
High Complexity)
?Apple
Google
Glass
Sony
Playstation VR
MR/AR will be bigger but more complex than VR
MR/AR products are concentrated in the upper right: potentially lower ownership cost
(no need for a separate computer) and being useful to the masses (unlike VR which is
mostly gaming).
But this is all at the expense of difficult execution, lengthy development cycles due to
technological complexity (holographic technology or retinal projection). In contrast, VR is
easier to execute (using existing screens and motion sensors).
Magic Leap will be the end-game winner in MR/AR:
Everyone, with the exception of Magic Leap and Avegant, uses stereoscopic 3-D that
tricks your eyes and makes you dizzy and nauseous. Both Magic Leap and Avegant uses
retinal projection that has a large FOV and higher resolution that creates vivid images
naturally.
Avegant is positioned as “mediawear”, a personal theatre for video entertainment, which
is limiting in use case. This leaves Magic Leap as the eventual winner, with limitless use
cases, has an enormous market and because of healthy funding, has the potential to get
the product to a price point accessible to mass markets.
Magic Leap should fiercely defend its proprietary intellectual property: strengthen legal
team, file more and deeper patents, license out technology or engage strategic partners
to defend IP.
1
2
4
5
3
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21. Area Product Development Scaling Production Market Launch Business Product Competition
Problem Photonics and
miniaturization will be
difficult
Moving from prototype to
millions of units is a
manufacturing hurdle
Launching in Asia
(especially China) is very
different from America
Demand for consumer
electronics is slowing
Could MR be too early for
its time?
Multiple competitors are
launching technically
simpler solutions earlier
Solution Tackle technical challenges
in stages: Begin from
scaffolding form factor, to
head mounted, and finally
to sunglasses
Ramp from prototype to
small volume
manufacturing, and finally
to large volume
manufacturing
Sandbox in other
developed Asian countries
first, to test run systems
while preparing for a
larger launch in the
Chinese market
Create new product
category and disrupt the 4
largest CE markets:
Smartphones, Laptops, TVs,
Tablets totaling $ 700bn in
2015
Begin consumer adoption
from B2B (real estate,
retail, healthcare),
providing real value and
having strong marketing,
monetization and
distribution
Remain in stealth until the
product is ready, then
ensure that it addresses
consumers’ needs and is
affordable
My
background
• Project/program
management at
Samsung
• Product innovation at
Samsung
• Procurement and
supply chain with
contract manufacturers
at Dell
• Market launch at Tribesports
• Business development and partnerships at Tribesports
• Product Strategy at Samsung
• Product innovation at Samsung
• Strategy at Samsung and Dell
Current open
roles
• Program Manager
(magicleap.com/#/job-
post/145081)
• Project Manager
(magicleap.com/#/job-
post/177030)
• Strategic Sourcing
Manager, Optical
(magicleap.com/#/job-
post/112018)
• Strategic Sourcing
Manager, Mechanical
(magicleap.com/#/job-
post/112025)
• Lead NPI Program
Manager
(magicleap.com/#/job-
post/172625
• Business Development Associate
(magicleap.com/#/job-post/179993)
• General Submission (magicleap.com/#/job-
post/106781
• General Submission (magicleap.com/#/job-
post/106781
Section J: Summary
What I can do to help and benefit Magic Leap immediately
21
Preferred Contribution

22. Section J: Summary
My background can add value to the Magic Leap team
Market launch, business development and partnerships
• Tribesports: Familiar with Asian markets. Started Tribesports in Asia on my own and from scratch. Led product
launch, user growth and partnerships.
Supply Chain & Operations:
• Lead NPI Program Manager
• Strategic Sourcing Manager (Optical)
• Strategic Sourcing Manager (Mechanical)
Business Development:
• Business Development Associate
Sourcing
Business
Development
Everything
Else
Human Resource:
• General Submission
Everything else
• Eric Schmidt told Sheryl Sandberg in 2001, "If you're offered a seat on a rocket ship, you don't ask what seat, you
just get on.
Contract manufacturing and mass production:
• Dell: Previous procurement strategy, negotiation and supply chain experience with Chinese and Taiwanese
ODM/OEM partners.
Portfolio Management:
• Program Manager (Program Operations)
Hardware Engineering, Program Management:
• Project Manager (Hardware Development)
Develop and scale:
• Samsung: Shipped new display products and developed emerging display technologies (Retinal Projection, VR) ,
smartphone and robot projects.
• Samsung: Managed large-scale projects by working with Engineering, Design, Marketing etc. teams and reporting
to executives for entire product lifecycle.
• Academic background: Mechanical Engineering (Undergraduate) and Operations Research (Graduate)
Provide product direction and vision:
• Samsung: Established product strategy (2017-2019 roadmap) and created new revenue/demand for next-gen
displays and “beyond living room” use cases.
• Samsung: Product innovation, developed consumer (not tech) driven concepts using insights uncovered by
market research and ethnography in South East Asia.
Area Open Positions at Magic Leap My Relevant Experience
Project
Management
22

23. Section K: Why I love Magic Leap
Infancy
I’ve always been frustrated with how badly mass-market augmented reality works.
(e.g. Layar in 2009)
A Personal Mission
Fast forward 7 years, nothing has changed. A historical abandoned railway tour I
went to last year promised visitors a personalized tour and immerse them in a
curious mix of history and technology (e.g. see how the old trains arrived at the
station etc.) using augmented reality. The experience was atrocious. I left the tour
wondering “why did it have to be this awful?”
Get Moving
Frustrated with how things are still the same, I saw Magic Leap and decided to join
you guys and to take things into my own hands.
(This slide’s background shows how bad that railway app is: Trains were coming
out from the sky when it was supposed to be on the ground.)
Why did I do this
We share the same vision
Why I belong in Magic Leap
What my resume doesn’t say
Passion
I absolutely believe that Mixed Realities will be integral to our future world.
Global Citizen
10 years of relevant professional/academic experience in 5 countries, speaking
English/Chinese and making friends from all over the world has allowed me to
focus on building cross cultural/technical bridges.
Love Startups
I miss working in a startup environment (used to be in one): getting my hands
dirty, surrounded by passionate and smart people working together towards a
seemingly impossible goal.
Child Tinkerer
I’ve been building and fixing computers, mini solar race cars and gadgets since I
was 12. Magic Leap is an innate extension of my childhood.
Pushing the Envelope
I hate sitting still; I’m always curious and believe in always challenging the status
quo, yet I love making complicated things simple, so technology become
accessible and fun.
Seat on a Rocket Ship
I recognize that Magic Leap is an opportunity of a lifetime to be a part of
something big. Hope to get a ticket!
23

24. Thank You!
Nicholas Ng
Email: nicholas.ngjf@gmail.com
Web: www.nicholas-ng.com
LinkedIn: http://www.linkedin.com/in/nicholasngjf
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