Apple’s AAPL augmented-reality (“AR”) ambitions are well-known. In fact, CEO Tim Cook is known to be a fan of AR technology. The iPhone-maker’s rumored headset is the most anticipated product in 2022.
However, Apple does not seem interested in getting involved with metaverse, per Bloomberg analyst Mark Gurman. The metaverse is the recent talk of the town where several big techs are focusing their future plans upon.
Apple is unlikely to bring upon the topic of metaverse when it introduces the rumoured virtual-reality headset officially.
Apple is not interested in the idea of a completely virtual world, as put forward by Meta Platforms FB, where users can escape. Apple, on the contrary, is more interested in AR, where users will lay digital objects onto the real world, rather than virtual-reality tools that create an entirely new world.
Apple expects users to enter the virtual world to get something done and then return back to the real world. In fact, Apple is committed in reducing screen time and reliance on devices by building features to keep people away from their products, including giving warnings when people use an app too much.
Apple Inc. Price and Consensus
Apple Inc. price-consensus-chart | Apple Inc. Quote
Apple AR Headset to Boost Market Share
The iPhone-maker is rumored to launch its first AR headset in the second half of 2022. Per 9TO5 Mac, which cited a Digitimes report, the rumored AR headset has completed the second phase of prototype testing and is expected to be in production in the second quarter of 2022. This high-end commercial-purpose device is expected to cost more than $2000.
Meanwhile, renowned analyst Ming-Chi Kuo expects Apple to release a new helmet-type headset with Micro-OLED displays and AR/VR capabilities in 2022. This headset is expected to comprise of 15 camera modules, of which eight will be dedicated for AR video experiences.
AR glasses from Apple, once available, will intensify competition for the likes of Meta and Alphabet GOOGL division Google. Meta recently announced its Ray-Ban Stories smart glasses, developed in collaboration with EssilorLuxottica.
Apple’s Services and Wearables businesses are expected to drive top-line growth in fiscal 2022 and beyond. Although Apple’s business primarily runs around its flagship iPhone, the Services portfolio has emerged as the company’s new cash cow.
Apple’s endeavors to open up its ecosystem through partnerships with the likes of Samsung and Amazon are positives for the Services segment.
Apple currently has more than 745 million paid subscribers across its Services portfolio. The App Store continues to draw the attention of prominent developers from around the world, helping the company offer appealing new apps that drive App Store traffic.
Zacks Rank & A Stock to Consider
Apple currently carries a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Since last year, Apple’s shares have outperformed its Computer and Technology peer, Meta Platforms.
Apple shares have appreciated 33.8% in the past year. The Zacks Consensus Estimate for 2022 earnings has moved upward by a nickel in the past 60 days to $5.82 per share.
Shares of Meta have generated 32.9% rate of return in the past year. The Zacks Consensus Estimate for 2022 earnings has been moved downward by 5 cents in the past 60 days to $13.91 per share.
Alphabet shares have returned 59.9% in the past year. The Zacks Consensus Estimate for 2022 earnings has moved upward by $ 6.43 in the past 60 days to $108.29 per share.
However, Microsoft MSFT is a stock in the same industry that investors can consider. It also carries a Zacks Rank #2 (Buy).
Microsoft shares have surged 45.6% in the past year. The Zacks Consensus Estimate for 2022 earnings has moved upward by 1 cent in the past 60 days to $9.13 per share.
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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.