This week the annual Worldwide Developers Conference gets underway in California, where it is expected that the technology giant Apple will introduce the market to a number of new products in its portfolio.
Among the expectations of new electronic dubbing gadgets and new software among existing products, it is also predicted that Apple will show off a new virtual reality (VR) and augmented reality (AR) headset. This will be the company’s first major product line since the launch of the Apple Watch in 2014.
According to Morgan Stanley analyst Erik Woodring, this new product can contribute to solid results for the technology giant.
“AR/VR accounts for less than 1 percent of Apple’s revenue, but AR/VR has the potential to become Apple’s next computing platform worth over $20 billion,” Woodring wrote in a note to clients on Friday.
According to CNBC, this resulted in the analyst jacking up the price target for the technology giant to $190 per share. share, an upside of 5 percent from Friday’s closing price.
Woodring also adds that with technological improvements, more uses and cheaper products could help grow the market for AR and VR headsets to $100 billion by 2030, and $500 billion by 2037.
“Assuming that Apple can achieve the same market share in AR/VR headsets as it has in current product markets, AR/VR headsets could become a $20 to $70 billion business for Apple, or 5 to 18 percent of current total revenue » Woodring wrote.
Jeffries analyst Andrew Uerkwitz is also looking at the new AR and VR headset with great interest, thus raising his price target on Apple from $195 to $210 ahead of the conference.
2023-06-04 07:12:51
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