“Apple’s move into augmented reality could boost iPhone and App Store sales, resulting in as much as $8 billion in revenue for the tech giant, according to Bank of America Merrill Lynch,” Kate Rooney reports for CNBC. “‘We think AR apps will command a price premium,’ Wamsi Mohan, senior equity research analyst at Bank of America Merrill Lynch wrote in a note to clients Tuesday. ‘We reiterate our Buy on strong capital returns, continued strong growth in Services revenues and AR providing yet another competitive advantage.'”
“The bank increased its price target from $225 to $230, about $40 above where the stock was trading Tuesday,” Rooney reports. “Shares of Apple are up more than 30 percent year over year and 12 percent so far this year.”
“Mohan says the “revenue opportunity” is for $6 billion to $8 billion in additional revenue from now until 2020 with $1 billion of that coming from AR apps and the rest coming from increased iPhone sales due to the new technology,” Rooney reports. “More than 1 billion Apple devices are already equipped for augmented reality apps, which Mohan said makes iOS a logical and “extremely attractive” option for those developers.”
Read more in the full article here.
MacDailyNews Take: Apple’s ARKit 2 will unleash the AR revolution!
Augmented Reality is going to change everything. — MacDailyNews, July 21, 2017
The impact of augmented reality cannot be overstated. It will be a paradigm shift larger than the iPhone and the half-assed clones it begat. — MacDailyNews, August 4, 2017
Someday, hopefully sooner than later, we’ll look back at holding up slabs of metal and glass to access AR as unbelievably quaint. — MacDailyNews, July 28, 2017
Stylish eyewear that actually delivers useful data to wearers is potentially a huge market and Apple is exactly the company to deliver just such a wearable. — MacDailyNews, January 25, 2017
SEE ALSO:
Golfshot introduces Golfscape AR augmented reality feature exclusive to Apple’s iOS devices – May 31, 2018
Shopify uses Apple’s ARKit to bring augmented reality to e-commerce – February 16, 2018
Apple acquires Canadian augmented reality headset startup Vrvana – November 21, 2017
Apple working on augmented reality headset running ‘rOS’ to ship as early as 2020 – November 8, 2017
Apple’s AR smartglasses – understanding the issues – August 29, 2017
Bernstein: Apple’s ‘smartglasses’ opportunity ‘could be enormous’ – August 25, 2017
Apple working on several prototypes of AR glasses – August 4, 2017
Apple’s next big move: Augmented reality – August 3, 2017
Apple’s rumored new glasses will be an even bigger deal than the iPhone – July 28, 2017
Apple smart glasses are inevitable – July 28, 2017
New app using Apple’s ARKit lets iPhone recreate 16 weeks of painstaking rotoscoping on the fly – July 27, 2017
Gene Munster: Apple Glasses will soon outshine the iPhone – June 28, 2017
Gene Munster: Expect Apple smart glasses in mid-2020 – June 27, 2017
Augmented Reality: Apple’s revolutionary offering leaves Google’s Android woefully behind – June 26, 2017
Apple’s AR is much closer to reality than Google’s – June 26, 2017
UBS: Apple may eventually launch ‘iGlass’ smart glasses – June 20, 2017
IKEA’s forthcoming Augmented Reality furniture app powered by Apple’s ARKit – June 19, 2017
Apple’s single most important WWDC 2017 announcement: ARKit – June 11, 2017
Apple CEO Cook discusses philosophy behind HomePod, ARKit’s potential market impact – June 6, 2017
Overnight, Apple will own the world’s largest augmented reality platform – June 7, 2017
Analysts: Apple’s Corning investment hints at AR glasses and wireless charging tech – May 14, 2017
Apple awards Corning $200 million in first Advanced Manufacturing Fund investment – May 12, 2017
Leaked document details Apple employee eye injuries, hints at Apple AR glasses – April 20, 2017
Apple began working on augmented reality glasses more than a year ago, sources say – March 27, 2017
Apple is working on several AR products, including glasses, but first in iPhone, sources say – March 20, 2017
Why Apple will make smart glasses – January 25, 2017
It’s nice to hear such optimism about AR for Apple, but so far AR hasn’t done anything special for Apple. Currently, are there many AR apps for the iPhone and iPad? Will AR on iOS require special AR goggles or glasses to get full use out of it? One would think Apple has a good chance of dominant market share on the iPhone considering how powerful A-series processors are on most iPhones. I just wonder if Apple users will be happy to spend more money on AR glasses to get the full benefit of AR.
I personally don’t quite understand what AR can do for the average consumer to make it so valuable to Apple. People are always throwing around the terms AR and VR but so far neither have had much of an impact on consumers due to the high cost of hardware to run it.
Real reality is not good enough so technology provides a solution. A much older AR is outlined in the Bible in which it says that Mother Nature is not real enough so it introduced an outside source, God, as an artificial overlay to Mother Nature.
Although there is overlap in VR and AR, the VR side mostly requires costly equipment while AR is already in popular use: Appe Maps, for just one example. And Pokemon is so popular that people are walking into holes and bumping into each-other.
No AR is profitless for years to come, the hardware and software just isn’t ready. All hype no beef….
Anything with an electronic overlays is AR and the segment is huge already.
In my experience, reality always prevails even without augmentation. I’d much rather augment me.