“Apple’s key iPhone X augmented reality component supplier, Lumentum, reported better than expected Jun-18 quarter results ($301M vs expected $287M). Upside in the quarter was driven by sooner than anticipated ramp in the AR/3D sensing business,” Gene Munster and Austin Bohlig write for Loup Ventures. “The company continues to anticipate order volume to significantly accelerate in Sep-18 and guided revenues ($340M – 350M) above Street expectations ($336M).”

“What this means for Apple: given the expected ramp in VCSEL arrays, we believe this fall, Apple will offer 3 iPhone models (up from 1 today) that include AR/3D sensing. This should provide slight upside to the Street’s iPhone ASP in Sep-18 ($731) and Dec-18 ($790),” Munster and Bohlig write. “iPhone X demand remains healthy. Apple remains committed to augmented reality.”

“We anticipate 3D sensing will only be front-facing on the new iPhones and believe Apple will be incorporating this technology in new product categories such as the iPad,” Munster and Bohlig write. “Given Lumentum and other VCSEL suppliers continue to be capacity constrained, we believe Apple has once again secured the majority of all VCSELs produced in 2018, further expanding their lead in AR.”

Read more in the full article here.

MacDailyNews Take: What Apple wants to own, Apple owns.

SEE ALSO:
Analyst: Augmented reality could be an $8 billion revenue opportunity for Apple – July 10, 2018
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