One Wall Street analyst, Evercore ISI’s Ami Daryanani, has decided to size up the business opportunity for Apple’s AR glasses.
In a note to clients Thursday, Evercore ISI analyst Ami Daryanani said he expects Apple to introduce its first computer headset later this year. “We expect the hype into a formal launch in late 2022 to serve as a catalyst to the stock price,” Daryanani said.
An AR/VR device would enable Apple to extend its iOS platform and App Store from the iPhone to a brand-new market, he said.
In a base case scenario, Apple’s headset would have a comparable trajectory to the Apple Watch, Daryanani said. As such, it would contribute $18.1 billion in sales and 19 cents in earnings per share in its fifth year on the market, he said. That would be about 4% to 5% of estimated sales and earnings.
In a bullish scenario, the headset would follow the adoption trend of the AirPods wireless earbuds. That means it would generate $38 billion in sales and 41 cents in per-share earnings at scale, he said. In that case, it would account for about 8% of sales and earnings.
MacDailyNews Take: Apple reportedly is working on two headsets. The first is a mixed reality (AR/VR) headset that is expected to retail for some $3,000. it will appeal mainly to developers who will use it to prepare apps and content for Apple’s lightweight AR glasses to arrive in 2023 or 2024. It’s this second device, one for the mainstream, that is Apple’s real business opportunity.
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