Analyst: This Could Be Huge for Apple Stock
Apple Inc. (NASDAQ:AAPL) has been having a tough time since the beginning of this year. Things got worse after the latest quarter’s results, when reports of slowing “iPhone” sales dented AAPL stock. However, one analyst predicts Apple might be working on something bigger than the iPhone.
Piper Jaffray’s Gene Munster has had an interesting revelation. He believes Apple is working on a new product that has the long-term capability to replace the iPhone. Yes, this product could dethrone the iPhone to become the biggest revenue-generator for the company. (Source: “Here’s What Will Replace the iPhone, says Apple Analyst Gene Munster,” Fortune, February 9, 2016.)
According to Munster, a new phenomenon is about to take over the tech world by storm, which could eventually replace screen devices like smartphones, tablets, and computers.
“We believe 10 years from now Generation Z will find reality inefficient,” says Munster. (Source: Ibid.)
Munster is hinting at a fairly new concept called “mixed reality,” which is an amalgam of both virtual reality (VR) and augmented reality (AR) that will allow people to interact with both physical and digital objects in the same space.
As Munster continues, “Generation Z will see the benefits of mixed reality headsets that augment the world with real-time information as they need it and in their field of view, without needing to look at one piece of information at a time on a smartphone.” (Source: Ibid.)
Munster predicts that Apple is working on a mixed reality object that could very well replace the iPhone in next five to 10 years.
Munster says, “As a starting point, we expect in the next two years Apple will add VR to the MFi Program (Made for iPhone), which should make it easier for third parties to build virtual reality headsets powered by the iPhone, much like Samsung’s Gear VR today.” (Source: Ibid.)
Munster’s prediction follows a patent filed by Apple last year that reveals that Apple might be working on virtual reality headgear to complement its iPhone. (Source: “Apple Patents A VR Headset For iPhone,” TechCrunch, February 17, 2016.)
He goes on to predict, “In the next 5–10 years, we expect Apple to release a mixed reality headset with the long term goal (15+ years) of replacing the iPhone.” (Source: “Here’s What Will Replace the iPhone, says Apple Analyst Gene Munster,” Fortune, February 9, 2016.)
Virtual reality and augmented reality are taking off this year, with all major tech companies invested in the technologies now. Goldman Sachs predicts it to be an $80.0-billion industry by 2025. (Source: “Goldman Sachs Has Four Charts Showing the Huge Potential in Virtual and Augmented Reality,” Bloomberg, January 13, 2016.)
It is high time Apple steps up its technology game to shut down naysayers who have been decrying its lack of innovation. This new product will certainly help shed some of the concerns surrounding Apple’s sole reliance on one product.
Mixed reality will certainly take Apple back to the forefront of the tech world. I wouldn’t be surprised to see AAPL stock taking center stage once again.