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This Analyst Thinks Apple Glasses Will Be Bigger Than the iPhone
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Analyst Gene Munster, who works for venture capital firm Loup Ventures, believes that Apple Inc.’s (AAPL - Free Report) rumored Apple Glasses will eventually become bigger than the iPhone.
Apple Glasses are the tech giant’s wearable augmented reality (AR) headwear in the same vein as Google’s (GOOGL - Free Report) failed Google Glass and Snap’s (SNAP - Free Report) Spectacles. These glasses would allow users to view digital content on top of the real world, including vital information that they currently rely on iPhones to provide.
Munster is guessing that Apple Glasses will be released in 2020, based on “significant resources” that the company is putting into AR (think ARKit, a platform for developers to create AR apps for iOS, and Apple’s recent SensoMotoric Instruments acquisition; SensoMotoric is a German company that makes “eye tracking” technology like glasses).
And as this new AR-based technology emerges, Munster believes Apple’s iPhone will peak in 2019 before beginning to decline. “We expect iPhone revenue to grow at 15 percent in FY18 (essential the next iPhone cycle) and account for 64% of revenue," Munster said. "We believe tough comps after the next iPhone cycle will have a negative impact on iPhone growth in FY19, and in FY20 we believe Apple Glasses will start to impact iPhone sales."
Additionally, Munster expects iPhone sales to decline 3% to 4% year-over-year between 2020 and 2022. He thinks that while the iPhone will still be present and used in people’s lives, the device will no longer make up the bulk of Apple’s annual revenue. "In 10 years, we expect the iPhone will be around, but be a much smaller part of Apple's business as Apple Glasses slowly gains market adoption,” said Muster
Investors should note that Apple has not confirmed it’s working on smart glasses, though the company has discussed in the past how it thinks AR will play an important role in technology’s future, notes CNBC.
Apple is a #3 (Hold) on the Zacks Rank, with a VGM score of ‘C.’ AAPL stock has gained almost 24% year-to-date.
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This Analyst Thinks Apple Glasses Will Be Bigger Than the iPhone
Analyst Gene Munster, who works for venture capital firm Loup Ventures, believes that Apple Inc.’s (AAPL - Free Report) rumored Apple Glasses will eventually become bigger than the iPhone.
Apple Glasses are the tech giant’s wearable augmented reality (AR) headwear in the same vein as Google’s (GOOGL - Free Report) failed Google Glass and Snap’s (SNAP - Free Report) Spectacles. These glasses would allow users to view digital content on top of the real world, including vital information that they currently rely on iPhones to provide.
Munster is guessing that Apple Glasses will be released in 2020, based on “significant resources” that the company is putting into AR (think ARKit, a platform for developers to create AR apps for iOS, and Apple’s recent SensoMotoric Instruments acquisition; SensoMotoric is a German company that makes “eye tracking” technology like glasses).
And as this new AR-based technology emerges, Munster believes Apple’s iPhone will peak in 2019 before beginning to decline. “We expect iPhone revenue to grow at 15 percent in FY18 (essential the next iPhone cycle) and account for 64% of revenue," Munster said. "We believe tough comps after the next iPhone cycle will have a negative impact on iPhone growth in FY19, and in FY20 we believe Apple Glasses will start to impact iPhone sales."
Additionally, Munster expects iPhone sales to decline 3% to 4% year-over-year between 2020 and 2022. He thinks that while the iPhone will still be present and used in people’s lives, the device will no longer make up the bulk of Apple’s annual revenue. "In 10 years, we expect the iPhone will be around, but be a much smaller part of Apple's business as Apple Glasses slowly gains market adoption,” said Muster
Investors should note that Apple has not confirmed it’s working on smart glasses, though the company has discussed in the past how it thinks AR will play an important role in technology’s future, notes CNBC.
Apple is a #3 (Hold) on the Zacks Rank, with a VGM score of ‘C.’ AAPL stock has gained almost 24% year-to-date.
Today's Stocks from Zacks' Hottest Strategies
It's hard to believe, even for us at Zacks. But while the market gained +18.8% from 2016 - Q1 2017, our top stock-picking screens have returned +157.0%, +128.0%, +97.8%, +94.7%, and +90.2%, respectively.
And this outperformance has not just been a recent phenomenon. Over the years it has been remarkably consistent. From 2000 - Q1 2017, the composite yearly average gain for these strategies has beaten the market more than 11X over. Maybe even more remarkable is the fact that we're willing to share their latest stocks with you without cost or obligation. See Them Free>>