Apple (AAPL) is likely to launch its VR headset in early 2023

Apple (AAPL) is likely to launch its VR headset in early 2023

Apple AAPL is expected to launch its long-awaited virtual reality headsets in the second quarter of 2023. Per analyst Ming-Chi KuoThe VR headset will be launched a little later than originally expected due to the Shanghai lock that interrupts its development.

Many different vendors are preparing to take a significant share in Apple’s new venture to delve into AR. Apple is expected to use Sonys SONY MicroOLED display for the first devices to be produced, per 9to5Mac.

Apple has been working with Sony for a couple of years to develop the screen that will have high image quality in a small and light design. However, another company competing for this place is LG Display. LG Display is expected to have ordered disposal equipment to manufacture MicroOLED screens from Sunic System. This will help LG Display manufacture the MicroOLED panel for Apple’s VR headsets.

Apple’s mixed reality headset is the most anticipated product expected to help the company diversify its revenue streams. This is expected to have a positive effect on Apple’s share price in the long term.

Apple Inc. Price and Consensus

Apple Inc. Price and Consensus

Apple Inc. Price Consensus Chart | Apple Inc. Quote

What awaits Apple shares in 2022?

Apple’s revenue-generating capabilities have been negatively impacted due to supply chain disruptions caused by coronavirus, silicon shortages in the industry and the ongoing conflict between Russia and Ukraine.

In addition, Apple did not provide a revenue guidance for the third quarter of the 2022 fiscal year due to uncertainty created by macroeconomic volatility and geopolitical tensions.

Apple expects that covid-induced supply chain outages and the shortage of silicon across the industry will hurt sales growth by $ 4-8 billion. Unfavorable currency is also expected to hurt revenues by 300 basis points (bps).

Apple has stopped operations in Russia, which is expected to hurt sales growth. Due to rising global inflation, customers have also withdrawn from their purchases. This will negatively affect Apple’s shares, as it did for its FAAMG peers – Meta-platforms META and Microsoft (MSFT).

Apple, which currently holds Zacks Rank # 3 (Hold), has seen its stock drop 25.7% over the period compared to Zacks Computer – Mini computers industry and Zacks Computer and technology sectors declines of 25.2% and 32.2% respectively. You can see the complete list of today’s Zacks # 1 Rank (strong buy) shares here.

Meta has also seen its stock drop 50.9% over the period so far compared to Zacks Internet Software industry decline of 53.4%.

Microsoft shares have lost 27.7% during the period so far compared to Zacks Computer software industry decline of 29.8%.

But when Apple enters the AR space, solid expectations for the company’s mixed reality headsets and AR glasses are expected to drive demand for the products. Per Bloombergthe global metaverse market, is expected to reach $ 800 billion by 2024, which will create an alternative source of revenue for Apple, thereby positively impacting shareholders’ wealth creation.

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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.


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