Apple’s Game-Changing WWDC: Anticipation for MR Headset
24 May 2023
BofA Analysts Anticipate Apple’s Game-Changing Worldwide Developers Conference with Unveiling of Mixed Reality Headset.
Bank of America (BofA) analysts have set high expectations for Apple’s upcoming Worldwide Developers Conference (WWDC), suggesting that the event could be a game-changer for the tech giant. While anticipating updates to various operating systems, analysts are particularly excited about the potential unveiling of Apple’s Mixed Reality (MR) headset. They believe that this MR headset has the transformative power to disrupt existing markets and create new ones, similar to the success of AirPods. In their analysis, they discuss the challenges faced by the AR/VR market, the transitory enthusiasm surrounding the Metaverse, and the long-term potential of the MR headset.
I. The Anticipation for a Game-Changing WWDC A. BofA analysts’ Neutral rating and $176 price target on Apple B. Expectations for updates to iOS, iPadOS, macOS, watchOS, and tvOS C. Focus on the potential game-changing impact of the MR headset
II. Apple’s Track Record of Market Disruption A. Apple’s history of inventing new categories and disrupting existing markets B. Examples of successful disruptive products like AirPods C. The potential for the MR headset to follow a similar path
III. Overcoming Challenges in the AR/VR Market A. Lackluster uptake of the AR/VR market and lessons learned B. Transitory enthusiasm surrounding the Metaverse C. Apple’s ability to navigate these challenges with innovative solutions
IV. The Transformative Potential of the MR Headset A. Anticipated improvements in future iterations of the MR headset B. Lower cost, increased speed, and expanded use cases over time C. Projected impact on software and service revenues
V. Modest Uptake with Substantial Upside A. Initial uptake forecasted to be relatively modest in 2023 B. Potential for a Hardware/Software revenue ratio of 2x or higher C. MR headset’s contribution to app store revenues by 2026
As Apple’s WWDC approaches, BofA analysts foresee the event as a potential game-changer, mainly due to the expected unveiling of a Mixed Reality (MR) headset. They highlight Apple’s track record of inventing new categories and disrupting markets, emphasizing the transformative potential of the MR headset. While acknowledging the challenges faced by the AR/VR market and the transitory nature of Metaverse enthusiasm, the analysts believe that Apple’s ability to innovate and create immersive experiences could lead to a substantial upside in software and service revenues. Although they anticipate a modest initial uptake, they project that the MR headset could eventually contribute significantly to Apple’s app store revenues in the coming years.