Apple Weaker After Launch Event, Despite ‘AirTag’ Welcome

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Investing.com – Apple (NASDAQ:AAPL) shares were a shade weaker in Wednesday’s premarket, hours after the company unveiled its new line-up comprising colorful iMacs and a new iPad Pro hosting its M1 chip.

But it was the company’s latest gadget, ‘AirTag’, that caught Raymond James analyst Chris Caso’s fancy, who said it could be “a several billion-dollar revenue opportunity”.  

AirTag is an accessory that once attached to an item, helps keep track of and locate objects that are prone to being misplaced, the usual keys and wallets.

Whether attached to a handbag, keys, backpack, or other items, AirTag will work with Apple’s ‘Find My app’ and ‘Find My network’ ecosystem to help locate a lost item, all while keeping location data private and anonymous with end-to-end encryption.

Caso sought to compare AirTag with AirPod, saying that at $30, if the former were to sell at a similar unit volume, it would put annual AirTag revenue at $2 billion–$2.5 billion.

“But it’s certainly reasonable that AirTags would sell at a much higher unit volume vs AirPods, since users would likely buy more than one (tagging ones wallet and keys, for example),” he wrote in his note.