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The note previewed Apple’s keynote presentation at its Worldwide Developers Conference (WWDC) on June 5.
The analysts, who have a Buy rating and $209 price target on the tech giant’s shares, said that although they recognize the AR/VR industry as a whole has been disappointing, Apple headset’s points of differentiation, compared to competing headset manufacturers, are what give it the potential to succeed.
They explained that the points are “an installed base of billions of device and services users, an established developer ecosystem for iOS/iPadOS/macOS, existing 1P content investments and apps that can be leveraged for AR/VR, a direct in-store and online sales model — which is vital for introducing consumers to a relatively new consumer product category — and ecosystem benefits.”
The firm believes that Apple’s headset and related services “could contribute $11-$20 bn of annual revenue from F2024-28 and LSD% accretion to net income starting in F2025.”
Looking at other aspects of the presentation, the analysts stated that Apple’s operating system improvements should help to strengthen the company’s ecosystem and minimize installed base churn, while the new MacBooks could help to catalyze an upgrade cycle.
