Katy Huberty, a Morgan Stanley analyst has come out with a 49-page document on Apple’s “augmented reality.” Huberty has upped Apple’s price target from $205 to $253, with the conclusion that Apple’s services revenue will reach $9 billion in three years.
Since Huberty’s rating on Apple shares has risen, she believes that the release of the “ARKit” software tools gives Apple an advantage.
We believe ARKit completes the Apple software and hardware ecosystem and gives Apple a significant first mover advantage. With the launch of ARKit, Apple now controls both the hardware upon which AR applications can be run and the software platform for which the third-party applications can be created. As a result, we expect much more widespread adoption of AR on the iOS system vs. Google Tango and ARCore (at first) as developers realize the poten- tial for broad distribution across the iOS platform.
The AR market will reach $40 billion in the next three years with increased device and software sales.
Apple is having a media event on its Cupertino campus today, and will be broadcasting it at 1 pm ET.