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Apple Reality Likely Will Be A 'Sell The News' Event

Jun. 01, 2023 2:39 AM ETApple Inc. (AAPL)52 Comments
Ash Anderson profile picture
Ash Anderson


  • Apple's upcoming first-generation mixed reality device, Apple Reality, may not meet high expectations, potentially causing a near-term "sell the news" scenario for the company.
  • Despite potential short-term skepticism, long-term faith in Apple's performance and innovation remains strong, with the company's future products poised to continue defying critics.
  • I expect the headset to generate around $2.5B in revenue and $750M in gross income in 2024, but the real game-changer will be its evolution into a mass-market product, possibly replacing the iPhone by the end of the decade.
Teenage girl playing using VR glasses at home

FG Trade

Apple’s (NASDAQ:AAPL) foray into the realm of Virtual Reality has been a significant point of discourse. As an analyst covering Apple for numerous years and a long-term investor, I confess I have a bit of a bias towards seeing Apple perform

This article was written by

Ash Anderson profile picture
I am a Software Engineer by trade and an avid market participant. Traditionally a long-only investor, I use home-grown software to find the best companies at the best prices. My investment philosophy is primarily high-quality firms. Firms that hold a significant advantage in their market, or demonstrate the ability to get to the peak. Software is my area of expertise, so my writing will frequently cover those in that sector. I also cover stocks that I consider to be high-quality, and investable that are outside the software world.Fans of video, please check out my YouTube channel where I also cover finance and stock research at youtube.com/ashanderson1

Analyst’s Disclosure: I/we have a beneficial long position in the shares of AAPL,META either through stock ownership, options, or other derivatives. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article.

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Comments (52)

SEC Investigator2 profile picture
If you are holding shares since Jan 3, 2022, you have made ZERO $$$, let me repeat that, If you are holding shares since Jan 3, 2022, you have made ZERO $$$. Except for the paltry, embarrassing, .50% divy. You better hope these goggles are it, otherwise look over a palisades cliff.
TechIRM profile picture
@SEC Investigator2 *$3,000 goggles
TechIRM profile picture
1.1 billion total sale in US for VR headsets (CNBC tech, Jonathan V, 12/2022). And you think Apple alone will do 2.5B by itself? First year. That a pretty ambitious outlook.
SEC Investigator2 profile picture
10M shares traded in 12 mins as someone with a ton of money holding 10's of thousand of $180 CALLS fought off the option manipulator.
SEC Investigator2 profile picture
Apple should be up at least $5 today. It is being intentionally held down because it's option expiration Fryday. And those juicy $180.00's options have tremendous volume. Expect a $180 or below close. Ever hear of that song wipeout?
We know nothing about the headset. I anticipate an iPhone introduction like audience response when its first shown and described. This ain't going to be a Meta Quest 3 equivalent. I expect the optical and audio performance to blow us away. I have no idea how many they will sell but I do expect Apple to introduce a better mousetrap. Can't wait to see what the team has "cooked" up.
GameBuzz profile picture
@astout1000 Props just for the pun!
FSB: The Russian Federation announced a ban on Apple phones for all "government" positions due to active spyware suspicions.
The internet is full of crank video showing destruction of Apple devices by some typical ham handed public means. Typical for that obedient society.
It is worthy to note that paranoid RF state agency FSB is now suddenly suspicious of spying by others as active bombing attacks inside the capital increase and RF media rumors of a government coup grow louder.
No Guilt profile picture

Do you think Americans should ban Huawei? Is that crank paranoid for an obedient society?

Wait wait wait, why use anything Chinese anyway because they just copy and it’s inferior tech right?
How do those who propose AR glasses will replace smartphones, imagine users will control the UI? Hands swiping away in the air in public? Voice control in public? Catatonically staring in space and using eye gaze tracking and blinking to interact? Mind implant?
Ash Anderson profile picture
@Sconnie Fella realistically, gesture control from the Watch on the wrist, or eye tracking. Both feasible today, and will be honed over time.
TechIRM profile picture
@Ash Anderson Okay but where is the value? Pay phones sucked. Enter cell phones. Books, obvious. Enter internet/search engines. What problem are VR/AR headsets fixing? ....btw VR sales are down.
smadadet profile picture
When the lawsuits from people injured while wearing these headsets start coming in, the stock will tank.
@smadadet what sort of injuries are you anticipating? is this the case with other brands of these devices... META, Occulus etc, what has happened with those to give concerns?
@smadadet lol You’ve reached a new low Smadadet. As for new “Highs”…seen AAPL PPS lately?
@smadadet Wet blanket
"I expect the headset to generate around $2.5B in revenue and $750M in gross income in 2024, but the real game-changer will be its evolution into a mass-market product, possibly replacing the iPhone by the end of the decade."

I have previously posited that the new AR device will eventually replace/augment the iPhone. Furthermore, once the commercial possibilities become reality and applications are developed for everything, incorporating AI, AAPL will once again see a robust, continued growth cycle like the one brought about by the introduction of the iPhone.

AAPL ... stay long and prosper !
Ash Anderson profile picture
@TPizback definitely seems like a natural progression of things. Watch/AR will be the common combo 10 years from now.
TechIRM profile picture
@Ash Anderson This is NOT new technology. They had VR headsets in the 90s. I'm missing what will make this so different.
" I'm missing what will make this so different."

My guess would be AAPL, quality, network, support, App Store, in other words, built in infrastructure.
It-is-What-It-is profile picture
If AAPL only supported two device[s] they would be fine.

Using only the Card and the Bank would set them apart from most of the rest.

Accumulate Always and never Sell unless you don't want to increase your Net Worth.
‘Simply, I posit that this device may not entirely uphold the "flawless Apple" image Speculators have come to associate with the company.’….fixed it.
Ash Anderson profile picture
@Blowback2 fair. Those speculators do control short term prices though.
Vr replacing the iPhone? Have you guys used these headsets? The tech is cool, but they couldn’t replace Xbox if they tried, the market and depth of awe isn’t anywhere close to mass acceptance.
@Legitimate First VR-set. Then soon AR+tethered glasses. Then no tether.
@fredrik2109 Yup. Precisely why Tim Cook is rushing out Apple’s headset and why he is so paranoid of Meta. Meta currently has the number one VR headset and growing popularity. Bye bye iPhone.
@BigEarn, no one at Apple is paranoid of anything from Meta. That entire division has been a colossal investment failure. Meta reported $13.7 billion in operating losses for Reality Labs for 2022, more than the already jaw-dropping $10.2 billion it sunk into the division in 2021.
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