Apple Inc AAPL shares are on an icy toboggan ride heading into the end of the year, but 2023 is packed with a series of potential growth catalysts for the Cupertino-based company.
What To Know: Wednesday on CNBC's "Squawk Box," Steve Kovach, a tech correspondent for CNBC who covers Apple, laid out a handful of potential catalysts for the iPhone maker in the new year. The first? The fintech space.
"Apple is expected to launch its buy now, pay later service called Apple Pay Later," Kovach said.
The service is expected to compete with several other delayed payment services, including Affirm Holdings Inc AFRM.
Apple also planned to beef up its fintech offerings by launching high-yield savings accounts for Apple Card customers, he said.
Kovach told CNBC advertising was another area to watch in 2023. Apple expanded its ad choices in its App Store this year and planned to widen its advertising base to other platforms such as Apple Maps and Apple TV+.
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On the hardware side of the business, people will pay close attention to iPhone deliveries following delayed shipments in the current quarter. But the real catalyst could come in the second half of 2023 when Apple was expected to launch its long-awaited AR/VR device.
"That would make it the first major new product since the Apple Watch launched back in 2015," Kovach said.
The augmented reality device was expected to directly compete with Meta Platforms Inc META, he added.
"Tim Cook and company will have to make a compelling case for the device that Meta has failed to do so far," he said.
Apple could be set up for a strong year, but Kovach noted some potential headwinds include declining App Store spending and a strong U.S. dollar, which hurts the tech giant's services business.
AAPL Price Action: Apple has a 52-week high of $182.94. It's making new 52-week lows on Wednesday.
Apple shares are down 1.57% at $127.90 at time of publication, according to Benzinga Pro.
Photo: Courtesy of Apple
© 2024 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.
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