As the countdown for Apple Inc.’s AAPL annual WWDC begins, a renowned analyst stated that artificial intelligence is more important for investors than the tech giant’s highly anticipated mixed reality headset.
What Happened: With the WWDC keynote just around the corner, Ming-Chi Kuo, a notable analyst at TF International Securities, said that investors are actually more intrigued by Apple’s AI-related initiatives than its AR/VR headset.
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In a recent tweet, Kuo shared insights from discussions with investors regarding the upcoming WWDC event.
“Investors are less interested in Apple’s AR/MR headset device, which may not be a substantial revenue and profit contributor for suppliers in the next two years compared to AI, after Nvidia’s marked better-than-expected Q2 guidance,” Ming said.
“However, if the announcement of Apple’s AR/MR headset device can significantly beat market expectations, coupled with new iPhone, Apple Watch, and Mac shipments that boost revenues and profits in 2H23, it could still benefit Apple and key supplier stocks.”
He said that while the headset announcement could significantly impact areas such as 3D interaction design and computer graphics, investors are showing greater interest in Apple’s AI-related endeavors, particularly in the development of chatGPT-like services.
According to Kuo, the headset’s success could hinge on its ability to integrate seamlessly with AI and AI-generated content.
There is a possibility for Apple to unveil AI or AIGC services during WWDC, which could further fuel the existing momentum in AI investments, stated Kuo.
Why It’s Important: While Apple co-founder Steve Wozniak has repeatedly raised concerns about the swift advancement in the AI field, CEO Tim Cook expressed interest in generative AI — although he emphasized that the company would approach the matter with careful consideration and thoughtfulness.
It was previously reported that the Cupertino, California-based tech giant is developing its own generative AI products. It has also apparently launched an extensive search for skilled professionals in the field of generative AI.
On the flip side, although people have questioned whether Apple’s headset would be worth its estimated price of $3000, the company has been developing the device for the last seven years.
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Read Next: Is Apple’s VR/AR Headset Safe For You? Health Conditions That May Pose Risks
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