Apple's developer conference WWDC 2023 has everyone intrigued as the company is set to reveal a whole new product segment. Supply chain analyst Ming-Chi Kuo, who has had a very good track record with predictions around Apple, has revealed that investors are displaying a greater interest in potential artificial intelligence (AI) announcements compared to the tech giant's rumored augmented reality (AR) headset.
Kuo suggests that Apple's headset may not contribute substantially to revenue and profits for suppliers in the next two years, highlighting the significance investors place on AI advancements.
Investor Focus on AI Services
Kuo claims that recent investor sentiments indicate a higher level of interest in when Apple will launch AI services similar to ChatGPT, rather than the AR/MR headset device itself. This shift in focus underscores the significance investors attach to AI-related developments in driving investment sentiment.
Kuo's recent discussions with investors reveal that if Apple's AR/MR (Mixed Reality) headset announcement proves to be successful, there will be a massive impact on 3D Interaction Design and Computer Graphics. This parallels the impact AI and AI-driven systems, such as ChatGPT, have had on the AI/AIGC landscape.
If Apple unveils its AI and AIGC services at WWDC, investors anticipate a positive impact on the ongoing AI investment sentiment, said Kuo in a tweet. Furthermore, if the AI services require higher hardware specifications, this could potentially generate increased demand for hardware replacements.
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Integration of AI with Apple AR/MR Headset
According to Kuo, in the long run, one of the crucial factors determining the success of Apple's AR/MR headset will be its ability to seamlessly integrate with AI and AIGC technologies. Investors recognize the potential synergies between AR/MR and AI, highlighting the importance of such integration for market success.
Limited Enthusiasm for AR/MR Headset: Investors appear to be less enthusiastic about Apple's AR/MR headset device, recognizing that it may not significantly contribute to revenue and profit for suppliers over the next two years. This perspective is influenced, in part, by Nvidia's better-than-expected Q2 guidance, which has shifted attention toward AI-related opportunities.
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Beat Market Expectations for Positive Outcomes
Kuo claims that if Apple's AR/MR headset device announcement exceeds market expectations, combined with new iPhone, Apple Watch, and Mac shipments that drive revenues and profits in the second half of 2023, it could still benefit Apple and key supplier stocks.