Apple Is Building A Virtual Reality Supply Chain With Disuptive Potential, New Research Shows

• Apple Inc. AAPL has seen a 6.46 percent increase in its share price year-to-date, although the shares are currently trading materially below their 52-week high.
• Credit Agricole’s Skye Chen mentioned that the company’s Force Touch technology might have been underestimated, given that it is likely to become a “transitional technology in future virtual reality applications.

According to the Credit Agricole report, “Haptic technology’s various vibration modes can simulate haptic sensations on human skin, which are felt through different frequencies.”

Analyst Skye Chen believes that all iDevices would be Force Touch-ready by 2017, while demand for related components would grow at a CAGR of 56 percent during 2015-2017. The technology is also expected to be adopted for the MacBook keyboard by 2017.

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“Apple has spent a significant amount of time and monetary resources developing Force Touch technology and is readying its supply chain for VR technology,” Chen stated.

Chen also mentioned that the technology had evolved to enable human-machine interface, such that a virtual reality experience can be created. Although VR is currently being used for gaming, Chen expects Force Touch to enable users in the future to feel objects that appear on their smartphone.

“Apple is in the leading position for VR products in devices,” the report said, while adding, “In the next two to three years, users will be able to experience VR through their iDevices. By that time, Apple will have built up a comprehensive supply chain.”