While Apple Inc. AAPL experiences a vapid period in its product cycle, the downtime gives analysts the opportunity to assess the company’s future trajectory.
Oppenheimer, providing investors its yearly predictions on Apple’s future innovation plans, said, “We expect depth sensing and contextual-aware features will be the most significant driving forces for future Apple designs, which may kindle new growth as the mobile market matures.”
With the company’s huge dependence on the iPhone — 80 percent of Apple's revenues derive from the device — Oppenheimer looks toward homes as the greatest opportunity for Apple moving forward.
The Tech Home: The Latest Frontier
“We continue to believe the home is the most important ecosystem for Apple to fend off its competition (even more so than automotive). The home represents a space where alternative interfaces (voice) work better than a mobile device. And a more open ecosystem like Amazon.com, Inc. AMZN Alexa fits better in the home,” added Oppenheimer.
It is no secret the biggest catalyst for Apple investors will rest on the iPhone 8 release in September. Apple’s dependence on the iPhone and the softening mobile market has Oppenheimer asking what’s next.
“We expect market-moving changes to take place whenever user interface sees major changes. We believe we are at the very beginning of one such change: the shift to contextual computing,” concluded Oppenheimer.
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