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Macquarie's Schachter: Apple Inc. Will Let Others Have First-Mover VR Advantage Before Moving Into Industry

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Apple Inc. (NASDAQ: AAPL)'s connection with the virtual reality space is a hotly debated topic. Piper Jaffray's Gene Munster, speaking to Benzinga, said last week he believed the company would get into "mixed reality," a phenomenon that combines VR with wearables.

"The screen, as you know, it goes away and we start to have wearables," he said at the time.

On Monday, Macquarie's Ben Schachter discussed the issue too on CNBC.

"Apple clearly has to be aware of it, and clearly has to understand if it's going to be the next big platform," the analyst said.

"You're going to see a lot of products...in this area over the next 6 months or so," he said. Schachter added that he thinks Apple will let others have the first-mover advantage before jumping in.

"You can see the scenario where your iPhone would snap into something and cover your eyes [where you'd then] be able to see the augmented reality or virtual reality through that device."

Schachter said VR is "early," adding that over the long-term this "could be the next big platform," which could move the needle if Apple is able to have a strong foothold. "Apple certainly has the capital to do whatever they need to do," but emphasized, "the talent is going to be key."

Most analysts don't factor VR business into Apple's current valuation, but it's still an area long-term investors should keep an eye on.

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DateFirmActionFromTo
Mar 2017NeedhamDowngradesStrong BuyBuy
Mar 2017NomuraMaintainsBuy
Mar 2017BernsteinMaintainsOutperformOutperform

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Posted-In: Apple Ben Schachter MacquarieAnalyst Color CNBC Analyst Ratings Tech Media

 

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