Apple Inc. (NASDAQ:AAPL) shares reached a record of $348.15 on Tuesday following the announcement of a home hardware lineup, before pulling back to close at $341.27.
Deepwater Asset Management’s Gene Munster stated the devices show Apple’s “product velocity is increasing,” but the strategy “misses the mark” on the artificial intelligence sector.
The Home View Unveiling
Apple introduced the Home View, a $299 display with a 7-inch screen designed to connect home accessories, email, and messaging. The launch is part of a broader ecosystem push that includes a $299 Apple TV with a remote-finding feature and a “Home Collection” of third-party accessories like locks and cameras.
Munster estimated Apple will sell around four million Home View devices. He projected this will add $1.5 billion to the company’s expected $525 billion revenue for fiscal 2027. He characterized this as an “incremental” gain, stating it would add roughly 1% to Apple’s total revenue.
The Generative AI Opportunity
Despite the hardware expansion, Munster cautioned that Apple is overlooking the larger shift toward generative AI. Speaking on the Pressure Points podcast, he argued that consumers face too much “friction” integrating smart home devices.
“I don’t think people are quite ready for that,” Munster said. “I think they’re ready for a lot of generative AI. I think they’re really ready for bots, for specialized bots.”
He concluded that the Home View “misses the mark, I think, relative to what the biggest opportunity is in consumer tech, which is around these personalized bots.”
Munster previously warned that Apple risks getting “boxed out of the services upside” if consumers lock into competitor AI workflows, such as Meta Platforms Inc.’s (NASDAQ:META) Muse or Space Exploration Technologies Corp.‘s (NASDAQ:SPCX) Grokbot, at $20 a month.
Smartphone Demand
The stock’s intraday record also coincided with reports of increasing demand for Apple’s upcoming foldable smartphone, the iPhone Duo. Apple reportedly increased supply chain orders for the device by 30%, taking initial supply estimates to 10 million units ahead of Oct. 16 preorders.
How Has AAPL Performed in 2026?
The stock was 0.44% higher in premarket trading on Wednesday. It was higher by 37.80% over the last year, up 25.35% year-to-date, and by 2.71% over the last month. The stock closed up 0.09% at $341.27 on Tuesday.
Benzinga’s Edge Stock Rankings indicate that AAPL maintains a strong price trend in the short, medium, and long terms, with a moderate growth score.
Disclaimer: This content was partially produced with the help of AI tools and was reviewed and published by Benzinga editors.
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