iPhone manufacturer Apple Inc. (AAPL) has reportedly delayed the launch of its much-awaited virtual reality (VR) headset until 2023, according to Bloomberg. Shares of the tech giant closed at $173.07 on January 14.
VR Headset Launch Delayed
Though Apple has never once publicly stated that it is working on a VR headset, news has been abuzz of how it would change the tech giant’s future growth trajectory.
According to the report, the VR headset would provide a virtual reality experience to users on a high-resolution screen. The headset could cost users over $1,000, as suggested by a few reports. The VR headset will be a perfect entry into the buzzing metaverse segment and create a new revenue-generating product category for the company.
Reportedly, the Technology Development Group which is working on the product, is facing issues related to overheating, cameras and software. Apple is mulling on delaying the launch due to these reasons.
The product is expected to be launched at Apple’s Worldwide Developers Conference 2023.
A delay by the company is viewed by some as a potential headwind to the growing hype around the metaverse, as competitors are trying to ace the game with the first movers’ advantage.
In anticipation of a solid first-quarter performance in terms of both number of iPhones sold and average selling prices in fiscal 2022, Loop Capital Markets analyst Ananda Baruah lifted the price target on the stock to $210 (21.3% upside potential) from $165, while maintaining a Buy rating.
Apple’s upcoming earnings for Q1FY22 are scheduled for January 27, 2022. Wall Street analysts are highly optimistic about the company outpacing consensus estimates. Baruah estimates Q1 iPhone deliveries to be between 84 million and 85 million units and revenue of $122 billion and earnings of $1.95 per share.
Overall, the stock commands a Strong Buy consensus rating based on 22 Buys, 4 Holds, and 1 Sell. The average Apple price target of $179.42 implies 3.7% upside potential to current levels. Shares have gained 37% over the past year.
TipRanks’ News Sentiment and Media Buzz Analysis shows the combined News Score based on AAPL’s News Sentiment and Media Buzz.
TipRanks data shows that the News Score for Apple is currently Positive based on 313 articles published over the past seven days. 79% of the articles have a Bullish Sentiment compared to a sector average of 64%, while 21% of the articles have a Bearish Sentiment compared to a sector average of 36%.
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