Consumer electronics giant Apple is targeting a January announcement for its rumored mixed-reality headset, according to a renowned Apple stock analyst.
In a blog post Thursday, TF International Securities analyst Ming-Chi Kuo said Apple will reveal the headset at the start of 2023. He called the device a potential "game changer for the headset industry."
Apple's first computer headset will be for mixed-reality experiences, which combine elements of virtual reality and augmented reality, he said. It will feature a wearable display that simulates a see-through screen using forward-facing cameras.
Kuo believes Apple will begin taking orders for the new headset in second quarter 2023. It probably will hit store shelves before the company's next Worldwide Developers Conference in June 2023, he said in a Twitter thread.
New Product Could Lift Apple Stock
The mixed-reality headset is "the most complicated product Apple has ever designed," Kuo said. It will benefit a number of component suppliers in Apple's supply chain, he noted.
Apple stock and shares of its suppliers could be re-rated in the next two to three years if the product is successful, Kuo said.
Kuo's report comes as Apple Chief Executive Tim Cook continues to drop hints about a headset in the works. In a recent interview with a Chinese news outlet, Cook told people to "stay tuned" when asked what the company has planned next for augmented reality. Apple currently supports augmented-reality applications on the iPhone and iPad.
"I am incredibly excited about AR as you might know," Cook told China Daily. "And the critical thing to any technology, including AR, is putting humanity at the center of it and that is what we focus on every day."
He added, "I could not be more excited about the opportunities in the space. Sort of stay tuned, and you will see what we have to offer."
Apple Stock Has So-So Composite Rating
On the stock market today, Apple stock rose 2.5% to 141.66. On June 16, Apple stock hit a one-year low of 129.04. It notched its all-time high of 182.94 on Jan. 4.
Meanwhile, the industry leader in visual headsets, Facebook parent Meta Platforms, is slowing down its investments in the space.
"One of the keys to the VR industry's rapid growth in the past two to three years is Meta sold VR headsets at a loss and aggressively promoted its VR business," Kuo said. But with its core advertising business weakening, Meta is focusing on shoring up its bottom line, he said.
"Meta sells VR headsets at a loss and uses the price advantage to gain a high market share, but this strategy is unsustainable," Kuo said.
Other companies "worthy of attention" in the AR/VR headset space include Microsoft, Sony, Taiwan's HTC and China's Pico, Kuo said.
Apple stock has a mediocre IBD Composite Rating of 71 out of 99, according to IBD Stock Checkup. IBD's Composite Rating is a blend of key fundamental and technical metrics to help investors gauge a stock's strengths. The best growth stocks have a Composite Rating of 90 or better.
Follow Patrick Seitz on Twitter at @IBD_PSeitz for more stories on consumer technology, software and semiconductor stocks.
