In Brief:
- Apple’s stock price jumped after CEO Tim Cook revealed the company’s metaverse ambitions.
- The efforts are focused on the intersection of software, hardware, and services.
- The company has 14,000 AR apps, and it plans to increase this number with further investment.
The stock price of Apple jumped following CEO Tim Cook’s announcement of the company’s fresh efforts to develop augmented reality (AR) apps. The company currently has 14,000 AR apps on its App Store, and Cook believes this number will increase with further investment.
He also said that the company sees a lot of potential in the Metaverse space and is investing accordingly. Apple analyst Ming-Kuo has reported Apple plans to launch an AR headset by this or next year with glasses to follow later.
Soon after Tim Cook revealed the company’s metaverse ambition, the stock price rose nearly 5% in after-hours trade, prompting strong investor response. He also stated that the company is focused on exploring new and emerging technologies as it is a very interesting concept to adopt.
Apple’s services revenue increased by 24% to $19.5 billion in the just-ended holiday quarter, slightly above analysts’ estimates of $18.6 billion. The company added 785 subscribers to its paid services such as playing games and streaming music.
With this initiative, Apple intends to combine hardware, software, and services. As Cook says, “That’s where the magic really happens.” According to him, the company is making a significant investment into things that are not on the market at this point.
An AR device could open numerous opportunities to grow subscriptions. Moreover, existing services such as fitness workouts and video content could attract more people through immersive AR experiences as well.
Microsoft is also taking steps into the metaverse and planning an update to its Teams and Xbox gaming console services. It is also preparing to launch its new product named “Dynamics 365 Connected Spaces.”
While these leading tech companies were strategizing their next move into the metaverse space, Meta lured around 100 experienced employees who were formerly working on developing Microsoft’s HoloLens augmented-reality headsets.
Seeing the current scenario and competition, Apple has offered lucrative bonuses to hold onto their employees. Nevertheless, the company’s newest plans have the potential to place it at the forefront of Metaverse space.
