Analyst sees Apple's AR smartglasses becoming bigger than Apple Watch, just as big as the iPad
![Earlier this year, a patent application filed by Apple included this sketch of what Apple's smartglasses might look like from the wearer's point of view - Analyst sees Apple's AR smartglasses becoming bigger than Apple Watch, just as big as the iPad](https://m-cdn.phonearena.com/images/articles/298945-image/ara.jpg)
Earlier this year, a patent application filed by Apple included this sketch of what Apple's smartglasses might look like from the wearer's point of view
Earlier this year, we passed along some comments from former analyst Gene Munster, who claimed that Apple iPhone sales will peak in 2019 with Apple's smartglasses launching the following year. At that point, Munster sees the iPhone getting replaced by the AR powered glasses as the biggest selling product in Apple's lineup. Another analyst, Bernstein's Toni Sacconaghi, wrote a note to clients stating that as much as Tim Cook loves AR, it won't impact Apple's bottom line until the company produces a pair of smartglasses.
The analyst says that AR works better on smartglasses than on smartphones. And for Apple, he sees three reasons why Apple Glasses makes sense. One, smartglasses have the potential to be a very big market. Two, Apple has the money available to invest in the technology, and Apple can also invest in a follow-up market that can sell software and services for such a device.
"Smartglasses could potentially generate tens of billions of dollars in annual hardware sales for Apple. Comparing it to Apple's last blockbuster product launch, the iPad, we believe that smartglasses could have just as wide (if not wider) appeal over time. Assuming a $500 ASP23 and an annual adoption rate of 2% in Year 1, ramping up to 5% by Year 3,24 we estimate that Apple smartglasses could generate over ~$25B in annual hardware sales within 3 years of release, with minimal cannibalization of other Apple products.25 26 Apple would subsequently take a majority of profits within the resulting market for smartglasses, just as the iPhone, iPad, and Apple Watch have done so in their own respective markets."-Toni Sacconaghi, analyst, Bernstein
source: Barron's via BGR
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