Does This VR News Make Apple Stock a Buy for 2023? - The Motley Fool

Apple (AAPL -0.47%) could person an epic twelvemonth successful 2023. To footwear things off, it has already announced its caller M2 Pro and M2 Max chips for its perennially fashionable MacBook laptop lineup, arsenic good arsenic the reintroduced HomePod astute location speaker. And, of course, an iPhone 15 is surely coming successful the 2nd fractional of this year.

But the biggest point successful the rumor mill that could truly motorboat Apple higher is an augmented and virtual world (AR/VR, oregon simply "MR" for mixed reality) headset. Is Apple banal a bargain for 2023 up of this perchance game-changing news? 

An Apple MR headset: The long-awaited adjacent large hit?

Apple has reportedly been moving connected a mixed world headset for immoderate clip now, but speculation present holds that the institution volition big an authoritative merchandise lawsuit this spring. Bolstering the validity of this rumor past year, CEO Tim Cook spoke astir problems with "the metaverse," apt successful a selling maneuver to enactment down existing headsets connected the marketplace -- astir evidently from rival Facebook genitor Meta Platforms' Quest 2 and Quest Pro. 

An Apple MR headset volition seemingly beryllium capable to toggle betwixt real-world-view with a integer overlay and a afloat immersive virtual experience, including utilizing the headset arsenic a show for a user's Mac oregon MacBook. And, arsenic tin beryllium expected from Apple, a headset volition spell beyond conscionable integrating with different Apple hardware. The institution is besides seemingly moving with media companies similar Disney to bring 3D experiences to the MR device, and Apple TV is besides reportedly getting immoderate upgrades to enactment a much immersive viewing experience.

It's wide wherefore Apple would privation successful connected AR/VR, metaverse, Web3, oregon immoderate "next-gen" computing acquisition word you'd similar to use here. The tech assemblage is already immersed successful integer workflows, truthful making this enactment much lifelike and businesslike has existent real-world value. The kids these days besides emotion binging TV and playing video games, truthful wherefore not marque it adjacent much immersive? 

Apple besides needs a caller deed if it wants to support increasing astatine a brisk pace. After all, there's only truthful overmuch profit that tin beryllium squeezed from its existent breadwinner, the iPhone, by designing caller chips for it and for the MacBook lineup. At immoderate point, investors volition commencement demanding a caller changeable successful the limb to support the maturation motor going, and MR could beryllium conscionable the close medicine.

Data source: Apple.  

Problems earlier the contention has adjacent started?

Getting an ambitious task similar an MR headset acceptable for contention time isn't easy, though. Apple has been moving connected augmented and virtual world tech for years (Meta, to its unfair detriment, has been vilified for its transparency connected how overmuch it costs to motorboat a caller computing instrumentality ecosystem). Not each of its efforts volition wage off. Apple reportedly has shelved its AR glasses task successful lieu of focusing its efforts connected a cheaper follow-up headset to the 1 that volition (hopefully) beryllium announced this spring.  

That's astir apt a bully move, due to the fact that reports bespeak the first-gen Apple MR headset could outgo arsenic overmuch arsenic $3,000. That volition beryllium prohibitively costly for wide adoption -- particularly erstwhile the Meta Quest 2 tin beryllium had for a fewer 100 bucks, and the Meta Quest Pro MR headset has a $1,500 terms tag.  

Nevertheless, Apple has an extended ecosystem of devoted fans already utilizing iPhones, MacBooks, Watches, and more. If immoderate of those users get funny successful MR, there's a bully accidental they'll instrumentality a look astatine Apple's caller product. I expect an Apple MR instrumentality to commencement small, but it could steadily physique into a lucrative concern wrong a fewer years via headset income and related services and bundle spending.

Is Apple banal a bargain for 2023?

If you thought Apple banal was a bargain aft the company's final fiscal twelvemonth 2022 net report a fewer months ago, not overmuch has changed with the concern itself since then. The iPhone is inactive hot, particularly successful caller emerging markets. The Mac could person a large twelvemonth if it tin devour immoderate marketplace stock from struggling laptops powered by Intel and AMD. And the iPad and wearable devices similar the Watch could proceed to enactment successful dependable results. Apple is besides wildly profitable and is returning excess currency via banal buybacks. A caller mixed world instrumentality successful 2023 would beryllium gravy.

What has changed successful caller months? Share valuation has go rather a spot much tenable owed to the carnivore market. Apple present trades for 22 times trailing 12-month earnings, and 21 times trailing 12-month free currency flow, arsenic of this writing. Stay tuned for updates successful aboriginal February aft the first-quarter fiscal 2023 fiscal update. But astatine this juncture, this is inactive perfectly a fantastic concern to physique a portfolio around. Apple banal is simply a bargain successful my book.