Augmented reality could be an $8 billion 'revenue opportunity' for Apple — estimate

Apple‘s move into augmented reality could boost iPhone and App Store sales, resulting in as much as $8 billion in revenue for the tech giant, according to Bank of America Merrill Lynch.

Pokemon Go video game, which let users chase video game characters projected on their phone screens throughout city streets and other public areas.

Mohan says the “revenue opportunity” is for $6 billion to $8 billion in additional revenue from now until 2020 with $1 billion of that coming from AR apps and the rest coming from increased iPhone sales due to the new technology. If Apple were to introduce AR-specific eye wear, which is not factored into the bank current model, the revenue upside could be as much as $11 billion, he said.

More than 1 billion Apple devices are already equipped for augmented reality apps, which Mohan said makes iOS a logical and xtremely attractiveoption for those developers.

It’s not just video game-makers capitalizing on AR. The Bank of America analyst highlighted retailers like Lowes and Home Depot already using AR to help customers picture how countertops, floors, blinds or paint might look in their houses before buying them. The technology can also be used to market hotels and travel experiences, Mohan said.

Apple began shipping its first set of tools for developers to build augmented-reality apps on iPhones and iPads, known as the ARKit, last fall. Apple third version, the ARKit2, was released early June. Google is also working on AR and released its own kit for developers called ARCore around the same time as Apple.

source : www.cnbc.com