NEW YORK. Apple Inc is growing the metaverse business by expanding the company’s augmented reality (AR) applications. The move prompted a strong investor response to the company’s shares.
Moreover, Apple already has 14,000 AR applications in its App Store citing Reuters on Friday (28/1). Apple’s Chief Executive Officer (CEO) Tim Cook suggested this number would increase with further investment.
“We see a lot of potential in this area and will invest according to the potential,” Cook said.
Apple analysts Ming-Chi Kuo and Bloomberg have reported that Apple plans to introduce AR headsets this year or next year, after which it will be applied to eyewear products. However, Apple has not publicly acknowledged this plan.
Apple’s services revenue jumped 24 percent to $19.5 billion in the holiday quarter that just ended. This achievement exceeded analyst estimates of US $ 18.6 billion.
Apple was able to add 785 million subscribers to several paid services such as streaming music and playing games. This achievement increased from 620 million last year and 745 million in the last quarter.
Cook said that Apple’s research and development efforts are focused on the intersection of hardware, software and services.
“That’s where the magic really happens. There’s a fair amount of investment going into things that aren’t in the market right now,” said Cook.
AR devices can open up many opportunities to grow subscriptions. Existing offerings for fitness workouts and video content can be made even more engaging through immersive AR experiences.
And as customer and service growth grew, Apple’s gross profit margin soared above 40%, drawing praise from analysts.
Metaverse-related services, such as AR apps, could reverse Apple’s revenue mix, said analyst Neil Shah of Counterpoint Research.
“There are significant gains for Apple’s services business that could potentially cross the iPhone in the next five years,” said Shah.