Apple Inc. (NASDAQ:AAPL) – Why Analyst Sees AirTags As A $10B Alternative For Apple

Apple Inc (NASDAQ: AAPL) unveiled its Bluetooth trackers dubbed “AirTags” on Tuesday at its “Spring Loaded” digital occasion. The product represents a $10 billion alternative for Apple, in response to Raymond James & Associates.

The Apple Analyst: Raymond James analyst Chris Caso has an Outperform 2 ranking on the Cupertino, California-based tech big with a value goal of $160.

The Apple Thesis: Caso mentioned that AirTags are akin to AirPods by way of potential development for the Tim Cook dinner-led firm as they might strengthen its ecosystem and encourage upgrades.

“We imagine this product class can have very broad attraction (who would not pay $30 to not lose your pockets?), and as such might develop to turn out to be a $10 billion alternative,” wrote Caso in a word Tuesday.

In Raymond James’ estimate, AirPods promote with an annual quantity of practically 70-80 million models.

“At $30 per Air Tag (or $99 for 4), if Air Tags had been to promote at an analogous unit quantity as AirPods, that may put annual AirTag income at $2 – 2.5 billion,” as per Caso.

The analyst theorized that it’s affordable that AirTags would promote at a a lot larger unit quantity in comparison with AirPods as customers purchase a number of models to tag gadgets akin to wallets and keys.

“We wouldn’t be shocked to see AirTags develop to be a $10 billion enterprise over time, placing that product near AirPods by way of income affect.”

Precision AirTag monitoring is simply accessible for customers of iPhone 11 and above and supplies an incentive for customers to improve, in response to Caso.

This month, Apple mentioned it could let third-party firms use its “Discover My” monitoring community, which implies third-party merchandise can now be tracked utilizing units made by the Tim Cook dinner-led firm.

Apple Worth Motion: Apple shares closed practically 1.3% decrease at $133.11 at press time and fell 0.61% within the after-hours session.

Learn Subsequent: Discord Units Apart Microsoft’s Acquisition Bid In Favor Of IPO Plan Revival: WSJ

Photograph Courtesy: Apple Inc.

Newest Rankings for AAPL

Date Agency Motion From To
Apr 2021 Morgan Stanley Maintains Chubby
Apr 2021 Morgan Stanley Maintains Chubby
Mar 2021 UBS Upgrades Impartial Purchase

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