Apple's augmented-reality ambitions could be a 'game changer,' Bank of America says in upgrade

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Apple's augmented-reality ambitions could be a 'game changer,' Bank of America says in upgrade
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Apple may be planning to add to its product arsenal with a device for augmented reality, and that could help its stock. “We view this technology as a game-changer as it will enable many new applications,” said a Bank of America analyst.

Bank of America analyst Wamsi Mohan upgraded Apple’s stock AAPL, -0.80% to buy from neutral Tuesday, in part due to optimism for a potential AR headset, which he thinks could arrive at the end of 2022 or the start of 2023.

Augmented reality allows people to see digital effects over their real-world surroundings, while virtual reality lets people immerse themselves in digital worlds. Augmented reality may also give a lift to Apple’s flagship product, as Mohan predicts that consumers may opt for iPhones that better support powerful applications.

Accordingly, consumers may start replacing their iPhones more quickly than they did in the past, a trend Mohan sees supporting fiscal 2023 sales trends.

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