Apple Inc. AAPL recently acquired Workflow, a popular automation app, which allows users to group together varied number of actions to complete tasks. Workflow has been developed by Ari Weinstein and his team. The app won an Apple Design Award in 2015.
Per Techcrunch, Apple is likely to integrate the Workflow app with its Siri Application program interface (API) as well as its private APIs going forward. The integration will help in expanding the iOS ecosystem and improve app accessibility irrespective of the complexity of devices.
Workflow is an important addition to App Store, which has become a major source of revenues for the company in recent times. (Read More: Apple's App Store Reports Record Sales for 2016)
Apple Inc. Revenue (TTM)
Apple Inc. Revenue (TTM) | Apple Inc. Quote
Moreover, the integration of Workflow’s automation capabilities with Apple’s private APIs is expected to make the process of developing Augmented Reality (AR) devices easier.
AR Initiatives Present Growth Opportunity
Apple was not the first company to develop a smartphone. However, its flagship iPhone is an iconic product that has revolutionized the market. The device helped the company to strengthen its brand name as an “innovator” and boosted share price.
Notably, since the launch of the first iPhone (Jun 29, 2007), the stock has gained a massive 708.3% compared with the Zacks Computer-Mini industry’s gain of 325.6%.
However, Apple is now under tremendous pressure to launch a new product (especially after the lackluster Apple Watch), which can maintain its reputation. AR is one of the many fields under consideration. In fact, there have been quite a few rumors regarding the company’s AR efforts as CEO Tim Cook has consistently emphasized on developing the technology in the last few months.
Per Bloomberg, Apple has built a team combining people who have experience in working on Facebook’s FB Oculus and Microsoft’s MSFT HoloLens. The company has also acquired several smaller firms with expertise in AR hardware, 3D gaming and virtual reality software.
The market presents significant growth opportunity for Apple despite competition from Alphabet GOOGL, Microsoft and Facebook. According to Bloomberg, which quoted Global Market Insights figures, the global market for AR products will surge 80% to $165 billion by 2024. Per IDC, global revenues of the AR/VR market are expected to grow at a CAGR of 181.3% from $5.2 billion in 2016 to over $162 billion in 2020.
Zacks Rank & Stock to Consider
Currently, Apple has a Zacks Rank #3 (Hold). A better-ranked stock in the same sector is 3D Systems (DDD), carrying a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
The long-term growth rate for 3D Systems is currently pegged at 17%.
More Stock News: This Is Bigger than the iPhone!
It could become the mother of all technological revolutions. Apple sold a mere 1 billion iPhones in 10 years but a new breakthrough is expected to generate more than 27 billion devices in just 3 years, creating a $1.7 trillion market.
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