Analyst: Apple is cornering the market for AR laser tech

Fiber-optic component supplier Finisar (FNSR) popped after Thursday’s earnings call.

From a note to clients Friday by Loup Ventures Gene Munster:

Last night, Finisar (FNSR) reported the Apr-17 quarter and made comments that all but ensure they will be one of two or three suppliers of VCSEL [vertical-cavity surface-emitting lasers] lasers for the high-end version of the next iPhone…

[Although] Finisar management did not mention Apple by name they highlighted they expect to see volume VCSEL orders in their second fiscal quarter, which is the October quarter end of this calendar year. The company anticipates shipping “millions” of units during the quarter, but management also went on to say they anticipate unit shipments to be in the “10s of millions” in future quarters, which gives us further confidence 3D sensing and AR applications will be one of the focus features in the next generation of iPhones…

Apple is putting the hammer down in AR. The company already has more than 100m AR-enabled iPhones (iPhone 7) in use today, and all versions of the next iPhone will be AR-enabled. Incorporating these high-end VCSEL lasers into the iPhone will enrich the augmented reality experience. Coupled with the release of the ARKit at WWDC in early June, Apple is positioning itself to become a leader in this next generation tech movement. Separately, Apple is cornering the market for the VCSEL sensors.

Munster, who for many years covered Apple for Piper Jaffray, has made AR an area of special interest at his new firm. Podcast: Gene Munster’s new hobbyhorse.

One Comment

  1. Robert Paul Leitao said:

    If speculation proves to be accurate, Apple is delivering three new iPhone models this fall. Coupled with the success of the current iPhone 7 series handsets, Apple is well-positioned to deliver a rich AR experience to over 100 million device owners as we move through the next several months.

    It’s quite disappointing to see Street valuations for Apple based almost solely on the prospects for iPhone unit sales and the revenue generated by that particular component of the company’s overall revenue mix. Services revenue will continue to rise as developers push out new products that take advantage of both the high quality handsets and the advances recently announced for iOS 11.

    June 18, 2017

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