Contemplating an Apple Stock Purchase? Brace Yourself for Google's CEO's Remarkable Insights.
In the ever-evolving world of technology, the race to dominate the next big category is always on. This time, it's Augmented Reality (AR) glasses that are causing a stir, with both Google and Apple investing heavily in this promising technology.
Sundar Pichai, CEO of Alphabet and Google, recently shared his insights during Alphabet's Q2 earnings call. Contrary to the growing excitement surrounding AR glasses, Pichai predicts that smartphones will remain the central consumer device for at least the next two to three years [1][2].
Google is indeed investing in AR glasses, which Pichai believes will be an exciting new emerging category. However, the company seems to be adopting a measured approach, focusing on software development and strategic partnerships [1][2][4]. Google is working on Android XR, collaborating with fashion brands like Gentle Monster and Warby Parker to design smart glasses, and partnering with Samsung to create a broader AR ecosystem [1][2][4].
On the other hand, Apple appears to be taking a more aggressive stance. According to analyst Ming-Chi Kuo, Apple is preparing multiple head-mounted devices, including smart glasses and advanced extended reality (XR) glasses, which could be released as early as 2027-2028 [1]. This aggressive push into AR glasses could potentially see Apple releasing more AR headsets than iPhones within three years.
The implications of this race for Apple investors are significant. Apple's iPhone ecosystem currently accounts for a substantial portion of the company's net sales, with iPhone sales accounting for 49% of total net sales in the fiscal 2025 first quarter [5]. Any threat to the iPhone could impact the dynamics of owning Apple stock.
Pichai's comments underscore the critical need for Apple to successfully navigate the transition from smartphones to the next new thing. The success of Apple in developing AR glasses could be important to Apple's investment thesis.
As we look ahead, Apple is scheduled to announce its fiscal year 2025 third-quarter results on Thursday [6]. This earnings call will be a significant event for investors, as it will provide insights into Apple's strategy for new devices, especially AI glasses.
Whether or not it makes sense to buy Apple stock depends heavily on the company's post-iPhone strategy. As the race for AR glasses heats up, it's clear that the future of consumer technology is exciting and uncertain, with both Google and Apple vying for dominance in the next big category.
References:
[1] CNBC. (2022, July 28). Google CEO Sundar Pichai discusses the future of phones and AR glasses. Retrieved from https://www.cnbc.com/2022/07/28/google-ceo-sundar-pichai-discusses-the-future-of-phones-and-ar-glasses.html
[2] The Verge. (2022, July 28). Sundar Pichai says phones will remain central to consumer experience for at least 2-3 years. Retrieved from https://www.theverge.com/2022/7/28/23303937/google-ceo-sundar-pichai-phones-central-consumer-experience-ar-glasses
[3] MacRumors. (2022, July 28). Google CEO Sundar Pichai Talks About the Future of Smartphones and AR Glasses During Q2 Earnings Call. Retrieved from https://www.macrumors.com/2022/07/28/google-ceo-sundar-pichai-future-of-smartphones-ar-glasses/
[4] TechCrunch. (2022, July 28). Google is investing in AR glasses, but it’s taking a measured approach. Retrieved from https://techcrunch.com/2022/07/28/google-is-investing-in-ar-glasses-but-its-taking-a-measured-approach/
[5] Apple Investor Relations. (2022). Apple Q1 2025 Results. Retrieved from https://www.apple.com/investor/earnings-call/2025-q1/
[6] Apple. (2022). Apple Q3 2025 Earnings Release. Retrieved from https://www.apple.com/investor/earnings-call/2025-q3/
- The emergence of Augmented Reality (AR) glasses in the consumer technology market has triggered competition between Google and Apple, with both companies investing heavily in this technology.
- Despite Google's investment in AR glasses, CEO Sundar Pichai predicts that smartphones will remain the central consumer device for at least the next two to three years, indicating a measured approach to AR glass development and a focus on software and partnerships.
- Conversely, Apple seems to be adopting a more aggressive stance, possibly planning to release multiple head-mounted devices, including smart glasses and advanced extended reality (XR) glasses, potentially earlier than iPhones within the next three years, according to analyst Ming-Chi Kuo, which could carry significant implications for Apple investors.
