Meta Ray-Ban Display not a threat to Apple ecosystem, Oppenheimer says

Investing.com - Oppenheimer has reiterated a Perform rating on Apple (NASDAQ:AAPL), the $3.55 trillion technology giant, following Meta’s unveiling of its Ray-Ban Display smart glasses. According to InvestingPro data, Apple maintains its position as a prominent player in the Technology Hardware sector, with a robust 46.7% gross profit margin.

The $799 Meta Ray-Ban Display features in-lens display and EMG wristband-enabled gesture control, representing another step toward making smart glasses a mass market product, according to Oppenheimer.

The research firm concludes that Meta’s new product does not pose a threat to Apple’s ecosystem around iPhone, AirPods, and Apple Watch, nor is Meta leapfrogging Apple in smart glasses design.

Oppenheimer notes that Meta Ray-Ban Display is not offering an SDK for third-party developers to build dedicated apps, limiting its functionality primarily to pairing with smartphones. Supply chain checks indicate production volumes in the "tens of thousands" upon release, with forecast sales of 150,000-200,000 units over the next two years.

While acknowledging the product’s unique combination of high-resolution display, relatively light weight, sub-$1,000 price point, and Meta’s AI integration, Oppenheimer states the 67-gram weight remains "an uncomfortable burden for most" and the device is "still far from being able to challenge Apple’s wearable device ecosystem." For deeper insights into Apple’s valuation and comprehensive analysis, including 12+ additional ProTips, check out the detailed research available on InvestingPro.

In other recent news, Apple is reportedly in discussions with suppliers to begin test production of foldable iPhones in Taiwan, with plans to mass produce these devices in India by 2026. Meanwhile, UBS has maintained its Neutral rating and a price target of $220 for Apple, citing mixed demand for the iPhone 17 lineup based on early preorder data. Tigress Financial Partners has increased its price target for Apple to $305, maintaining a Strong Buy rating, highlighting Apple’s advancements in AI, services growth, and U.S. supply chain investments as key drivers of future revenue growth. Evercore ISI has reiterated an Outperform rating with a $260 price target, noting strong carrier promotions for the iPhone 17, with major U.S. carriers offering up to $1,100 off with eligible trade-ins. Bernstein SocGen Group has initiated coverage on Apple with an Outperform rating and a $290 price target, emphasizing Apple’s strategic position to leverage advancements in artificial intelligence. These developments reflect Apple’s ongoing efforts to innovate and expand its market presence.

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