Wall Street was not impressed by Apple's big push into augmented-reality

  • Wall Street analysts were not impressed by Apple’s push into augmented-reality at WWDC.
  • The company unveiled its new and improved AR building software, ARKit 2, complete with an app that allows users to create virtual worlds around their real-life Lego builds.
  • Macquarie Research said it was “underwhelmed” by the announcement, which captured the tepid tone of analyst round-ups on WWDC.
  • Apple shares rose 1.7% to a new all-time high of $US193.42 on Monday.

In a Worldwide Developer Conference light on major news, Wall Street analysts clung to Apple’s update on augmented-reality – but they were pretty underwhelmed by what they saw.

The tech company unveiled its new and improved AR building software ARKit 2 at WWDC on Monday, showcasing one particular demo from Lego, which allows users to create virtual worlds around their real-life Lego builds.

Another app, which will be released later this year, invites users to play a slingshot challenge with friends. Lego Director of Innovation Martin Sanders said the step into multiplayer AR gaming was taking the technology to the “next level.”

Wall Street analysts were less convinced, however. The response was tepid in a number of notes circulated to clients and reviewed by Business Insider.

“It seems to be very focused on AR as a key driver for the future, though we continue to be underwhelmed by current offerings,” said analysts at Macquarie Research. Nomura added: “We believe AR will be insanely great… it is progressing… just not yet.”

Others shared similar sentiments. Longbow Research said augmented-reality technology “remains in its infancy” in a note surveying Apple’s offerings, while UBS said it still doesn’t see a “killer app.”

There was one positive voice for Apple. RBC Capital Markets said: “AR Kit 2.0 with new USDZ file format, developed with Pixar and partners like Adobe, could give AAPL an edge in these initial stages of technology.”

And Apple must have done something right on Monday, as shares rose 1.7% to a new all-time high of $US193.42 (£144.80). Apple shares were trading at $US191.83 early on Tuesday morning.

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