Stock Market

Get Ready to Shell Out for the ‘iPhone Killer’

Source: Led Gapline / Shutterstock

[Editor’s note: “Get Ready to Shell Out for the ‘iPhone Killer’” was previously published in December 2021. It has since been updated to include the most relevant information available.]

I love my iPhone. I can do everything on it. Send messages. Call folks. Read the news. Trade stocks. Watch videos. Play games.

My iPhone is great. But, as much as I love it, I’m also tired of it.

I mean, Steve Jobs introduced the iPhone to the world back in 2007.  That’s 14 years ago. That may as well be a century in the technology world. New tech products seemingly replace old ones in the blink of an eye.

Sure, the iPhone has improved dramatically since the first edition’s launch back in June 2007. But if we’re being honest, not much has changed on the iPhone since Apple got rid of the home button back in 2017 with the iPhone X.

Yes, the cameras have improved, I guess. And there’s more colors. Cooler displays, too, right?

Now, I don’t know about you, but those upgrades didn’t make much of a difference to me. To me, the iPhone hasn’t really changed since 2017.

It’s time for something new. It’s time for the next evolution of consumer tech hardware – the device that replaces smartphones. Indeed, it’s time for the iPhone killer.

Fortunately, the iPhone killer is right around the corner.

I’m talking about Apple’s (AAPL) incoming virtual reality headset. It promises to make AAPL one of the best metaverse stocks to buy.

Every tech company in the world is going “all-in” with virtual reality technology. They’re racing to build what many feel is the next generation of the internet – the metaverse.

What Is the Metaverse?

The metaverse is basically a 3D version of the internet. It is the internet. It has games, videos, news, shopping, advertising — all of it. But we won’t be interacting with all that content by swiping on a digital screen the way we do now. Instead, we’ll put on a virtual reality headset and immerse ourselves in that content.

In other words, you won’t be observing the internet through a screen. You’ll be in the internet. That, in short, is the metaverse.

Meta (META) is so confident about that future that it’s changed its name – short, of course, for metaverse. Microsoft (MSFT) is building metaverse offices, centered largely around its Teams platform. Nvidia’s (NVDA) CEO has said the metaverse will be “much, much bigger than the physical world.”

The Big Tech world has spoken. The metaverse is the future.

But to access the metaverse, you need a virtual reality headset. And to date, Big Tech companies have created rather unimpressive VR headsets.

Alphabet (GOOG, GOOGL) released a tone deaf product in Google Glass, which were low-quality, expensive, and invasive enough to dub anyone who wore them “Glassholes.” Sure, Snap‘s (SNAP) Spectacles and Meta’s Oculus Quest 2 are decent, but they haven’t taken the world by storm. Meanwhile, Microsoft’s HoloLens 2 is technically very impressive – but it weighs a hefty 1.25 pounds, starts at $3,500, and is intended exclusively for enterprise use.

Let’s be clear. Big Tech companies have tried to make VR headsets, and for the most part, they’ve failed. And metaverse stocks have stayed flat.

Big Tech’s Big Fails

Then again… why should those companies succeed in making mainstream VR headsets? Save Microsoft, they’ve never made a hardware product. Meta is a software company. Same with Snap and Google. And while Microsoft makes some hardware, it’s recently pivoted to have a cloud computing focus.

So, the market’s failure to create high-quality VR headsets with mainstream appeal is a result of the nature of the companies that have tried to make those headsets. We’re seeing software companies trying to make hardware. No wonder they’re failing! That’s like asking a point guard in basketball to become a rebounding machine, or a pocket quarterback to rush 100 yards.

It won’t happen!

But soon, that all changes…

It’s rumored that next year, the world’s most successful tech hardware maker of all time is releasing a VR headset.

Of course, I’m talking about Apple — the maker of the iPhone in your hand, the Apple Watch on your wrist, the Mac on your desk. Indeed, it’s the maker of every major successful tech hardware product of the last 20 years.

That company is making a VR headset. Today, it’s mostly software companies who are trying to make VR headsets. Soon, the best hardware company in the world is going to make one.

The Best Metaverse Stocks to Buy in 2022

Make no mistake. Apple’s VR headset will be a game-changer for the metaverse.

It will be very high-quality. It will look very cool, be very light and portable. It’ll be affordable. Indeed, it’ll be everything it needs to be to achieve mainstream approval.

I cannot overstate the importance of this launch enough. It’s like the launch of the iPhone back in 2007. This is the biggest tech hardware launch of the past decade!

Once everyone has an Apple VR headset instead of an iPhone, they’ll be hanging out in the metaverse instead of scrolling on their smartphones. The multi-trillion-dollar Metaverse Revolution that everyone has been raving about will finally begin…

To play it, you could buy Apple stock. But that’s boring. And quite frankly, it lacks upside potential. Apple is already a $2.8 trillion company. Even if the company entirely dominates the metaverse market, maybe the stock doubles? Maybe? And that’s not even considering that its VR headset business will cannibalize its iPhone business…

So, to play the emergence of the Metaverse Revolution in 2022, I say pass on Apple stock. Instead, buy smaller VR/AR stocks that are set to win big as the metaverse goes mainstream.

Specifically, there’s one $5 stock on my radar that I think could be the Metaverse Revolution’s biggest winner. While Apple stock could double, this tiny stock could soar 20X.

Two-fold or 20X? Which one sounds better to you? I like the sound of 20X gains more, don’t you?

On the date of publication, Luke Lango did not have (either directly or indirectly) any positions in the securities mentioned in this article.

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