How Messi fits into Apple's new strategy
By Emily Bary
As it pushes into virtual reality, Apple also could be building 'a "killer" app for a subsector of superfans,' says an analyst
Two seemingly unrelated developments involving Apple Inc. this week could actually be linked -- and indicative of an evolving future for the consumer-electronics giant.
Wednesday brought the news that Lionel Messi would be signing with U.S. Major League Soccer's Inter Miami CF next season, and The Athletic reported that Apple (AAPL), which owns the streaming rights to MLS games and also is making a Messi documentary, could have something to do with the move. The report said Messi could get a cut of the revenue Apple makes from new MLS Season Pass subscribers.
Apple didn't respond to a MarketWatch request for comment on those discussions with Messi.
See more: Messi says joining MLS's Inter Miami 'wasn't about money' after turning down $400 million from Saudi club
According to Jefferies analyst Andrew Uerkwitz, Messi's move to MLS dovetails nicely with Apple's recent push into virtual reality with its forthcoming $3,499 Vision Pro headset. The company highlighted immersive video when teasing the device at an event Monday, and early testers were impressed with the viewing experience during limited demos.
See also: Apple wants its Vision Pro to mark a computing revolution. Early testers say it's still just a fancy headset
"Combine this [Messi's] announcement with MLB Friday night games, Apple's acquisition of NextVR (streaming sports to VR), the Vision Pro... and now we have a 'killer' app for a subsector of superfans," Uerkwitz wrote in a note to clients Wednesday.
The headset face-off: How Apple's Vision Pro compares with the Meta Quest Pro, beyond a huge price gap
The developments tie together logically for Uerkwitz, though whether Apple succeeds with its strategy is a separate question. In his view, the company still has to solve for the "loneliness" factor: people like watching sports and movies with loved ones, but a family of five likely won't shell out $17,500 to outfit each member with a Vision Pro headset, and in general people may have to do their viewing alone, at least in the beginning.
Read: 10 reasons I won't be buying Apple's $3,500 VR headset
"The video game demo showed a single person on a couch playing," Uerkwitz wrote of Apple's Monday WWDC keynote, which showed footage of how the Vision Pro could be used. "Not a single demo was given with more than one person wearing a headset. This worries us for now, considering every trend we see in our coverage is about social experiences with others."
He has a buy rating and $210 target price on Apple's stock.
Don't miss: Will the new Apple headset provide a lifeline for Mark Zuckerberg's metaverse -- or kill it?
-Emily Bary
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06-08-23 0822ET
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