Gene Munster on Apple's Next Moves

@ Street Insider

September 24, 2014 2:35 PM EDT

Now that Apple (NASDAQ: AAPL) has announced its bigger and better iPhone and Apple Watch, speculation from investors, fanboys and critics will ultimately turn to "What's Next?" Piper Jaffray analyst Gene Munster provided his thoughts Wednesday on what's next for the tech titan.

First, Munster believes a television is likely the next new product category Apple will tackle. Despite being admittedly wrong about the timing over the past several years, Muster said don't dismiss their insistence of the television. Munster notes that as recently as 9/12 on Charlie Rose, CEO Tim Cook said that the TV is a category in which Apple has great interest in, given the experience is "stuck in the 70s." Cook also noted that Apple has "taken a stab" at TV with Apple TV and claimed that it is an area Apple continues to look at. Munster also points to the acquisition of Primesense, a motion capture technology company used inMicrosoft's Kinect. Apple historically leverages its acquisitions directly into products, he said, citing AuthenTec in iPhonebiometrics security as an example. On timing of a TV, Munster notes that Apple's focus in on the Watch in 2015 so it is unlikely until 2016. "We believe Apple still has work to do in terms of developing content relationships and developing a gaming platform. We also believe that ultimately the television can become a home hub as the connected home evolves. Thus the next step for Apple with regard to the television may likely be the introduction of an updated Apple TV box that includes some gaming and possibly Siri."

Next, Munster expects Apple to continue to evolve in wearables. The analyst highlights the company's "fashion" related executive appointments over the past year. While presumably the hires are to support the launch of the Apple Watch they will also drive Apple as a fashion brand. Given this, a parlay into glasses could make sense. "We believe as the company refines its watch product, which has moved it squarely into fashion, the company could eventually revolutionize the glasses category with stylish glasses vs the current market offerings," he said. "If Apple were to enter this category, we believe it would be at least 2-3 years away."

Lastly, while less likely, Apple could enter the car market. Munster recalls last year's speculation that Apple could acquire Tesla (NASDAQ: TSLA). While Apple could afford to buy Tesla, with a $30 billion plus market cap it would not be likely given Apple's biggest acquisition in its history was Beats for ~$3 billion. " We believe that despite synergies around the usage of lithium ion batteries in Apple's electronics and Tesla's vehicles, it would require a significant jump for Apple to make a splash in the car market. While we believe at this point it is unlikely that Apple would enter the car market, we believe that beyond consumer electronics, cars may be the only other market viable for Apple to enter over the long-term (10+ years)."

@ Seeking Alpha

If you're out there, I have a question or two for you Mr. Munster!