Apple’s (AAPL) massive installed base of more than 2.35B users combined with its expertise in the vertical integration of hardware, software, services and semiconductors places it in a prime position to benefit from the coming robotics revolution, according to Morgan Stanley.
The greenfield growth opportunity could lead to at least a $130B revenue opportunity by 2040 and account for 10% to 25% of Apple’s current share price, the investment firm said in a detailed report issued on Thursday called “Apple Robotics — What’s Cooking In Cupertino’s Kitchen?”
“The emergence of Generative AI and multi-modal models, as well as innovation in dexterous manipulation and mobility, is rapidly accelerating the real-world applications of physical AI, which Morgan Stanley projects will drive TAM to reach $5 trillion by 2050, with the potential to eventually surpass the $30 trillion global labor market,” the report said.
“Although China is leading the robotics race, legacy automakers offer manufacturing scale, and tech rivals hold an AI edge over Apple,” the report said. “Yet Apple retains a distinct advantage — its global brand strength, vast device installed base, visual data capture capabilities, and vertically-integrated consumer electronics ecosystem. If Apple leverages its hardware device experience and delivers superior design and unique ecosystem integration, it could capture meaningful market share in robotics.”
Several big tech companies are already pushing consumer robots.
Nvidia (NVDA) is working with Google (GOOG)(GOOGL) DeepMind and Disney Research (DIS) to develop Blue, which appears similar to a droid from the Star Wars franchise.
“Blue can learn how to be a good robot inside a physically aware environment,” said Nvidia CEO Jensen Huang during GTC DC. “Tell me he isn’t adorable. We all want one.”
Meanwhile, Amazon (AMZN) is already offering its robot called Astro by invitation only for $1,600. It looks like a jazzed-up Roomba with a tablet for a face. However, it is capable of monitoring a home and is powered with Alexa. The robot will alert owners if it detects unrecognized people or sounds.
Samsung (SNLLF) is marketing its Ballie as a home robot and a buddy.
“In the medium term, a home robot launch, likely in 2027, would mark Apple’s entry into embodied AI, while partnerships and acquisitions of robotics companies would deepen Apple’s hardware capabilities,” Morgan Stanley said.