Home Business NewsApple takes a bite of the metaverse as markets are still troubled by inflation and rate hike questions

Apple takes a bite of the metaverse as markets are still troubled by inflation and rate hike questions

by LLB Editor
6th Jun 23 11:14 am

Investors are happily betting that Apple can make the kind of success out of its foray into the metaverse that it did with the smart phone and a slew of other gadgets now pre-fixed with the ubiquitous โ€˜iโ€™.

Even before the hotly anticipated โ€˜mixed realityโ€™ headset is unveiled as more than just arumour, shares in the tech giant soared to record heights.

With a backdrop of inflationary pressures and consumer caution any new product will be seen as a way to shore up revenues at a time people might be reluctant to upgrade tech they already have.

AJ Bellโ€™s Danni Hewson said:ย โ€œWhatโ€™s fascinating though is the expectation that Appleโ€™s brand of magic can breathe new life into the rather stalled metaverse, and its share price movements today have dragged Meta along for the ride.

โ€œCan Apple really ignite the excitement that so far has only really been felt from Mark Zuckerberg? As of yet it feels like an excitement that investors havenโ€™t really understood or accepted.

โ€œThough Apple has a knack for taking aproduct and somehow lifting it to another level, certainly in terms of public perception, and thereโ€™s an expectation that if Apple has chosen this bit of kit as their first new product in almost a decade, then there must be a really good business case behind it.

โ€œBut whilst investors are keeping one eye on the new, theyโ€™re also finding themselves stuck in the ever-present inflationary muck.

โ€œSaudi Arabiโ€™s decision to cut output from next month has rekindled concern that the oil price will remain artificially elevated โ€“ something airline bosses, governments and central bankers will be considering today.

โ€œFuel plays such a huge part in the inflationary environment that the current chess game being played is cause for concern in inflation-weary western countries.

โ€œAnd the impact of controlling inflation by rising rates is causing ever increasing strain on households, particularly those with a mortgage up for renewal or buyers trying to step on the first rung of ladder.

โ€œCaution is the watchword of the moment and the ECBโ€™s Christine Lagarde wonโ€™t be alone in having doubts about whether underlying inflation has really peaked across Europe.

โ€œWhat is clear is sheโ€™s carefully laying the groundwork for the ECBโ€™s next rate hike, a hike which is all but nailed on in the UK but remains in question in the US.โ€

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