EFTA02396291

From: Richard Kahn Sent: Tuesday, September 12, 2017 7:51 PM To: jeffrey E. Subject: Fwd: Apple, Inc.: Apple sets the stage for Augmented Reality to become the next killer app on smartphones Richard Kahn HBRK Associates Inc. 575 =exington Avenue 4th Floor New York, NY 10022 tel 212-971-1306 fax 212-320-0381 Begin forwarded message: From: =/b>"Morgan Stanley" < Subject: =/b>Apple, Inc.: =pple sets the stage for Augmented Reality to become the next killer app =n smartphones Date: September 12, 2017 at 3:20:14 PM EDT To: qb><[email protected]> Reply-To: =/b><[email protected]> <http://www.morganstanley.com/img/cs/spacer.gif> <http://www.morganstanley.com/img/cs/spacer.gif> <http://www.morganstanley.com/img/cs/spacer.gif> <http://www.morganstanley.com/img/cs/spacer.gif> Wealth =anagement <http://www.morganstanley.com/> <http://www.morganstanley.com/img/cs/spacer.gif> Apple, Inc.: Apple =ets the stage for Augmented Reality to become the next killer app on =martphones EFTA_R1_01428341 EFTA02396291 Katy L. Huberty, CFA =E2 Morgan Stanley September=12, 2017 7:17 PM GMT Following the early release =f ARKit at June's WWDC, Apple spent a significant amount of =ime on the advanced camera functionality in the iPhone 8, 8 Plus and X, =nd Augmented Reality features in iOS11 available to the majority of =Phone users upon download starting September 19. Demos included games =arhammer 40,000: Freeblade, SkyGuy and Directive Games new multiplayer =ame The Machines. We believe AR has the potential to become the next =iller app that accelerates smartphone upgrades and drives increased =ervices monetization and growth, which is reflected in our $253 bull =ase valuation, representing close to 60% upside vs. Apple's =urrent share price. For more details on why we think AR will be the =ext big smartphone technology trend, how Apple fits into the AR =cosystem, and the $400B impact AR could have on the technology market, =lease see our recently published Global Insight note here: https://ny.matrix.ms.com/eqr/article/webapp/2112f296-7923-11e7-=de2-c77bdd04406b?ch=rpintatsch=afr This alert is sent from: Andrew Atlas, [email protected] You received this because you requested =hat you receive content and reports from: APPLE =NC. Please contact your FA if you want to unsubscribe from the =lerts. <http://www.morganstanley.com/img/cs/spacer.gif> <http://www.morganstanley.com/img/cs/spacer.gif> <http://www.morganstanley.com/img/cs/spacer.gif> <http://www.morganstanley.com/img/cs/spacer.gif> Disclosures: Please see =he full report for risks, disclosures and other important =nformation. Important disclosures regarding the =elationship between the companies that are referenced in Morgan Stanley =esearch and Morgan Stanley Wealth Management research are available on =he Morgan Stanley Wealth Management disclosure website at https://www.morganstanley.com/online/researchdisclosures. Morgan Stanley Wealth Management Not Acting as Municipal =dvisor Morgan Stanley Wealth Management is not acting as a municipal =dvisor to any municipal entity or obligated person within the meaning =f Section 155 of the Securities Exchange Act (the "Municipal Advisor =ule") and the opinions or views contained herein are not intended to =e, and do not constitute, advice within the meaning of the Municipal =dvisor Rule. Copyright 2 EFTA_R1_01428342 EFTA02396292 The =opyright in materials provided by Morgan Stanley is owned by Morgan =tanley & Co. LLC. Morgan Stanley Wealth Management is the trade =ame of Morgan Stanley Smith Barney LLC, a registered broker-dealer in =he United States. © 2017 Morgan Stanley Smith Barney LLC. Member =IPC. <http://www.morganstanley.com/img/cs/spacer.gif> <http://www.morganstanley.com/img/cs/spacer.gif> chttp://www.morganstanley.com/imecs/spacergif> <http://www.morganstanley.com/img/cs/spacer.gif> <http://www.morganstanley.com/img/cs/spacer.gif> <http://www.morganstanley.com/img/cs/spacer.gif> <http://www.morganstanley.com/img/cs/spacer.gif> 3 EFTA_R1_01428343 EFTA02396293