(MY highlights in italics in the last paragraph)

Gene Munster's Apple 'Mixed Reality' Thesis Is Already Playing Out
2:47 pm ET January 29, 2016 (Bending)

Piper Jaffray analyst Gene Munster joined Benzinga's PreMarket Prep on Wednesday morning and shared some color on Apple Inc. (NASDAQ: AAPL)’s first quarter results, including the earnings beat, the revenue miss and the poor iPhone, iPad and Mac sales.

After going over the fundamental story, the expert went into virtual reality, assuring that the technology is the "forerunner" to a bigger theme in future— “mixed reality.” Munster thinks that, over the next decade, the concept of "mixed reality" will see "progressively more M&A" at Apple.

On Friday, the Financial Times reported that in an effort to diversify its growth sources away from the iPhone, the tech behemoth has put together a large team of virtual and augmented reality experts and has been building prototypes of headsets that could one day compete with Facebook Inc (NASDAQ: FB)’s Oculus Rift and Microsoft Corporation (NASDAQ: MSFT)’s Hololens.

Apple's Latest Augmented Reality Acquisition

Most recently, Apple acquired Flyby Media, “an augmented reality start-up that lets mobile devices ‘see’ the world around them. Flyby’s team worked closely with Google in developing software for its 3D positioning technology Project Tango,” the note explicated. “Apple is still seeking further acquisitions in optical technologies to enable it to complete its project, according to people familiar with its plans.”

Despite the chitchat, Apple has declined to comment on any virtual reality initiatives.