Apple‘s big event may have failed to impress investors on Monday — but those investors are actually missing the point of the tech giant’s new services, tech investor Gene Munster told CNBC on Monday.
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Shares of Apple closed down 1.2 percent after the highly anticipated event, which introduced its streaming video service Apple TV+, a paid news service Apple News+ , a credit card and a gaming service called Arcade. Apple did not announce many details about the services, including pricing for TV+ and Arcade. But Munster says investors who focus on the missing details are missing the bigger picture.
“What Apple is saying is they are going to take things that we interact with every day — whether it’s the streaming service, gaming or our credit card – and we’re going to try to change in terms how people use that. The language that they use is ‘enriching people’s lives,'” said Munster, founder of the venture capitalist firm Loup Ventures.
That means creating content that isn’t typical, gaming that’s healthier, and a credit card that adds transparency, he added.
“That gets lost in the conversation today — these subtle little approaches that Apple does to make our lives just a little bit better. And I think that ultimately is going to yield a higher share price,” Munster said on “Fast Money.”
Apple is entering a crowded field of original programming, going up against established names like Netflix and Amazon. In its announcement on Monday, Apple called on big names like Steven Spielberg, Reese Witherspoon, Steve Carrell, Oprah Winfrey and Jennifer Aniston to discuss their upcoming shows.
The tech giant didn’t say how many programs they have or how much the service would cost.
Munster said Apple probably has about 40 shows and movies — a “far cry” from Netflix’s library. However, he still thinks Apple’s foray into the space will hurt Netflix’s stock.
“The quality of this is what is going to ultimately stand out and I suspect that the way that Apple is going to measure their success is the number of industry awards,” he said. “This content, this different approach is going to have an impact and I think that that could be a similar size as Netflix, call it $15 billion a year”
Munster is projecting the four services together will yield about $20 billion or so in revenues in the next five years.
—CNBC’s Kif Leswing contributed to this report.