Apple's new iPhone 8 this year will have augmented reality technology, Goldman says

Apple iPhone 7 mobile phones being sold.
Getty Images

The expected release of the iPhone 8 later this year could be a game changer for Apple as key new features are incorporated leading to a spike in sales, according to Goldman Sachs, which boosted its earnings outlook and price target estimate for the tech giant Monday.

"Following recent industry commentary, we are increasingly confident that the upcoming iPhone 8 will include AR [augmented reality] technology that represents a significant feature upgrade from prior iterations," equity analyst Simona Jankowski wrote in a research note.

According to her analysis, the technology, which uses digitally generated graphics, has the potential to become a "key differentiator" for the 10-year-old device.

More In Pro News and Analysis

CNBC ProGoldman picks stocks poised to benefit from the multitrillion dollar ESG opportunity ahead
CNBC ProThere’s another crypto 'washout' coming before investors should buy, Fundstrat says
CNBC ProHere are Wednesday's biggest analyst calls: Tesla, Goldman Sachs, Penn, Amazon, McDonald's & more