Apple Inc (NASDAQ:AAPL, ETR:APC) diehards celebrated the Friday launch of the new Vision Pro spatial computing headset in various ways, from being arrested for illegally using it while driving, to sharing an augmented reality meal with friends.
Think different. #applevisionpro pic.twitter.com/dEALUsntS8
— Dante (@lentinidante) February 2, 2024
User reviews have cut a similar theme: The Vision Pro is a technical marvel, with some serious limitations.
The single greatest piece of tech of all time? Some would say so, just be careful of neck strain and the poor battery life.
Also, don’t expect access to all of your favourite apps - YouTube, Spotify and Netflix have yet to commit to the $3,500 headset, and there is yet to be that ‘killer app’ to make the Vision Pro an essential part of your arsenal.
But as we saw with the iPad, Apple is highly capable of convincing people that they need a device they didn’t previously consider necessary.
So far, Apple has kept quiet on opening weekend sales, but first-hand reports sound encouraging.
“With Vision Pro officially on sale Friday into this weekend it's clear from our various Apple store visits that customers are coming into Apple Stores with a curiosity and intrigue for demos and purchases we have not seen in many years,” said analysts at Wedbush.
“Customers we have spoken to over the weekend are seeing firsthand spatial computing and the appeal this unique Apple Vision Pro device brings to the table and ecosystem for 2.2 billion active iOS devices globally.
“We believe Apple Vision Pro is a potential game changer over the coming years and Cupertino has found clear success with this next-generation form factor surpassing by a wide margin original Street expectations.”
Wedbush recently increased its 2024 Vision Pro sales target from 460,000 units to 600,000 units, with an initial sales bogey of one million units for 2025.
According to Wedbush: “While many on the Street are dismissing Vision Pro as noise, we strongly disagree and believe it's the first step towards a much broader technology vision that Cook & Co. plan to push to its installed base over the coming years.”
Wedbush’s bullish Apple thesis would be good news as the company attempts to reclaim its status as the world’s most valuable company, a status recently stolen by old-school tech rival Microsoft Corp (NASDAQ:MSFT).
Unlike Microsoft, Apple has failed to firmly plant its flag in the burgeoning artificial intelligence (AI) sector, therefore being sidelined in the bumper AI-powered stock market rally of 2023.
But, according to Wedbush, the Vision Pro “is the first step to Apple pushing into AI and eventually a separate AI App Store we expect Apple to discuss initially at WWDC this summer.”
“Last week Apple gave conservative March guidance with China headwinds a worry for the Street, we continue to view this as a small blip on the renaissance of growth ahead for Apple over the next 12 to 18 months and this remains a table pounder tech stock to own in our view.”