Apple Vision Pro captivates consumers, but high price limits demand | Top Vip News

The first weekend of Apple Vision Pro availability saw consumers lining up at Apple (AAPL) retail stores to try out the new spatial computing headsets.


Wall Street analysts say the innovative new device is positive for the Apple brand, but sales are expected to be limited by its high price.

The Apple Vision Pro went on sale Friday after two weeks of pre-orders. The mixed reality headset starts at $3,499.

“It’s clear from our various visits to Apple Stores that customers are coming to Apple Stores with a curiosity and intrigue about demos and purchases that we haven’t seen in many years,” Wedbush Securities analyst Daniel Ives said in a note to customer. “We believe Apple Vision Pro can be a game-changer for years to come.”

Apple Vision Pro is more than just ‘noise’

Ives predicted that Apple will sell 600,000 units of the Apple Vision Pro in 2024. Before pre-orders began, he had predicted 460,000 units.

“While many on the street dismiss Vision Pro as noise, we disagree and believe it is the first step toward a much broader technology vision that (CEO Tim) Cook & Co. plans to drive across its installed base in the coming years.” he said.

Ives rates Apple shares as Outperform with a 12-month price target of 250.

In trading today, Apple shares rose 1% to close at 187.68.

Meanwhile, Apple stock has formed a flat base with a 199.62 buy point, according to IBD MarketSmith charts.

Cheaper version not seen until 2026

BofA Securities analyst Wamsi Mohan was also optimistic about the prospects of the Apple Vision Pro.

“Despite some concerns, we believe Vision Pro could be an important new category for Apple,” Mohan said in a client note. “Vision Pro will deliver a differentiated experience for sports and entertainment, productivity, health and fitness, and retail.”

Mohan rates Apple stock a buy with a price target of 225.

Mohan predicts that Apple will sell 400,000 units of the Apple Vision Pro in 2024 and 1 million units in 2025. He predicts that Apple will launch a $2,000 version of the device in 2026, generating sales of 4 million units that year.

Apple Vision Pro has a ‘wow’ factor

UBS analyst David Vogt said his first-hand test of the device left him impressed.

“Although the demonstration only lasted 25 to 30 minutes and was largely written and controlled by Apple, the capabilities and technology powered by Apple’s M2 chip and the new R1 chip that processes data from five sensors and 12 cameras to provide “Head, eye and hand information tracking as well as 3D environment mapping were impressive, particularly the spatial audio and immersive 3D video,” he said in a client note.

He predicted that Apple will sell at least 400,000 Apple Vision Pro units in its fiscal 2024 year, which began on October 1.

“The uniqueness and wow factor of the technology” will likely resonate with the Apple faithful, Vogt said. However, its high price will limit demand, he said.

“One of the most obvious use cases for the technology after its demonstration is sports and entertainment,” Vogt said. “Immersive video technology creates a feeling that the user is truly present, whether it’s a live music event, a baseball game, or some other experience like climbing a mountain.”

Vogt rates Apple shares Neutral with a price target of 190.

Follow Patrick Seitz on X, formerly Twitter, at @IBD_PSeitz for more stories on consumer technology, software and semiconductor stocks.


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