Analyst Predicts 1.5 Million Units Sold in First Year: Here's What Wall Street Says About Apple's Vision Pro
Apple has introduced its first major product since the Apple Watch back in 2015, and it's catching the attention of Wall Street. The Vision Pro headset, which costs $3,499, boasts both virtual and augmented reality features, advanced eye-tracking capabilities, and hand-based gesture controls. Apple plans to release the device in early 2024.
Despite the Vision Pro's high price point, few believe it will become a mass-market product in its early years. However, the sales estimates among Wall Street analysts vary greatly. Bank of America predicts that Apple will sell 1.5 million units of the Vision Pro in its first year, while Wedbush expects only 150,000 units sold in the first year. These predictions indicate that the device will generate anywhere between $525 million to $5.2 billion in revenue the next year.
Here's what four Wall Street analysts had to say about Apple's new device.
Wedbush: "A revolutionary product."
Rating: Outperform — Price Target: $205
"This marks a new era for Apple being the first new product line in almost a decade and the first 3-D interface for the company that has many use cases and apps within the Cupertino ecosystem that should distinguish the Vision Pro from the competition such as the Meta Quest. Given the high price points, we believe initial shipments are expected to be roughly 150,000 units for Year 1 and roughly a 1 million units in Year 2 at lower price points," Wedbush analyst Dan Ives said.
Bank of America: "Adoption will take time."
Rating: Neutral — Price Target: $190
"The price tag of $3,499 was higher than the $3K broadly speculated. While we believe MR has the potential to drive Services revenues higher via a new set of premium Apps the adoption will take time... In our prior analysis we had estimated 1.5 million units to be sold in the first full year, and the launch today did not change our view. We continue to expect at least some subsequent versions of Vision Pro to be priced lower in order to appeal to a larger customer set," Bank of America's Wasmi Mohan said.
JPMorgan: "Potential catalyst for AR/VR market."
Rating: Overweight — Price Target: $190
"While Vision Pro might not drive significant volumes given its premium price point, it could be the potential catalyst for the the AR/VR market as Apple has proven in the past that consumer engagement can deliver willingness to pay premium pricing and Apple's focus is clearly to hit a home-run on consumer engagement as opposed to volumes with the first device in what admittedly will be a multi-year journey for the platform," JPMorgan's Samik Chatterjee said.
Goldman Sachs:
Rating: Buy — Price Target: $209
"We're encouraged by the long-term growth contributionsfrom the headset and Vision Pro app ecosystem, but expect near-term financial contributions to be limited as (1) the relatively high retail price point may limit near-term adoption; (2) previous media reports suggest the headset may be sold at breakeven; and (3) a relatively smaller installed base limits contributions from additional services revenue," Goldman Sachs' Michael Ng said.
Source: Businessinsider
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Shootingstar : Occulus 2 is so much better I can use it got 8 hours straight with battery pack support for seemless play
727727727 Shootingstar: Oculus 2 is junk. it's fine compared to not having a VR headset, but compared to any other one it's awful. Oculus 3 isn't much better. Oculus Pro is actually pretty good, so that's your only real "mass market" comparison to Apple's iGlasses (visionpro). Time will tell if the software will match the impressive, but seriously feature lacking, tech. My hunch is that it will take 2+ years - possibly a whole hardware iteration - for it to catch on (beyond fanboys) and by then the current batch of headsets will improve and have far better software libraries. Wait for the hands-on reviews. Unless there's an amazing WOW factor (which Oculus had because it was essentially first into the consumer space despite other better headsets already existing... it was most people's first be experience) it'll flop because of the price and limited usefulness. in other words iGlasses won't be on many kids Christmas lists this year or next imho...
Shootingstar 727727727: Thanks for sharing your insight I agree but at the moment the technology and apps are limited. there is not much need to invest heavily into this genre atm
Wildndn Shootingstar: ENVX