Consumer electronics giant Apple on Monday introduced its long-awaited mixed-reality headset called Vision Pro — its first new hardware platform in more than eight years. Apple stock hit a record high ahead of the announcement at the company's Worldwide Developers Conference, known as WWDC.
Designed for entertainment, communications and productivity applications, the device combines virtual reality with augmented reality and will compete with gadgets from rivals led by Facebook parent Meta Platforms. Apple's last new hardware platform was the Apple Watch, which debuted in April 2015.
Vision Pro looks like a sleek pair of ski goggles. It can play virtual-reality content and simulate augmented reality using video pass-through to show the real world. Also, an external display shows the user's eyes.
"It's the first Apple product you look through and not at," Apple Chief Executive Tim Cook said in a keynote presentation. "We believe Apple Vision Pro is a revolutionary product."
Apple stock started the day in positive territory but trailed off as the WWDC keynote progressed. Apple stock turned negative after the two-hour keynote finished.
Headset More Expensive Than Predicted
Many details of the long-rumored product were revealed in news leaks ahead of the event. But news reports were wrong about the product name and its price.
Vision Pro will sell for $3,499 and be available early next year. Analysts had expected the headset to cost about $3,000. The rumored name was Reality Pro.
Vision Pro features a physical dial to switch between virtual reality and real life. The computer eyewear sports dual high-definition displays and is packed with about two dozen cameras and sensors. Users control the device with hand gestures, eye movements and voice controls. No clumsy handheld controllers required.
During the presentation, Apple demonstrated how Vision Pro could be used for video conference calls and operating multiple virtual computer screens. It also showed users playing games and watching movies with the headset.
Cook described Vision Pro as a spatial computing device and augmented reality platform.
Apple Introduces New Mac Computers
Apple kicked off WWDC at 10 a.m. Pacific time with a keynote presentation. The company is holding the conference this week at its Cupertino, Calif., headquarters.
The presentation started with the introduction of new Mac computers, including a 15-inch MacBook Air notebook. The company also introduced second-generation versions of its Mac Studio desktop computer and a new Mac Pro desktop powered by Apple Silicon processors.
At WWDC, Apple updated software developers on its latest operating systems for iPhone, iPad, Mac, Apple TV and Apple Watch.
Those software updates included iOS 17 for the iPhone. Enhancements with iOS 17 include the ability to leave FaceTime video messages and receive live transcriptions for incoming voicemail messages.
Apple Stock Falls After WWDC Keynote
In midday trades on the stock market today, Apple stock touched an all-time high of 184.95. Apple shares hit their previous record high of 182.94 in January 2022.
Apple stock ended the regular session Monday down 0.8% to 179.58.
Ahead of WWDC, Morgan Stanley analyst Erik Woodring upped his price target on Apple stock to 190 from 185 and kept his overweight rating.
"AR/VR has the potential to become Apple's next $20 billion-plus compute platform," Woodring said in a note to clients Friday.
Evercore ISI analyst Amit Daryanani maintained his outperform rating on Apple stock and raised his price target to 210 from 190 on Sunday.
Daryanani expects a slow ramp for Apple's mixed-reality headset, given its high price. In his note to clients, he forecast sales of more than 10 million units in the first five years.
Apple Stock Gets Buy Ratings On AR Prospects
Rosenblatt Securities analyst Barton Crockett reiterated his buy rating on Apple stock with a price target of 198.
In a note Monday, he said "the bar is set low" for Apple's mixed-reality headset.
"Nobody expects this to be a financially meaningful product near-term," Crockett said. "But the hope is that it will look like an interesting effort that can gain momentum over time."
Meanwhile, Wedbush Securities analyst Daniel Ives kept his outperform rating on Apple stock with a price target of 205.
"While other AR headsets have shown tepid success, such as Meta's Quest, we believe Apple's Reality Pro will come with many apps and use cases that will distinguish this new product within the Cupertino hardware arsenal," Ives said in a note Sunday.
Ives predicted initial shipments of roughly 150,000 units in year one for the headset.
Follow Patrick Seitz on Twitter at @IBD_PSeitz for more stories on consumer technology, software and semiconductor stocks.
