The first weekend of availability for Apple Vision Pro saw consumers lined up at Apple retail stores to try out the new spatial computing headset.
Wall Street analysts say the innovative new device is a positive for Apple's brand but sales are expected to be limited by its high price.
The Apple Vision Pro went on sale on Friday after two weeks of preorders. The mixed-reality headset starts at $3,499.
"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," Wedbush Securities analyst Daniel Ives said in a client note. "We believe Apple Vision Pro is a potential game-changer over the coming years."
Apple Vision Pro More Than Just 'Noise'
Ives predicted that Apple will sell 600,000 units of Apple Vision Pro in 2024. Before preorders began, he had forecast 460,000 units.
"While many on the Street are dismissing Vision Pro as noise, we strongly disagree and believe it's the first step toward a much broader technology vision that (Chief Executive Tim) Cook & Co. plan to push to its installed base over the coming years," he said.
Ives rates Apple stock as outperform with a 12-month price target of 250.
On the stock market today, Apple stock rose 1% to close at 187.68.
Meanwhile, Apple stock has formed a flat base with a buy point of 199.62, according to IBD MarketSmith charts.
Cheaper Version Not Seen Until 2026
BofA Securities analyst Wamsi Mohan also was upbeat about prospects for the Apple Vision Pro.
"Despite some concerns, we think Vision Pro could be a significant new category for Apple," Mohan said in a client note. "Vision Pro will offer a differentiated experience for sports and entertainment, productivity, health and fitness, and retail."
Mohan rates Apple stock as buy with a price target of 225.
Mohan predicts that Apple will sell 400,000 units of Apple Vision Pro in 2024 and 1 million units in 2025. He envisions Apple coming out with a $2,000 version of the device in 2026, leading to sales of 4 million units that year.
Apple Vision Pro Has 'Wow' Factor
UBS analyst David Vogt said his firsthand tryout of the device left him impressed.
"While the demo only lasted 25-30 minutes and was highly scripted/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 tracking, as well as 3D mapping of one's surroundings 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 units of Apple Vision Pro in its fiscal 2024, which started Oct. 1.
"The uniqueness and 'wow' factor of the technology" will likely resonate with the Apple faithful, Vogt said. However, its steep price will limit demand, he said.
"One of the most obvious use cases for the technology after demoing it is sports and entertainment," Vogt said. "The immersive video technology creates a sense or feeling that the user is actually present whether it is a live music event, a baseball game, or some other experience like mountain climbing."
Vogt rates Apple stock as neutral with a price target of 190.
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