Apple’s recently launched mixed reality (MR) device, the Apple Vision Pro, has the potential to disrupt not only Meta Platforms’ MR device, but also Apple’s other computing devices. The question is whether the device will pave the way for the post-iPhone era and form a new category within Apple’s wearables segment to rival the popularity of the Apple Watch. CEO Tim Cook’s “spatial computing” may herald a new era for Apple’s computing platform, but it is still early days for investors to be excited.
While Apple Vision Pro has received rave reviews from the financial and tech media, with several commentators even suggesting it could be more successful than the Apple Watch, its price point of $3.5k means it is not likely to compete directly with Meta’s device, priced at a revised $1k. Both companies have vastly different go-to-market approaches, and it remains to be seen which is the better strategy.
Although Apple seems willing to allow Meta to dominate the mass MR market over the next few years, some analysts predict that Vision Pro could account for 10% of Apple’s full-year revenue, with estimates suggesting that Apple could sell 75m Vision units by 2030. While this is impressive, it is unlikely to replace the iPhone, which remains Apple’s primary revenue driver and valuation support. And given its price point, it is still too early to replicate the success of the Apple Watch.
Ultimately, while the Apple Vision Pro is an exciting new product, with the potential to transform the MR market, it is too soon to predict its long-term success. Investors should do their own due diligence and not rely on the information provided as financial advice. The rating is also not intended to time a specific entry/exit at the point of writing unless otherwise specified.
