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Innovation is alive in Cupertino California…
Just look at Apple’s Vision Pro.
Fans lined up to demo and purchase the new virtual reality headset at Apple Stores.
This is a major breakthrough for Apple.
Frankly, it sets the company on path to dominate both VR and Artificial Intelligence in the coming years.
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Here are a few thoughts on what the Vision Pro means for Apple – and its shareholders.
1. Apple Fans Are Excited
The company sold 200,000 Vision Pros during its pre-sale, according to MacRumors.
That’s $700 million of pre-orders…
Before anyone got to see the product.
Analysts predict that Apple might sell 400,000 – 600,000 units this year – generating sales of around $1.75 billion.
That’s around 0.5% of the company’s total sales.
So, this really doesn’t move the needle on Apple’s financials this year.
More importantly this sets the stage for a major new product category.
2. $3,500 price limits adoption
There’s a lot of excitement for this device.
Yet the Vision Pro is being purchased mostly by well-off Apple fanatics.
The new device is a breakthrough in VR – competing with Meta’s Quest 2 or Oculus.
The price will need to get below $2,000 to encourage more widespread adoption.
To go mainstream they’ve got to get the price below $1,000.
3. This could be a $100 billion opportunity
People tend to under-estimate Apple.
I was listening to the All-In Podcast this weekend. Host David Friedberg explains…
That Apple could sell 30 million units over the next 5-years – even if the price was $3,500.
That would create a $100 billion opportunity for Apple.
The point is that it’s early days for the Vision Pro.
We’re going to see huge advances with new versions in the coming years. Plus, we’ll see expansion of the app store and new business uses for the device.
Is Apple an overlooked Artificial Intelligence play for 2024?
Ian
P.S. Will you buy the Apple Vision Pro? Will it will be a success or a failure?