Apple’s Vision Pro Headset Receives Mixed Reviews, Dredging Stock Value

Apple‘s Vision Pro Headset Receives Mixed Reviews, Causes Stock to Drop

Apple‘s new mixed-reality headset, Vision Pro, received mixed reviews, causing stocks to drop as investors evaluate the prospect of the company’s computer eyewear. The device was described by Apple as “a revolutionary spatial computer that seamlessly blends digital content with the physical world” and is packed with cutting-edge technology combining virtual and augmented reality.

The Device’s Features and Pricing

Vision Pro is retailing at $3,499 and will go on sale in early 2024. Most analysts had expected the device to cost about $3,000 and go on sale later this year. The headset has 12 cameras, five sensors, and six microphones. It also has an ultra-high-resolution display system and a dual-chip design and charged for all-day use that comes with an external battery that allows up to two hours of use.

Analyst Reviews and Stock Value

The device has received mixed reviews on social media, with some calling it “nerd goggles” while others described it as a revolutionary device. Consequently, Apple‘s stock value has dropped. CFRA Research Analyst Angelo Zino commented that Apple failed to identify why it’s a must-have device for consumers, at least for now. Although the Vision Pro is technologically impressive, it doesn’t have a compelling use case, according to Jefferies Analyst, Andrew Uerkwitz.

Analysts’ Rating on Apple Stock

D.A. Davidson Analyst Tom Forte, downgraded Apple stock to neutral from buy after the Vision Pro launch. He believes there is a significant structural challenge for the company in consumer adoption of AR/VR hardware that could limit its sales and profitability. On the other hand, Morgan Stanley Analyst Erik Woodring is cautiously optimistic about the Vision Pro and rates Apple stock as overweight or buy, with a price target of 190. He looks forward to October as a potential catalyst to gain better clarity on initial volumes, yields, “killer apps,” and launch timing.

The Bottom Line on Apple‘s Vision Pro

The Vision Pro is a long-term “show-me” story until it can establish a killer app. Apple‘s inability to identify a compelling reason for consumers to own the device at the moment could limit sales prospects. Nonetheless, Apple‘s technological capacity to develop the device is impressive. Analysts suggest it is an excellent device to watch in the coming days. Investors and the tech industry will be keen on how Apple will respond, given the mixed reception towards its Vision Pro headset.