Apple enthusiasts and investors alike were excited about the launch of the Vision Pro, the company’s foray into mixed reality headsets. However, a recent analyst report by Ming-Chi Kuo casts a shadow over the product’s future.
Sharp Drop in Demand: According to Kuo, Apple has significantly slashed its 2024 Vision Pro shipment estimates. Initial projections placed shipments between 700,000 and 800,000 units. Now, Apple anticipates shipping a mere 400,000 to 450,000 units. This drastic reduction suggests a much weaker than expected demand for the Vision Pro, especially concerning since it hasn’t even launched internationally yet.
Tepid International Launch: Kuo reports that Apple’s initial plan involved introducing the Vision Pro in additional countries before their Worldwide Developers Conference (WWDC) in June. However, due to the lower-than-anticipated US demand, Apple seems to be taking a more cautious approach to the international rollout.
Strategic Rethink: This development has reportedly prompted Apple to re-evaluate its entire mixed reality headset strategy. Previously, analysts expected a second-generation Vision Pro to launch in 2025. However, Kuo now suggests this might be off the table entirely. Additionally, Apple is now forecasting a year-over-year decline in Vision Pro shipments for 2025.
Investment Implications: For investors who placed bets on the success of the Vision Pro, this news is concerning. The significantly lower demand and potential delays in future iterations suggest the product might not be the initial success story many anticipated. Investors holding Apple stock should closely monitor developments surrounding the Vision Pro and its impact on the company’s overall mixed reality strategy.
Stay tuned for further updates as the situation unfolds.
