Apple Inc.’s Vision Pro Hits Stores, Analyst Reiterates Bullish Outlook
Hot on the heels of Apple Inc.’s Vision Pro hitting the shelves, a Wedbush analyst reiterated a bullish outlook on the stock. Analyst Daniel Ives noted a surge in customer interest, stating that customers are coming into Apple Stores with curiosity and intrigue for demos and purchases that have not been seen in many years.
The Vision Pro is a potential game changer, according to Ives, surpassing original Street expectations by a wide margin. Despite the high price point of $3,500, the latest hardware product from Apple is sparking mass-market appeal, surprising the analyst. Additionally, there are already 600 apps built for the product, which is a jaw-dropping number.
The strong reception over the weekend gives Wedbush confidence in its 2024 unit target of 600,000 for Vision Pro. Ives sees the Vision Pro as Apple’s initial foray into AI and anticipates a separate AI App Store announcement at WWDC this summer. He envisions the next version, Vision Pro 2, having sub-$2,000 pricing and evolving into form factors resembling sunglasses in the coming years. Ives projects over one million Vision Pro units as the initial sales target for FY25.
“This is just the start for Vision Pro,” said Ives, as he revealed that industry checks indicate the next version of Vision Pro 2 will have sub-$2,000 pricing. He believes that future Vision Pro models will resemble sunglasses and have much broader reach and functionality for Apple users down the road, with over one million units sold.
The analyst sees Vision Pro as Apple’s first step toward AI, with a separate AI App Store announcement likely coming at the WWDC this summer. Apple could incorporate AI into its iPhone 16, marking the start of a new frontier of growth for the company. While some on Wall Street may dismiss Vision Pro as noise, Ives strongly disagrees and believes it is the first step towards a much broader technology vision that Apple plans to push to its installed base in the coming years.
In terms of outlook and rating, Ives wrote that while Apple gave conservative March guidance with China headwinds causing concern, he views this as a small blip on the renaissance of growth ahead for Apple. He maintains an Outperform rating and a $250 price target for Apple stock.
Apple closed Friday’s session down 0.54% at $185.85. Despite this slight dip, Ives remains optimistic about Apple’s future performance and sees it as a table pounder tech stock to own.
In conclusion, the release of Apple’s Vision Pro has generated significant customer interest and has exceeded expectations. Analysts like Daniel Ives see this as just the beginning for Apple’s AI integration and believe that Vision Pro is the first step towards a much broader technology vision for the company. With a bullish outlook and strong market potential, Apple continues to be an attractive investment option.
