Initial signs point to strong demand for Apple Vision Pro – analyst
Apple on Friday began taking pre-orders for the Vision Pro, the company’s new mixed-reality headset, which starts shipping to buyers on February 2nd. Delivery date quickly slipped into March, just minutes after pre-orders began.
Eric J. Savitz for Barron’s:
Evercore ISI analyst Amit Daryanani wrote in a brief research note Friday that “initial signs” point to strong demand for the device. “Our experience with purchasing a Vision Pro this morning leads us to believe demand for the product is strong relative to Apple’s expectations,” he writes.
“We logged into the Apple Store at 5 a.m. PT, right when the product first went on sale, and initially saw an offer to pick up in-store on 2/4,” the analyst writes. “By the time we had clicked through the options and completed the face scan, in store pick up was no longer available and the earliest delivery for the cheapest 256GB option was 2/14. We selected the $400 more expensive 1TB option to secure a pick up on 2/5. When we checked again an hour later, delivery times were up to a range of 3/1-3/8. We think this suggests relatively strong initial demand, although we do concede that Apple has likely planned for limited volumes in the first year.”
Daryanani writes that he has seen media reports that Apple plans to produce 400,000 to 1 million units in 2024. At the high end of the range – which I would note is way above most Street estimates – the device would add $3.5 billion in sales and a nickel a share in profits. The analyst thinks over five years Vision Pro can reach $19 billion in revenue and 20 cents a share in profits. The challenge, as Daryanani notes, will be for Apple to bring Vision Pro down the price curve to make it more appealing to a wide audience.
MacDailyNews Take: We shall see. Once word of mouth really begins starting February 2nd, we’ll have a better feeling about how sustained demand might proceed.
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