Dan Ives, an analyst at Wedbush Securities, a well-known U.S. investment bank, recently said that the official launch of Vision Pro this Friday will be a "historic moment" for Apple, marking the company's first real entry into the field of AI.
The $3,500 headset is Apple's first new product since the launch of AirPods in 2016 and its first new computing device since the launch of the Apple Watch in 2015, marking the beginning of the company's push into what it calls "spatial computing."
Although VisionPro has attracted much attention from global technology users and industries, its high price is also beyond the affordability of many consumers. Some analysts worry that this may affect demand for the product.
In this regard, Ives pointed out that the price of the next generation of VisionPro products will be significantly reduced.
"Our industry research suggests that the next generation Vision Pro 2 will be priced much lower, under $2,000 (likely 2-3 models will be released), as Apple looks to more aggressively drive growth in its prime user base," Ives wrote in a report on Tuesday.
The "golden user base" Ives refers to is Apple's more than 1 billion iPhone users. Wall Street estimates that if Apple could convert 1% of iPhone users into Vision Pro users, it would generate enough revenue to have a significant impact on the company's bottom line.
Ives raised VisionPro's 2024 sales forecast to more than 600,000 units from the previous 460,000 units. He also predicts that VisionPro sales will exceed 1 million units in 2025.
"We also believe that over the next few years, the VisionPro form factor will be similar to sunglasses and provide broader coverage/functionality for Apple users, and our initial sales target for VisionPro in fiscal 2025 is more than 1 million units," Ives wrote.
A person familiar with Apple's sales data told the media on January 30 that Apple has sold more than 200,000 Vision Pro headsets.
According to Apple’s previously announced sales arrangements, VisionPro will begin accepting pre-orders on January 19th and will be officially released on Friday (February 2nd).
Apple stock price can rise another 30%
Ives believes that the real appeal of Vision Pro is that it will become a platform for Apple to realize its AI ambitions. This product will eventually help Apple's stock price rise to $250, with more than 30% upside potential from current levels.
On Tuesday, Apple shares closed down 1.92% at $188.04.
"This is Apple's first step into the field of AI. We expect Apple to discuss the establishment of an independent AI application store at the WWDC conference this summer." Ives explained. "We believe that Apple's ultimate goal is that VisionPro will be used with iPhone and other Apple devices in the next few years, and many consumer AI use cases will explode in the fields of health, fitness, sports content and autonomous driving."
Ives reiterated his "outperform" rating on Apple stock. The company will release first-quarter earnings after the U.S. market closes on Thursday.