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Apple (Nasdaq: ) opened pre-orders for its virtual reality (VR) headset Vision Pro on January 19, with the technology company sold roughly 200,000 units since then. While that may seem promising, one analyst thinks the demand is not strong enough.
Vision Pro Demand “May Quickly Taper Off,” Analyst Says
According to a report by MacRumors, Apple has sold over 200,000 Vision Pro headsets in the past ten days, after the product became available for pre-orders on January 19.Although this figure may initially seem impressive, Apple analyst Ming-Chi Kuo believes the VR headset didn’t sell out fast enough. According to his estimates, the tech giant sold between 160,000 and 180,000 Vision Pro units; however, “shipping times remained unchanged 48 hours after pre-orders opened,” said Kuo in his recent analysis.
“It indicates that demand may quickly taper off after the core fans and heavy users place their orders.”
– he added.
The $3,500 VR product sold out for launch day home delivery shortly after pre-orders opened, and in-store pickup options also filled up quickly. As a result, it shouldn’t be surprising that interest in the headset has tapered off a bit following the initial surge of orders.Unlike Vision Pro, popular iPhone models sell out right after becoming available for pre-order, “and shipping times typically increase to several weeks within hours,” said Kuo.Still, the analyst believes Vision Pro can reach sales of 500,000 units due to its large user base of 1.2 billion. He suggests that the Vision Pro could sell out if just 0.007% of users buy after pre-ordering. On the other hand, he acknowledges that this makes the headset “a very niche product.”Earlier this month, Morgan Stanley analysts noted that Vision Pro could in revenue by fiscal year 2027 with a conservative estimate. However, they added that if it attains a 1% penetration rate among current iPhone users within five years, revenue potential could skyrocket to $40 billion.
Apple Underperforming S&P 500 After Tough Start to 2024
After closing 0.36% lower a day earlier, Apple’s shares were down around 0.7% in premarket trading Tuesday.The iPhone maker has witnessed a tough start to the year, primarily due to and a more challenging landscape in China amid regulatory scrutiny and intensifying competition. These concerns have led to a by Wall Street analysts, putting further pressure on Apple’s shares and allowing Microsoft to .Still, the stock remains 3.2% up year-to-date, slightly underperforming the broader . The company is scheduled to report its earnings for the December quarter on February 1.More By This Author:
