Apple 'renaissance' inbound after Vision Pro launch success

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in AAPL Investors

The launch of the Apple Vision Pro signals a potential "product renaissance" for the company, Wedbush analysts believe, with the hardware also Apple's first step towards introducing an AI App Store.

Apple Vision Pro on an in-store demonstration tray
Apple Vision Pro on an in-store demonstration tray



The excitement surrounding the first weekend after the Apple Vision Pro's release is a massive upswing for Apple, analysts at Wedbush propose, with customers visiting the store with a "curiosity and intrigue for demos and purchases" that the firm hasn't "seen in years."

"We believe Apple Vision Pro is a potential game changer over the coming years and Cupertino has found clear success with this next generation form factor surpassing by a wide margin original Street expectations," Wedbush's Sunday note to investors seen by AppleInsider reads.

While burdened with a high price point and a "limited audience outside of developers," Wedbush is "surprised at the early mass market appeal Vision Pro is sparking." The initial 600 available apps made for visionOS is a "jaw dropper" and "well above expectations."

"We believe Apple Vision Pro is a potential game changer over the coming years and Cupertino has found clear success with this next generation form factor surpassing by a wide margin original Street expectations," analysts write.

This is "just the start for Vision Pro," the note continues, with industry checks leading to the belief that the second-generation model could be below $2,000, and maybe involving three model releases, as "Apple looks to push more aggressively towards its golden installed base."

The speculation of future models in the note takes the form of the often-claimed smartglasses, with "form factors that look like sunglasses" expected in the coming years. As for the Apple Vision Pro, sales are forecast to reach over 1 million units for 2025.

An AI agenda



The Apple Vision Pro is also "the first step to Apple pushing into AI and eventually a separate AI App Store," Wedbush feels, with Apple anticipated to internally discuss at WWDC. Apple CEO Tim Cook's comments on AI were picked up by the analysts, along with plans for announcements later in 2024.

"We also believe Apple will incorporate generative AI into iPhone 16 and this will mark the start of a new frontier of growth for the golden installed base of Cupertino," the note continues.

The ultimate goal for Apple is for the Vision Pro to work alongside the iPhone and other Apple devices in the coming years, "with many consumer AI use cases set to explode across health, fitness, sports content, and autonomous."

Observing other Wall Street commentators as "dismissing Vision Pro as noise," Wedbush strongly disagrees, believing it is the "first step towards a much broader technology vision that Cook & Co. plan to push to its installed base over the coming years."

A "renaissance of growth" is predicted for Apple over the next 12 to 18 months, with the company remaining "a table pounder tech stock to own."

Wedbush maintains its "Outperform" rating of Apple, and a $250 price target.



Read on AppleInsider

Comments

  • Reply 1 of 10
    jdwjdw Posts: 1,337member
    Yet another "app store" for gold-digging lawyers, governments and developers to go after to demand a larger slice of whatever pie Apple decides to present to them?


    40domiwatto_cobra
  • Reply 2 of 10
    chasmchasm Posts: 3,303member
    I agree that the company is undergoing a bit of a re-flowering, though maybe "renaissance" is too strong a word.

    It's certainly true that the Vision Pro is Apple's first completely new "major hardware product" category (that wasn't a derivative or variation of an existing product) in years. We also expect to see (perhaps as early as this year or next) major refreshes of at least some existing iPad and Mac lines, possibly including a foldable, and then there's that in-house 5G modem coming ... someday ... and likely to be incorporated in MacBooks along with the iPhone/iPad. Then there's that car they're not building, but more importantly the expanded CarPlay control they ARE building ... and there are hints that future versions of iOS/iPadOS and macOS may also be getting a shakeup in the years ahead ...

    That all of this looks to come along over the course of this year and next makes this mid-decade a great time to become or be an Apple customer, and may well turn out to be another golden era for the engineering team. I'm happy to see the company shooting for some new goals and still managing to iterate their existing products' software as well.

    Maybe Apple CAN walk and chew gum at the same time, after all! :)
    Grizzmickbyronl40domiwatto_cobra
  • Reply 3 of 10
    News from a store...

    If you want to see a pile of people with sore throats and who are very tired, but also very proud... go to an Apple Store and find everyone in a blue shirt that spent the weekend doing AVP demos or just answering questions about it to a constant flow of customers.   

    No, stores were not busy like an iPhone launch, this was different.  But there was a ton of traffic, just more measured and not as frantic.  Like those of us in those blue shirts, the customers- those buying, those taking the demo, and those just curious to see this new thing- were amazing and smiling throughout it all.  

    This is more than just a new product, it's a new everything.  
    badmonkforegoneconclusion40domiroundaboutnowwatto_cobra
  • Reply 4 of 10
    larryalarrya Posts: 606member
    “We believe Apple Vision Pro is a potential game changer over the coming years and Cupertino has found clear success with this next generation form factor surpassing by a wide margin original Street expectations," 

    Clear success?  Not yet, but TBD. 
    Wall Street? Not supported by actual stock prices. 
    nubuswilliamlondonwatto_cobra
  • Reply 5 of 10
    badmonkbadmonk Posts: 1,295member
    I think the best thing Apple can do to promote AVP is make sure all AppleTV media (including) sporting events have a 3-D (and preferably Immersive) content offering with the little AVP icon.  Longer term, getting the ability to get influencer content to AVP will be a challenge with the stranglehold of YouTube, Meta and Tick Tock.

    After. having experienced the AVP demo, I think the devs will ensure commercial, medical and disability uses but the broader consumer market will need to have consumable media beyond porn.
    byronlwatto_cobra
  • Reply 6 of 10
    wtf is an AI App Store?
    watto_cobra
  • Reply 7 of 10
    blastdoorblastdoor Posts: 3,292member
    Respite said:
    wtf is an AI App Store?
    I’m guessing it’s a venue for purchasing subscriptions to an AI focused on a specific domain. 

    Monetizing AI by paying to “unlock” capabilities one at a time could be lucrative.
    byronl
  • Reply 8 of 10
    blastdoorblastdoor Posts: 3,292member
    Regarding AI, I wonder if Apple might “hard wire” a portion of their GPT model into silicon. That could make it easier to implement a powerful GPT on a phone. It’s also another example of the benefits of integrating hardware and software.
    watto_cobra
  • Reply 9 of 10
    “Cupertino has found clear success with this next generation form factor surpassing by a wide margin original Street expectations,”

    You don’t say. The anallists got their predictions wrong? No surprises here. 
    40domiwatto_cobra
  • Reply 10 of 10
    blastdoor said:
    Regarding AI, I wonder if Apple might “hard wire” a portion of their GPT model into silicon. That could make it easier to implement a powerful GPT on a phone. It’s also another example of the benefits of integrating hardware and software.
    Apple published a research article that detailed how to they made an LLM on device rather than a cloud service. I think it was a MacBook in that case.
    watto_cobra
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