Apple's (AAPL) latest consumer technology, the Vision Pro mixed reality headset, is set to launch in the US on February 2nd. The starting price is his $3,499, and Wamsi Mohan, senior IT hardware analyst at Bank of America Securities, comments on future prices. This is something that could encourage Apple customers to buy more augmented/virtual reality devices.
“If you think about the size of the VR market, it's about 8.5 million units a year, about $4.5 billion,” Mohan said. “So Apple is already impacting their category in his first year.”
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Editor's note: This article was written by luke carberry morgan.
video transcript
– Apple's next big product, Wamsi, is the Vision Pro, a mixed reality headset. There are some analysts who say, listen, Rotifer, I don't think it's going to be a big problem economically in the short term. But in the long term, they are more optimistic. Where are you?
Vamsi Mohan: Yeah, it's weird to talk about economic insignificance when you can make $700, $800 million, right? That's the kind of numbers we're looking at, like 200,000 units at 3,500 to 4,000. Granted, that's not a big number in the context of a $400 billion company, but when considered individually, it's actually a big number. If you think about the size of the VR market, yeah, it's about 8 million units a year, about $4.5 billion. So in his first year, Apple is already making an impact on their category.
We think over time this will be a real game changer. Our idea is that anyone with a Mac could potentially own a Vision Pro at a price point of $1,500 to $2,000. We think we'll reach that price point within a few years. It can't happen right away. It will take some time. This gives us time to further improve app development for the many app ecosystems around Vision Pro.
But where we see the biggest opportunity is whether we can build an installed base of Vision Pros in the tens of millions. You can get very unique experiences of content, whether it's immersive concerts or sports that others have tried and failed at, but Apple can do something like that and then monetize it. You can pay $20, $30, $40.
I was in Las Vegas for the CES show and wanted to find out how much U2 tickets at Sphere cost. At Sphere in Las Vegas he was $750. I mean, she's $20, $30, $40 for an immersive experience, and I think consumers will definitely pay that. Add this to an installed base of tens of millions, and it's a huge opportunity for Apple.
