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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Pfft, For $3500, Nope. At Todays’ Economy someone is smoking something.
You likely can’t remember but that the original Mac (128 k “Thin Man Mac) plus the original ImageWriter printer on day one would be approximately $7,000 today (when adjusted for inflation).
I do believe that this first version at $3,500 is far out of reach for the average user, but so was the original Mac. The price point for the niche market for which it is currently targeted is not completely unreasonable.
The Mac (and relevant printers) has come down in relative price (ignoring the stratospheric versions of the 2019 Mac Pro) and vastly increased capabilities. I expect the Vision Pro to do the same over the next several years.
It’s such a chick magnet! 😉
With this – who needs chicks?
Wish Trump’s father had one…
Ordered mine. It arrives February 2nd. The cost is far less than I paid in 1984 for my 128K Macintosh, 400K floppy disk for OS, APP, and storage, 9 inch gray scale built-in monitor, and mouse-driven graphic interface, which was a revolution in computing. Pretty exciting to see computing change again. It is not surprising that it is Apple doing it. Will the second or third generation be better? It sure will, and if I am on the earth still, I will simply upgrade and give the current version to someone. Why miss out for two years waiting to save $1000?
This is a brilliant strategy by Apple. Apple is smart. Introducing a less capable $2500 version would have still been called expensive. By introducing the higher priced Pro model first, the $2500 version will be hailed as inexpensive, even if less capable then the corresponding Pro. The $2500 version will likely have many of the same features as the current version, and likely even sport an M3. It will not have the features of the new Pro, which will be more advanced than version 1. My guess is that future “Pro” versions will retain the higher price point. Eventually, both will be more affordable and ubiquitous in whatever design evolves. The 1984 Mac would be about $7400 in today’s dollars; conversely, the entry M1 MacBook Air would be about $340, the base M3 Pro MacBook Pro about $680 in 1984 dollars.
Combining the AVP with the upcoming Apple LLM OS implementations will be truly game changing. These are very exciting times. Time and technology marches on, buckle your seat belts.
Which storage option did you choose? Did you add AppleCare and any accessories? The 1TB model ai wanted with AppleCare and the travel case was over $5k so I will wait for now.
if they lowered the price by $1000, how many more would they sell?
Of course the price will go down with future models and production ramps up. Rumor is it cost Apple over 2800 to produce each Vision Pro. And as the price goes down adoption will go up.
Apple vision OS has the potential to exceed iPhones in both usage and profitability. If early reports that it’s the future of computing, then as these evolve and become more affordable then most everyone will have to have one. And since Apple is the world leader in integrating hardware and software, it will be near impossible for competitors to match the vision OS / Vision Pro combo punch. This is how AAPL reaches 4 trillion market cap.
this