Apple (AAPL.O) launched the Vision Pro, a pricey augmented-reality headset, on Monday, entering a sector dominated by Meta (META.O).
Apple introduced a 15-inch MacBook Air, a powerful chip called M2 Ultra, iOS software updates, and a long-awaited fix to stop autocorrect from changing a common expletive to “ducking” at its annual developer conference.
The Vision Pro will cost $3,499, over three times Meta’s most expensive mixed and virtual reality headset.
After years of disputes over user privacy and developer platform control, the headset will compete with Facebook-owned Meta.
Apple promoted the headset’s augmented reality and sports and entertainment collaborations. In addition, apple claims its new R1 chip will process sensor data in a blink.
Wall Street, which had pushed Apple shares to a new high before the introduction, was unimpressed. As a result, the stock traded flat aftermarket.
“Wealthy, techie early adopters will buy the Vision Pro in droves, but still years to move the needle for the mammoth Apple,” said Wedgewood Partners chief investment manager David Rolfe, who has owned Apple stock since 2005.
Rolfe praised the headset’s technology but noted its limited market. Apple Vision Pro reminds me of early personal computers. PCs took years to become widespread. VisionPro too.”
Vision Pro users can use a three-dimensional camera and microphone system to capture films and photographs that can be watched in 3D later, choose content with their eyes, tap their fingers together to click, and gently flick to scroll.
The device’s outside display reveals the user’s eyes, distinguishing it from Meta’s headsets.
Immersed in a virtual realm, the outer screen becomes dark. In addition, when a person approaches a user in full virtual mode, the headset will show both the user and the outside person, an augmented reality improvement over Meta’s products, which only show the outside world.
“It’s the first Apple product you look through, not at,” stated Apple CEO Tim Cook. Apple’s headgear will launch in the U.S. early next year and in other nations in 2024.
According to IDC, investors will want to know how Apple’s view of virtual reality compares to Meta, which dominates almost 80% of the AR/VR device market.
Meta CEO Mark Zuckerberg envisions wearing headsets to enter and leave a “metaverse” where individuals can work, play, and spend. Apple execs avoided it.
“The core difference to me is Zuckerberg is trying to create a virtual world that he wants us to be in, and it seems to me that Apple wants to keep us still anchored in our world and just augment it,” said Creative Strategies analyst Carolina Milanesi.
Meta, Sony Group Corp (6758.T), and ByteDance-owned Pico make VR devices. IDC says these companies sold 8.8 million headsets last year.
