Apple’s highly anticipated Vision Pro quickly sold out after preorders opened on Friday, causing shipping times to increase to five to seven weeks within a matter of hours. However, according to top Apple analyst Ming-Chi Kuo of TF International Securities, these extended shipping times remained unchanged 48 hours after preorders opened. This could indicate a major concern for Apple – that demand may quickly taper off after the initial rush of core fans and heavy users placing their orders.
Kuo pointed out that popular iPhone models also sell out immediately upon pre-order, but their shipping times usually continue to increase for 24 to 48 hours after pre-orders open, suggesting that demand continues to grow even after the initial sell-out. This contrast with the Vision Pro’s stagnant shipping times could suggest a different trend for Apple’s new virtual reality headset.
Kuo initially forecasted that Apple would only produce between 60,000 and 80,000 units of the Vision Pro for its February 2 release. However, he now believes that Apple should be able to ship a total of 500,000 units this year, a significant increase from his initial estimate. On the other hand, analysts at Morgan Stanley predicted that Apple will likely ship 300,000 to 400,000 units of the Vision Pro in 2022, with potential for additional upside depending on the initial sell-through feedback.
While Wall Street analysts do not expect the $3,499 Vision Pro to provide an immediate significant revenue boost for Apple, they are closely monitoring the initial reception of this new product category. The success or failure of the Vision Pro could potentially signal its future potential for Apple.
Kuo emphasized that the Vision Pro is a very niche product at the moment. Its high price tag and virtual reality technology make it inaccessible to a wider audience. However, Apple’s decision to venture into this new product category shows their commitment to innovation and diversification.
The Uncertain Future of Vision Pro
The rapid sell-out of the Vision Pro coupled with the stagnant shipping times raises questions about the long-term demand for Apple’s virtual reality headset. Will the initial rush of dedicated Apple fans be enough to sustain the product’s success? Only time will tell if the Vision Pro will become a mainstream hit or remain a niche product within Apple’s lineup.
While the initial sell-out of Apple’s Vision Pro may seem impressive, there are indications that demand for the product may be waning. The stagnant shipping times after the sell-out raise concerns about the product’s long-term success. However, with Apple’s committed fanbase and dedication to innovation, the future of the Vision Pro remains uncertain but promising.
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