Ming-Chi Kuo: Investors should be cautious about Apple Vision Pro launch hype
Malcolm OwenApple Vision Pro at Apple Park
TF Securities analyst Ming-Chi Kuo is cautioning investors about the hype surrounding the Apple Vision Pro launch, saying that if the headset doesn't sell out at first, it may be a longer road to success than anticipated.
On Monday, Apple confirmed the release date of the Apple Vision Pro will be February 2 in the United States. After the announcement, Apple observer Ming-Chi Kuo told investors to be cautious about the launch and their expectations for success.
In a Medium post early on Tuesday, Kuo initially says that Apple did showcase the technology well at its introduction, but "left out more important information about the product's position and key applications."
If Apple could offer more information in these areas, Kuo writes, "it would help maintain sales momentum and attract more developers."
Kuo reckons that hype for the headset should mean the Apple Vision Pro will sell out after pre-orders open or when it goes on sale, in turn lengthening shipping times. However, if it doesn't, Kuo believes "Vision Pro may take longer to become a success, which would be detrimental to the short-term stock price performance of Apple and its supply chain."
There is praise for the specifications and software being "well above the industry average," which should earn "high praise" from users. Kuo then warns that the novelty and demand could wear off "depending on whether Vision Pro's product positioning and key applications are clear and correct."
It's not clear why Kuo holds this viewpoint. The Apple Watch was not an incredible success at launch, and it took an iteration or two to capture the market. Apple clearly has the money to wait out a less-than-successful product at launch, and has done so with Apple TV+ and the re-release of the larger HomePod.
Andrew Orr
Mike Wuerthele and Malcolm Owen
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19 Comments
“It's not clear why Kuo holds this viewpoint. The Apple Watch was not an incredible success at launch” - huh? it’s perfectly clear why he’s saying it - you even quoted
him: “…which would be detrimental to the short-term stock price performance”. He’s giving investors advice - see your own title!
if you’re going to go back to Apple Watch and Apple TV, make it relevant and tell us if AAPL stock was not affected in those cases.
Right now it's just about getting the Vision Pro to developers. I still think Vision Pro will be stuck in a vertical market niche of gamers and entertainment industry. I ask my friends who say 'this is the most amazing thing since sliced bread do you still go to 3D movies?' Almost every reviewer so far says after wearing it for more than 30 minutes you want to take it off. it's too heavy. Maybe future ones will weight less but still you get used to the special effects and it's not special anymore just like 3D movies. Anyway the jury is out until next year.
This product launch will be interesting. I’m trying to understand the point of VR products, other than gaming or some kind of simulator training. Just finding it hard to believe this is a mass market product. I’m thinking niche market here. Asking people to sit around or stand around with a computer strapped to their heads is a really big ask. Besides, i think wearing it may be bad for the wearers hair.