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Ming-Chi Kuo: Investors should be cautious about Apple Vision Pro launch hype

Apple 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.