Apple’s recently launched Vision Pro, a virtual reality headset, quickly sold out after preorders opened on Friday, leading to extended shipping times within hours. While initial estimates by top Apple analyst Ming-Chi Kuo of TF International Securities suggested that Apple sold between 160,000 to 180,000 units over the weekend, Kuo expressed concern about the unchanged shipping times 48 hours after preorders, indicating a potential tapering off of demand.
The Apple Vision Pro, priced at $3,499, is Apple’s foray into the virtual reality space, offering an immersive experience to users. However, there is a significant difference in the demand pattern compared to popular iPhone models.
Typically, popular iPhone models continue steadily increasing shipping times even after the initial sell-out, signaling sustained demand. In contrast, the Apple Vision Pro’s shipping times remained constant, prompting a major concern about potential waning demand, especially after core fans and heavy users had already placed orders.
Kuo suggested that it “should not be challenging” for Apple to ship 500,000 Vision Pro units this year, a substantial increase from his initial forecast of 60,000 to 80,000 units for the product’s February 2 release. Despite the initial sell-out, analysts at Morgan Stanley projected that Apple might ship 300,000 to 400,000 units of the virtual reality headset in 2024, with the potential for further upside based on initial sell-through feedback.
While the Apple Vision Pro’s rapid sell-out is a positive indicator of initial interest, Wall Street analysts are cautious about expecting a significant revenue boost for Apple immediately. Instead, they closely monitor how the product’s reception in this new category could signal its long-term potential.
The extended shipping times highlight the uncertainty surrounding sustained demand for the Vision Pro and its impact on Apple’s future in the virtual reality market. As the tech giant delves deeper into immersive technologies, market dynamics, and consumer feedback will play a crucial role in shaping the trajectory of its ventures in this evolving space.
