Technology
Friday, February 2nd, 2024 5:51 pm EDT
Key Points
- Vision Pro Launch and Pricing:
- Apple’s Vision Pro virtual reality headset officially launched in the U.S., with preordering customers beginning to receive or pick it up at Apple Store locations.
- Apple CEO Tim Cook, celebrating the release at the flagship Fifth Avenue store in New York City, defended the high starting price of $3,500, describing it as “tomorrow’s technology today.” Cook highlighted affordability through a monthly financing plan and emphasized the headset’s innovation, boasting about its 5,000 patents.
- Enterprise Embrace and Use Cases:
- Cook shared on Apple’s earnings call that the Vision Pro is gaining acceptance as an enterprise product, with companies like Walmart, Nike, Vanguard, Stryker, Bloomberg, and SAP leveraging and investing in the headset for customers and workers.
- Despite the enterprise focus, Cook believes Apple can maintain a dual focus on consumers and enterprises, citing the headset’s “ton of use cases.” He mentioned over 600 apps and games specifically designed for a “spatial computing” experience on the headset.
- Financial Performance and Wearables Business:
- Apple reported fiscal first-quarter results that surpassed revenue and earnings estimates, with the wearables business, known as “Other Products,” beating expectations. However, the wearables category saw an 11% YoY sales decline.
- The Vision Pro, joining the wearables category alongside the Apple Watch and AirPods, is not initially predicted by analysts to drive a significant amount of revenue despite being Apple’s first major release since the Apple Watch nine years ago.
Apple officially launched its Vision Pro virtual reality headset in the U.S., with preordering customers now receiving or picking up the device from Apple Store locations. Apple CEO Tim Cook celebrated the headset’s release at the flagship Fifth Avenue store in New York City, where he spoke to CNBC’s Jim Cramer about the high price tag, starting at $3,500. Cook defended the cost, referring to it as “tomorrow’s technology today” and highlighting a monthly financing plan to enhance affordability. He emphasized the headset’s innovation, boasting about its 5,000 patents and stating that Apple believes the pricing aligns with its value.
During Apple’s recent earnings call, Cook revealed that the Vision Pro is gaining traction as an enterprise product, with companies like Walmart, Nike, Vanguard, Stryker, Bloomberg, and SAP investing in the headset for both customers and workers. Cook expressed confidence that Apple can maintain a dual focus on consumers and enterprises, given the multitude of use cases for the Vision Pro. He mentioned over 600 apps and games designed for a “spatial computing” experience available on the headset. Despite the headset’s potential, analysts don’t anticipate an immediate significant revenue boost, even as it joins the wearables category alongside the Apple Watch and AirPods.
The Vision Pro marks Apple’s first major release since the Apple Watch nine years ago, and Cook’s emphasis on its enterprise applications aligns with Apple’s broader strategy to position itself in both consumer and business markets. The headset’s launch comes on the heels of Apple reporting fiscal first-quarter results that surpassed revenue and earnings estimates. While Apple’s wearables business exceeded expectations, experiencing an 11% YoY sales decline, the introduction of the Vision Pro adds a new dimension to Apple’s wearable offerings. As the tech giant continues to navigate and innovate in the competitive tech landscape, the Vision Pro serves as a notable step forward in its product portfolio.
For the full original article on CNBC, please click here: https://www.cnbc.com/2024/02/02/apples-vision-pro-headset-launches-in-us.html
