Why Apple's Vision Pro Could Be a Game Changer

Apple's (AAPL) Vision Pro could be a "game changer" for the iPhone maker, Wedbush analysts said, after the spatial computing headset launched in stores Friday.

Highlighting the headset's "early mass market appeal" and a strong reception
in its first weekend in stores, Wedbush analysts said Apple "has found clear success with this next generation form factor surpassing by a wide margin original Street expectations."

They added that the Vision Pro could be "the first step to Apple pushing into AI" and that the headset will "work alongside the iPhone and other Apple devices over the coming years with many consumer AI use cases set to explode across health, fitness, sports content, and autonomous."

The Vision Pro sets Apple up to compete with Meta's (META) Quest 3 headset, which led the augmented reality market in 2023, according to the International Data Corporation.

Wedbush said the Vision Pro's price point could be a hurdle for Apple, as the Vision Pro starts at around $3,499, while the Quest 3 starts at $500. However, both Wedbush and Bank of America analysts called the Vision Pro a "unique" product expected to add value for Apple investors.

Bank of America analysts said they tested the Vision Pro, and "walked away positively from the overall extremely unique and immersive experience," though they noted "typical hurdles faced by most first generation products also hold for the Vision Pro (weight and battery life)."

Bank of America analysts estimate that the Vision Pro could add 68-89 cents per share to Apple's earnings per share (EPS) in the next 5 years. The firm also reiterated it anticipates a multi-year iPhone upgrade cycle driven by generative AI could be coming.

Apple shares were up 1.2% at $188.15 per share as of about 3:40 p.m. ET Monday. They've gained about 24% over the past year.