6 months ago • 2 mins
What’s going on here?
Apple unveiled its Vision Pro hardware this week, so it’ll only be a few months until you can watch your bank balance shrink from the comfort of a dystopian society.
What does this mean?
Apple’s CEO has been hailed as an operations genius since taking the shiny, minimalistic helm, pulling the goliath’s market value up from $350 billion in 2011 to $2.8 trillion today. And in a bid to keep the momentum, Apple launched its “mixed reality” headset this week: seven years in the making, the Vision Pro combines augmented reality with virtual reality. Gamers will be ready to click play on that bad boy, but Apple’s also set its sights on the workplace and hopes that software developers will whip up apps that could broaden the headset's capabilities. So with the potential to revolutionize both work and play, analysts are anticipating the Vision Pro will make up a hefty chunk of Apple’s sales within the next five years.
Why should I care?
The bigger picture: A mega Quest.
Apple’s taking a massive risk here. At $3,499, the headset’s twelve times pricier than the current bestseller, Meta’s Quest 2. That’s a steep price tag for some souped-up ski goggles, and even Meta’s struggled to make its cheaper version mainstream. And while Apple did redefine an industry when it launched the iPhone, it’ll be a lot harder to disrupt a sector that even tech heads aren’t fully sold on yet.
For markets: Another mighty price.
Apple’s shares fell after the news, possibly because of that tear-jerking price tag. But they’re still in a lofty position: investors have been trusting Apple – with its solid revenue streams – as a safe haven to ride out these uncertain times, propelling its market value to more than the entire Russell 2000 index. But with the stock looking fairly expensive compared to the market and its own history, some reckon there could be a pullback to come.
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