Apple's High-Priced Vision Pro Is No Issue: A 'Flex The Muscles Moment' Says Dan Ives

Apple Inc (NASDAQ:AAPL) on Monday took tech by storm once again with the debut of the much-anticipated Vision Pro mixed reality headset during its Worldwide Developers Conference (WWDC) 2023.

The brand-new computing platform, along with a slew of other product announcements, underscored the tech giant’s ongoing commitment to reshaping the future of computing.

The Vision Pro, priced at a hefty $3,499 and expected to hit the market early next year, wants to fuse both augmented and virtual realities, but Wedbush's Dan Ives doesn't think the price will be a problem.

The device creates a three-dimensional interface, allowing users to immerse themselves in a realm where apps literally float within their physical environment.

Ives, in his reaction to the event, told investors that WWDC was another "flex the muscles moment” for the Cupertino-based company.

Ives On Apple: Ives maintained his Outperform rating on Apple and reiterated a $205 price target.

Despite its initial high price point, the analyst predicts a trajectory of increased sales for the Vision Pro, estimating roughly 150,000 units to be shipped in its first year and potentially up to a million units in its second year at lower price points.

Read Also: If You Invested $1,000 In Apple When ‘AR Headset’ Rumors Started, Here’s How Much You’d Have Now

Ives said the headset’s capability to integrate gaming, video streaming, conferencing and health/fitness apps across Apple’s ecosystem positions it as a revolutionary product that could potentially outpace competitors.

The WWDC event also spotlighted Apple’s commitment to power its next generation of products with the new M2 chip, Ives told investors.

The company introduced the 13- and 15-inch MacBook Air, the Mac Studio, and the Mac Pro, all powered by its M2 chip, which showcased its standing in chip technology, Ives mentioned.

"We believe ultimately Apple is now building out its own AI ecosystem within its iOS developer community starting with the launch of this product that will lead to more applications and use cases over the coming years," the analyst said.

Outside of hardware, the company announced key updates in iOS 17 including live voicemail, enhanced Phone/Messages/FaceTime apps, iPad Lock Screen and AirPod improvements.

According to Ives, Apple is strategically doubling down on software and the continued development of its own AI ecosystem.

AAPL Price Action: Shares of Apple closed the regular trading session on Monday up 1.45% to $183.58, according to Benzinga Pro.

Read Next: Apple Stock Hits Record High During WWDC, Tumbles After Vision Pro AR Headset Price Tag Unveiled

Photo: Courtesy Apple