Apple's Reality Pro to Set New Trends in Mixed Reality Market: Analyst

Author: Anusuya Lahiri | May 31, 2023 02:18pm

• Wedbush analyst Daniel Ives maintains an Outperform rating on Apple Inc (NASDAQ:AAPL) with a price target of $205.
• Apple will kick off its annual WWDC in Cupertino next week with all eyes on CEO Tim Cook's keynote Monday to set the tone for developers and announce new products. 
• Apple finally looks to unveil its mixed reality headset product, Reality Pro, with price points in the ~$3k range running off a new operating system called xrOS. 
• The company also looks to showcase a 15-inch MacBook Air, iOS 17, and some new chip updates, as this event is about courting developers.
• While other AR headsets have shown tepid success, like Meta Platforms Inc's (NASDAQ:META) Quest, Ives believes Apple's Reality Pro will have many apps and use cases to distinguish this new product within the Cupertino hardware arsenal. 
• He believes that based on the supply chain tea leaves, the device is made of aluminum, carbon fiber, and glass to reduce the weight and feel for the consumer. 
• Given the high price points, the analyst believes initial shipments will be roughly 150k units for Year 1 based on recent Asia supply chain checks. 
• Ives expects Apple to voice its AI strategy and its monetization.
• Price Action: AAPL shares traded higher by 1.10 at $179.25 on the last check Wednesday.
• Man wearing VR headset photo via Wikimedia Commons

Posted In: AAPL META