Wedbush analysts predict that Apple’s “product renaissance” will begin with the release of the Apple Vision Pro, which is also the company’s first move toward launching an AI App Store.
Wedbush analysts suggest that the excitement surrounding the first weekend following the announcement of the Apple Vision Pro represents a major boost for Apple, with customers entering the shop with a “curiosity and intrigue for demos and purchases” that the company hasn’t “seen in years.
Wedbush’s Sunday note to investors, which AppleInsider was able to see, said, “We believe Apple Vision Pro is a potential game changer over the coming years and Cupertino has found clear success with this next generation form factor surpassing by a wide margin original Street expectations.”
Wedbush notes that despite Vision Pro’s expensive pricing and “limited audience outside of developers,” he is “surprised at the early mass market appeal Vision Pro is sparking.” The first 600 apps created specifically for visionOS are “well above expectations” and “jaw dropper.”
Check Out What’s New on AppleInsider TV
“We believe Apple Vision Pro is a potential game changer over the coming years and Cupertino has found clear success with this next generation form factor surpassing by a wide margin original Street expectations,” analysts state.
According to industry assessments, the second-generation model could cost less than $2,000 and may come in three model releases. This is “just the start for Vision Pro,” the letter reads, adding that “Apple looks to push more aggressively towards its golden installed base.”
The message speculates on next models, referring to the frequently mentioned smartglasses, predicting “form factors that look like sunglasses” in the upcoming years. Sales of the Apple Vision Pro are anticipated to surpass one million devices by 2025.
An Agenda for AI
Wedbush believes that the Apple Vision Pro is “the first step to Apple pushing into AI and eventually a separate AI App Store,” and that Apple would likely talk about it internally at WWDC. Analysts took note of Apple CEO Tim Cook’s remarks regarding artificial intelligence as well as his plans to make announcements later in 2024.
“We also believe Apple will incorporate generative AI into iPhone 16 and this will mark the start of a new frontier of growth for the golden installed base of Cupertino,” the note continues.
In the upcoming years, Apple hopes to integrate the Vision Pro with the iPhone and other Apple products, “with many consumer AI use cases set to explode across health, fitness, sports content, and autonomous.”
Wedbush contends that other Wall Street pundits are “dismissing Vision Pro as noise,” but he is adamant that it is the “first step towards a much broader technology vision that Cook & Co. plan to push to its installed base over the coming years.”
It is anticipated that Apple would see a “renaissance of growth” throughout the next 12 to 18 months, continuing to be “a table pounder tech stock to own.”
Wedbush continues to rate Apple as “Outperform” with a $250 price target.