TF Securities analyst Ming-Chi Kuo is cautious about the Apple Vision Pro launch, warning that if the headset doesn’t sell out initially, it may face a longer road to success than expected.
Apple has confirmed that the Apple Vision Pro will be released on February 2 in the United States. Following the announcement, analyst Ming-Chi Kuo advised investors to temper their expectations for the launch.
In a Medium post on Tuesday, Kuo acknowledged that Apple showcased the technology well at its introduction, but “left out more important information about the product’s position and key applications.”
Kuo believes that if the hype for the headset translates to it selling out during pre-orders or when it goes on sale, it will be a sign of success. However, if it doesn’t sell out, Kuo thinks “Vision Pro may take longer to become a success, which would be detrimental to the short-term stock price performance of Apple and its supply chain.”
While Kuo praised the specifications and software as “well above the industry average,” he also warned that the novelty and demand could wear off “depending on whether Vision Pro’s product positioning and key applications are clear and correct.”
It’s not clear why Kuo holds this viewpoint. The Apple Watch was not an incredible success at launch, and it took an iteration or two to capture the market. Apple clearly has the money to wait out a less-than-successful product at launch, and has done so with Apple TV+ and the re-release of the larger HomePod.