Benzinga - by Shanthi Rexaline, Benzinga Editor.
Apple, Inc. (NASDAQ:AAPL) CEO Tim Cook’s commentary about the company’s pricier Vision Pro product on the earnings call has left none other than CNBC Mad Money host Jim Cramer impressed.
What Happened: “The Vision Pro was never a bust” but “it will be bigger as a B-to-B than consumer product initially,” said Cramer in a post on X following Apple’s earnings call.
The latest hardware from Apple’s stable has great use cases that it might always be bigger, the stock picker said. “Glad they have a high price point,” he added.
The ViisionPro was never a bust. It will be bigger as a B-to-B than consumer product initially and the uses cases are so great it might always be bigger… Glad they have a high price point— Jim Cramer (@jimcramer) May 2, 2024
In his introductory remark on the earnings call, Cook said, “It has been so wonderful to hear from people who now get to experience the magic of spatial computing. They describe the impossible becoming possible right before their eyes and they share amazement and emotions about what they can do now.”
He noted that the product generated enthusiasm from the enterprise market. More than half of the Fortune 100 companies have already bought Apple Vision Pro units and are exploring innovative ways to do things that weren’t possible before, he said.
Cramer also referred back to Nvidia CEO Jensen Huang’s keynote in which he talked about using the Omniverse with the VisionPro. “You will know how big this thing can be for Apple! Enough with the dead ones on Ebay!!” he added.
Why It’s Important: Vision Pro, which was made available in the U.S. in early February, hasn’t taken off in a big way, given its pricier nature, limited battery life, unwieldy design and lack of any killer app. It debuted with a starting price of $3,500.
Apple leaker and Bloomberg columnist Mark Gurman is of the view the headset will unlikely become a real revenue driver for at least the next year.
TFI Securities analyst Ming-Chi Kuo said last month Apple has cut down its Vision Pro unit shipments forecast for 2024 from 700k-800k units to 400k-450k units due to a significant drop in demand. Demand in the U.S. market was apparently not-so-strong, prompting the company to act, he said.
The analyst also said the company might not release a second-generation Vision Pro in 2025.
Image created using photos on Shutterstock
Apple settled Thursday’s session up 2.20% at $173.03 and rose 6%+ in after-hours trading, according to Benzinga Pro data.
© 2024 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.