Juno, a widely praised (unofficial) YouTube app for Vision Pro, has been removed from Apple’s App Store after complaints from Google, according to from Juno’s developer Christian Selig. Google, Selig says, suggested that his app violates their trademark.
It’s the latest setback for Selig, who shut down his popular Apollo last year after the company changed its developer policies to charge for use of its API. The shutdown of Apollo and other apps like it ignited a from Reddit users and moderators.
This time, Selig says he doesn’t want drama, noting the $5 app was a “hobby project” for him to tinker with developing for visionOS. “I really enjoyed building Juno, but it was always something I saw as fundamentally a little app I built for fun,” Selig wrote on his website. “Because of that, I have zero desire to spin this into a massive fight akin to what happened with Reddit years ago.”
It’s unclear what aspect of Juno may have been the issue. Selig says that Google referenced its “trademarks and iconography” in a message to Apple, “stating that Juno does not adhere to YouTube guidelines and modifies the website” in a way that’s not permitted. “I don’t personally agree with this, as Juno is just a web view, and acts as little more than a browser extension that modifies CSS to make the website and video player look more ‘visionOS’ like,” Selig explains. “No logos are placed other than those already on the website, and the ‘for YouTube’ suffix is permitted in their branding guidelines.”
Google hasn’t made its own YouTube app for Vision Pro, though the company said such an app was “on our roadmap.” The company didn’t immediately respond to a request for comment.
Selig says that people who have already paid for the app should be able to keep using it for the time being, though there’s a chance a future YouTube update could end up bricking it.
Apple announced at WWDC 2024 that it’s making its Vision Pro headset available in eight new countries: China, Japan, Singapore, Australia, Canada, France, Germany and the United Kingdom.
Apple will first release the headset in China, Japan and Singapore on June 28, with preorders starting June 13. The Vision Pro will be available in Australia, Canada, France, Germany and the U.K. on July 12, with preorders starting June 28.
Until now, the company has offered a headset for $3,499 in the U.S. Plus, developers could experience the Vision Pro in some locations worldwide.
“The enthusiasm for Apple Vision Pro has been extraordinary, and we are thrilled to introduce the magic of spatial computing to more customers around the world,” Apple CEO Tim Cook said.
“We can’t wait for more people to see the impossible become possible, whether working and collaborating with an infinite canvas for apps, reliving treasured memories in three dimensions, watching TV shows and movies in a one-of-a-kind personal cinema, or enjoying brand-new spatial experiences that defy imagination.”
On its surface, Marvel’s new “immersive story” What If…?, available to Apple Vision Pro users starting Thursday, seems like a win-win. Marvel gets to mess around with how to combine storytelling and spatial computing, and Apple gets a big-name experience to appease everyone who ponied up $3,500 for their new piece of tech.
But having recently spent an hour or so in Vision Pro’s What If…? universe, I’m not actually sure if it’s a win for anyone outside of the big companies backing it. While it’s initially intriguing and visually complex, the more time you spend within it, the flimsier the experience becomes.
There are great things about the Apple Vision Pro—the see-through display, for instance, or the way it seems to seamlessly track your eye movements. Marvel clearly makes the most of those pluses in What If…?, which pivots off Disney+’s popular animated series about the multiverse to ask what would happen if you, the awkward person in the big headset, were ill-advisedly chosen to harness the power of all six infinity stones. The story finds you hurtling through different dimensions, fighting alongside Marvel heroes and against Marvel villains, all while you’re comfortably seated on your couch.
Make no mistake, What If…? is a story. All parties involved are taking care to call it that. This seems significant given that it certainly isn’t a game—or if it is, it’s one with a hell of a lot of exposition and not much playability.
The vast majority of what you’re tasked with as a user involves hand motions: Make a fist with your fingers facing you and you’ve got a Doctor Strange-like shield. Turn your hand and extend it outward, and you’re suddenly able to control objects—literally just infinity stones, for what it’s worth—with telekinesis. You can open portals, alter the fabric of reality, seal “dangerous beings” away, and send energy blasts from your fists. These tricks, though, are all just based on a series of similar, not very engaging movements, all of which I forgot numerous times over the course of my time in the story. (Luckily, I had Apple publicists there to mind and remind me, though even then it was sometimes hard to know what I was supposed to be doing.)
This lackluster immersion could prove to be a problem. Developed with ILM Immersive, the Lucasfilm interactive studio formerly known as ILMxLab, the What If…? experience is intended to expand Marvel Studios’ work beyond cinemas and Disney+ shows. To, as Walt Disney Studios chief technology officer Jamie Voris puts it, “understand how to tell bigger stories in these new mediums.”
It’s hard to fathom, though, considering the Vision Pro’s somewhat anemic reception, how big of a deal What If…? could be. The headset needs more experiences, and Marvel’s been looking to move beyond its live-action offerings, but the Vision Pro’s hefty price tag puts the experience out of reach for a lot of fans. Even if it’s free, which it is, What If…? may lack the pizazz necessary to draw people in.
This has become a pattern: One minute he’s not wearing the headset, and the next he is. The transition would always happen unexpectedly—when I’d leave the room to jump in the shower, do my makeup in the bathroom, or get ready to go out.
One time, after I finished brushing my teeth before bed, I walked out to the living room to find him sitting on the edge of the couch, staring into the distance with the Vision Pro firmly on his head. He was playing chess. I sat down next to him and watched in silence as he pinched his fingers and moved imaginary chess pieces through the air in multiple directions—left, right, diagonal—slowly pulling back to observe his opponent’s (a computer) next move.
During similar interactions, I’d always ask, “Can I try?” In an attempt to persuade me to love the Vision Pro as much as he does, he’d always oblige. It’s not that I’m totally against owning my own headset, but I struggle to understand the need for it in its current form. Aside from the outrageous $3,500 price and heavy frame, I know that I’ll never reach for it as much as I do my iPhone, MacBook, or iPad. I’m content with my setup. Besides, shouldn’t that mean one per household is enough if you spend that much? Unfortunately, sharing the experience feels more like a hassle than fun.
For starters, you have to log in to Guest Mode each time, so I’m forced to go through the 90-second calibration test everytime. I also wear glasses. Technically, I’m supposed to buy the prescription Zeiss Optical Inserts. But I refuse to give Apple $150 because of something completely out of my control. It’s also annoying to think that you’d have to spend even more money if you live in a household with multiple people wearing glasses.
I’ve also never had a problem using other headsets, like the Meta Quest 2, with glasses. And so, out of pure spite, I continue calibrating the Vision Pro with my glasses on anyway. It’s not foolproof—the internal eye-tracking cameras sometimes struggle to pinpoint where my eyes are looking. Some things, like spending time in virtual Mount Hood, watching Spiderman: No Way Home in 3D, and browsing the web on Safari, are easy. But anything that requires more precise eye-tracking, such as navigating visionOS or attempting to play a game, is a struggle.
A Problem Shared
When my boyfriend and I wanted to share the experience in any way, shape, or form, we’d try casting content on the TV using AirPlay. Unfortunately, a simple task like watching a movie wasn’t very successful. We tried watching Mean Girls, but because it’s on a streaming service, the content was blacked out on both the Vision Pro and the TV because of copyright.
Meanwhile, playing a game like Fruit Ninja on the big screen is fun for only so long. Every time we wanted to switch players, we’d have to go back and forth between his profile and Guest Mode. I couldn’t help but think back to how easy this process was with a headset like the Quest 2. A few years back, when my dad, brother, and I played The Walking Dead: Saints & Sinners for a few hours together, we simply passed the headset around between the three of us and jumped into the game without having to switch profiles or tinker with the settings. On the Vision Pro, however, my boyfriend and I must’ve played for a total of 10 minutes before the whole experience started to get boring.
Are you an avid tech enthusiast with a penchant for innovation? Are you ready to embark on a journey into the future of spatial computing? Well, hold on to your hats because PopularLiving.com has an invitation you won’t want to miss! We’re on the lookout for our very first “Chief Apple Enthusiast” to dive headfirst into the world of Apple’s latest flagship product – the Vision Pro headset. Let’s unpack this invitation and see why it’s a golden opportunity for tech aficionados everywhere.
1. Unveiling the Vision Pro: A Glimpse into Tomorrow’s Tech
Apple’s Vision Pro is not your average headset – it’s a gateway to a whole new dimension of spatial computing. Designed to seamlessly blend the everyday with the extraordinary, this cutting-edge device promises to revolutionize the way we work, connect, and play. With its sleek design and powerful features, the Vision Pro is set to take the world by storm.
2. Getting Hands-On: Two Weeks of Tech Exploration
Imagine getting the chance to be one of the first to experience the Vision Pro up close and personal. As our Chief Apple Enthusiast, you’ll have the opportunity to spend two immersive weeks diving deep into all that this groundbreaking technology has to offer. From testing its impact on work efficiency to exploring its potential for social connectivity and entertainment, you’ll be at the forefront of shaping the narrative around this game-changing device.
3. Rewards and Recognition: A Win-Win Situation
But wait, there’s more! In addition to the unparalleled opportunity to explore the Vision Pro, our chosen participant will receive a generous reward package. We’re talking $4,000 in cold hard cash, plus a “comfort pack” featuring iTunes and Instacart gift cards, gourmet snacks, and even a bespoke PopularLiving sweat suit. Consider it our way of saying thank you for sharing your insights and experiences with our community.
4. How to Get Involved: Seize the Moment
So, how can you throw your hat into the ring for this once-in-a-lifetime opportunity? It’s simple – just head over to our website and submit your application by midnight on May 20, 2024. We’re looking for U.S. residents aged 18 and above with a flair for creativity and a deep-rooted passion for Apple’s ecosystem. Whether you prefer to express yourself through video submissions or written narratives, we want to hear from you!
In conclusion, the invitation to become our Chief Apple Enthusiast is not just an opportunity – it’s a chance to be part of something truly extraordinary. So don’t miss out on your chance to dive into the future of technology with the Vision Pro. Apply now and get ready to experience innovation like never before!
Appleâs mixed-reality headset is selling well, but itâs embroiled in a new mystery thatâs proving tough to crack.
As first reported by MacRumors, some customers have discovered a mysterious crack appearing vertically down the center of the front-facing screen on their Vision Pro headsets. The reports have come from only a small number of users, most of them talking about it on Reddit, which can be an unreliable source. That said, Engadget reports that the same crack has occurred on its review unit. The folks affected say they havenât mishandled the devicesâthereâs been no dropping or smashing that could create the crack in the laminated glass screen. So itâs not yet clear what exactly is causing the problem, or whether it actually affects the performance of the Vision Pro.
WIRED reached out to Apple to ask about the cracks on the Apple Vision Pro’s front screen and what could be causing them, but the company hasnât responded.
Apple has chosen to make its first headset out of premium materials like aluminum and glass that have resulted in the device being both heavy and less durable. For an example of how it stands up to stress, take this video of YouTuber JerryRigsEverthing absolutely demolishing an Apple Vision Pro headset. (Spoiler alert: It doesnât do well if you set it on fire.)
Hereâs some other consumer tech news.
Apple Sports a New App
This week, Apple announced a dedicated app for sports lovers. Itâs calledâwait for itâApple Sports. The app is free on iOS, and it gives iPhone users access to real-time sports scores. It can be used to track scores and stats from some professional and college leagues, like Major League Soccer, NBA and NCAA basketball, Premier League soccer, and NHL hockey. Notably missing are other sports giants like the MLB, NFL, NCAAF, NWSL, and WNBA, though Apple says those leagues are coming to the app soon for their upcoming seasons.
The app lets users filter and customize the scoreboards to show their favorite teams. Itâs also meant to push users toward watching games on Apple TV, with the inclusion of a âWatch on Apple TVâ button in the app. While the iPhone app is free, streaming the games usually requires a subscription.
Apply PC Games Directly to the Forehead
In other VR news, Sony says it is testing out making its newest VR headset compatible with PC games. Sonyâs PS VR2 came out a year ago, and while itâs a fun, powerful device, it received some criticism for requiring a tethered connection to a PS5 console. Now, Sony is exploring the idea of letting players utilize the headset for gameplay on PCs as well.
The announcement was buried a few paragraphs into an update about new games coming to Sonyâs console platform. The company didnât share any details about which PC games it is testing on PS VR2, or when such a feature might become available.
Still, itâs a welcome cross-platform move that may bring Sony a step closer to ending the console wars. Thatâs probably not the companyâs immediate goal here, but it is not the first move by a gaming company on the interoperability front. Last week, the Xbox team announced that several of its previously exclusive console games will soon be made available on other platforms like PlayStation and the Nintendo Switch.
What Are You Dune 2 Night?
Swiss luxury watchmaker Hamilton has unveiled two new timepieces inspired by director Denis Villeneuveâs upcoming Dune sequel. As you might expect, they look like something thatâs arrived straight from Arakkis. (Thatâs the Dune planet.) The exterior is a rugged matte black, with bright blue numbers and watch hands meant to evoke the color of the eyes of the Fremens. (Theyâre the Dune people.) The triangular shape of the case is an evolution of Hamiltonâs Ventura model, which was first introduced in the 1950s.
The Ventura XXL Bright costs $1,810 and is limited to 3,000 total units. The Ventura Edge Dune watch is $2,553 and is limited to 2,000 total pieces. Dune: Part Two opens next Friday, March 1.
Tech Trouble
It’s a rough time to be in the tech industry for a lot of workers, especially those who have been swept up in the great wave of layoffs that have happened so far this year. In a matter of weeks, tens of thousands of tech workers lost their jobs. Companies of all sizes have made cuts recently, including Google, Amazon, Discord, and Instacart. It’s a stark shift for an industry that grew by enticing employees with extravagant campuses and benevolent benefits. Now, faced with a glut of job seekers, companies have gotten very particular about who they hire. It’s harder than ever to land a tech job, and both sides of the interview table are getting creative about how they approach the other. (Yeah, they’re probably all using AI.)
This latest episode of WIREDâs Gadget Lab podcast dives into the plight of tech workers, and how getting a job and keeping one have become much more precarious.
Mark Zuckerberg tried Apple’s Vision Pro headset and his verdict is that the Meta Quest 3 is a better product. Shocking, right?
In a video posted on his Instagram account, recorded with Quest 3’s passthrough, the Meta CEO said before trying out the headset he thought that Quest 3 would provide better value to people as it is seven times less expensive than Apple’s $3,500 headset. But after his tryst with the Vision Pro, he thinks his company’s product is superior.
“I don’t just think that Quest is the better value, I think Quest is the better product, period,” he said. “Different companies made different design decisions for the headsets, they have different strengths. But overall, Quest is better for the vast majority of things that people use mixed reality for.”
Zuckerberg made the case for Quest 3 being more comfortable in activities such as exercising and gaming, given Meta’s headset weight around 120 grams less than the Vision Pro. The Meta CEO criticized Apple’s headset for trading-off things like the quality of the device, comfort, and ergonomics in order to get to screens with higher resolution.
As he was showing off the passthrough capabilities with browser windows, he said Quest 3 has a wider field of view with brighter screens. Zuckerberg also made a point that Quest’s combination of hand tracking and physical controls is superior. Plus, the company is thinking about bringing back eye tracking, which was introduced in the Quest Pro, to cheaper headsets.
Zuckerberg claimed you can only play Xbox and watch YouTube on a big screen through Quest. While YouTube doesn’t have an official app for the Vision Pro, developer Christian Selig made a YouTube app called Juno. Technically, you can watch YouTube on Apple’s device.
Apple is getting started with the Vision Pro, while Meta already has a rich library with partners like Roblox. Meta has also produced multiple headsets and reduced the prices of older models. Apple is a late entrant to the mixed reality/virtual reality market, and Meta wouldn’t want to cede ground to it.
We’ve spent the last week with the Apple Vision Pro and we have thoughts! This week, Senior Writer Sam Rutherford and Podcast Producer Ben Ellman join Devindra to chat about his Vision Pro review, as well as their first impressions of the headset. It’s far from a slam dunk, but it’s also one of the most fascinating devices we’ve ever seen. We dive into Apple’s impressive 3D Immersive Videos, the elegant simplicity of the Vision Pro’s eye tracking and hand gestures, and the trouble with wearing such a heavy headset.
Listen below or subscribe on your podcast app of choice. If you’ve got suggestions or topics you’d like covered on the show, be sure to email us or drop a note in the comments! And be sure to check out our other podcast, Engadget News!
Topics
Devindra’s Apple Vision Pro review – 0:49
Microsoft’s gaming division is expected to announce former exclusive games going multiplatform – 51:06
Maliciously edited video of President Biden is allowed to stay by Facebook’s oversight board – 54:30
Add Taylor Swift to the list of celebrities who don’t want their jets tracked – 57:35
Working on – 1:00:10
Pop culture picks – 1:00:50
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Credits Hosts: Devindra Hardawar and Sam Rutherford Guest: Ben Ellman Producer: Ben Ellman Music: Dale North and Terrence O’Brien
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The foundational vocabulary of any new medium is inherited from that of its predecessor. Take, for instance, the early days of television, when so many shows were effectively radio programs caught on film. The new medium’s success is dependent on the development of its own vocabulary, distinguishing itself from earlier paradigms.
In the case of Vision Pro, the connection to a predecessor couldn’t be more apparent. A major piece of Apple’s content strategy is the ability to run iPadOS apps on the headset. When searching the visionOS App Store, users choose between content developed specifically for the platform and that created for the tablet. It’s similar to the approach the company has taken to building out the Mac App Store, which draws from both iOS and iPadOS apps.
While 600 is a good number of “optimized” apps for the launch of a first-gen product, the availability of iPadOS content really bolsters the essentials and gives developers some extra time to build something custom while bigger names like YouTube waffle on their objectives. As far as what constitutes “optimized,” we’re talking about a wide spectrum. That could mean something as simple as a change to the UX to reflect the Vision Pro’s hand tracking. It could also mean something far more immersive.
I understand if you didn’t make it all the way through last week’s 6,000-word review, so here’s a bit of the TL;DR: the Vision Pro will live or die on the backs of developers. As I noted previously, the first iPhone was undoubtedly a revolutionary piece of hardware, but it was the iPhone 3G’s App Store that really blew the industry wide open. At this point we all fundamentally understand that a hardware platform is only as good as its content, and Apple only truly demonstrated how capable its smartphone was by opening it up to developers.
Truly immersive experiences are very much in the minority in the Vision Pro’s current state. That’s not a surprise, really. While development has — to a certain extent — been open for months now, I’m sure many parties have been waiting for launch to gauge the true interest of both the public and their developers.
This isn’t to say that immersion isn’t present in the current offering. For one thing, it’s big into Environments — a core feature of visionOS that serves as a kind of immersive desktop wallpaper, putting you on the moon, in a desert or at the edge a volcano. Experience Dinosaurs, meanwhile, does a fine job leveraging the knowledge of the Prehistoric Planet team to create one of Vision Pro’s most compelling demos. It’s content like this that demonstrates potential that can be exploited by future developers.
One of the device’s initial creativity bottlenecks, however, is where Apple chose to focus its initial push. In my review, I hammered the idea of “infinite desktop,” a play on the phrase “infinite canvas” that gets to the heart of the “spatial computing” experience Tim Cook has pushed since day one. At its core, Apple sees the device as the next step in a journey that began with the Mac decades ago. For now, it’s designed to play nicely with desktops and laptops, but it’s easy to imagine a future where (should things play out the way the company hopes) Apple’s primary PC is one you strap to your face.
This push was a surprise to many at last year’s WWDC. I suspect it also left plenty of fans cold. A 360 degree desktop is compelling to sum, but there’s a sense it which it’s almost a commoditization of the form factor that’s been sold to us as the future of entertainment for decades. A big part of this push is obvious: the first-gen product is $3,500. Enterprises have significantly deeper pockets than consumers. How do you sell to them?
Training apps are a big piece. If a company believes it can save money on employee training down the road, it will happily shell out the upfront cost. Rendering is a piece as well — look to apps like JigSpace as an example of real-time 3D modeling. Imagine, for instance, building a 3D render of a car in 3D design software, exporting it and then being able to walk around it. The third key point is productivity. That’s where spatial computing comes in. This means products like Microsoft Word and applications like mind mapping, which are traditionally constrained by PC displays.
Entertainment is here too, but it largely feels secondary to visionOS in its current form. Part of the answer can be found in the product’s name. Given Apple’s current product line structuring, “Vision Pro” implies the future existence of an “Apple Vision” — i.e. a headset for consumers priced well below $3,500. If you know anything about hardware, you know how much first-gen products absorb R&D costs, as well as smaller-scale manufacturing. The bleeding-edge components such as 4K eye displays way heavily on production costs until scale increases.
So, you position the product as premium and you sell it to enterprises. Games and movies are present because they can’t not be. The idea of a “work machine” doesn’t exist the way it did decades ago. The iPhone played a huge role in blurring that line, for better or worse, making the productivity machine its own distraction device. If you bring your work laptop on a business trip, odds are pretty good you’ll fire up Netflix at some point.
Perhaps the more accessible version of the product will find Apple shining more of a spotlight on immersive entertainment. As it stands, many of the experiences are iPadOS apps that are played on a virtual large screen, rather than something that takes advantage of immersion and hand tracking in a way that couldn’t be replicated in the medium that preceded it. For now, it seems, there’s a reason Apple doesn’t want people calling the Vision Pro “VR.”
This morning, I played a few rounds of Synth Riders. If the name sounds familiar, it’s because it’s also available on Meta Quest — that’s an easy enough port. In fact, many of the first immersive entertainment experiences will likely take this route. If you’re already developing for VR, why not tap into this burgeoning market? Synth Riders is a rhythm game not fundamentally dissimilar from Rock Band, wherein your hands (or controllers in the case of the Meta Quest) control two spheres that rack up points as you correctly move them to the beat of a synthwave track.
I found it mesmerizing. It’s also the closest I’ve come to using a fitness app on the device. This is due to limitations with headset weight, price and that darn battery pack. The Vision Pro isn’t designed for you to jump around and get super sweaty in. This does, however, feel like a blind spot for a company so focused on the space through the Apple Watch and Fitness+ app. Maybe as Apple brings the weight down and finds a more manageable battery solution? Again, many of our Vision Pro conversations are very much focused on the first-gen hump.
Ultimately, however, broader consumer appeal will hinge on two key things: 1) Bringing down the cost and 2) Content. Both will make or break future devices’ mainstream appeal, and whether Apple currently recognizes it or not, entertainment and fitness will need to play a key role in that journey.
Apple (NASDAQ:AAPL), one of the largest manufacturers of high-tech devices in the world, has faced scrutiny for failing to launch a blockbuster product in recent years. The Apple Vision Pro, the company’s first virtual reality headset, is widely seen as a potential silver lining that could become the biggest product launch since AirPods.
The Apple Vision Pro will be available for purchase in the U.S. starting on February 2, and the company is yet to announce an international launch date. Although I am beginning to be optimistic about what’s in store for Apple this year, I am neutral on AAPL stock, nonetheless.
Looking Beyond Encouraging Demand Trends
The Apple Vision Pro has been available for pre-order since January 19, starting at a price of $3,499 for the 256 GB version. For comparison, Oculus Quest 3, the latest AR headset developed and sold by Meta Platforms, Inc. (NASDAQ:META), starts at $499 for the 128 GB version. The hefty price of the Apple Vision Pro raised concerns when the product was unveiled last June, but data from the first weekend of pre-order availability suggests strong initial demand.
According to popular Apple analyst Ming-Chi Kuo, Apple sold between 160,000 and 180,000 Vision Pro units during the first pre-order weekend, which suggests the device was sold out, as expected, within the first weekend itself. As the analyst observed and reported, expected shipping times for all Vision Pro devices extended to five to seven weeks immediately after pre-ordering was enabled – a clear indication that the Vision Pro was sold out.
There is, however, a major difference between blockbuster iPhone models and the Vision Pro. Typically, iPhones see a steady rise in shipping times for at least 48 hours after the availability of pre-ordering, but Vision Pro shipping times remained steady in the first 48 hours after the initial burst. This, according to analyst Ming-Chi Kuo, serves as a warning sign.
Apple has a cult-like follower base that lines up to purchase new devices as and when they are released. A blockbuster product will not only attract this strong follower base but will also appeal to the masses. The waning demand for the Vision Pro after an initial burst suggests the VR headsets are yet to attract mass tech consumers.
The AR/VR Market Has Room for Disruption
Empirical evidence suggests that Apple has been wildly successful in aggressively gaining market share in various consumer tech niches such as smartphones, personal computers, and smart watches despite not enjoying first-mover advantages in any of these markets. Apple’s success stems from the company’s proven ability to develop appealing tech products based on a deep understanding of consumer preferences.
Today, the AR/VR headset market is at an infant stage, with IDC projecting just 8.1 million AR/VR device shipments in 2023. According to Counterpoint Research, Meta dominated this market in the third quarter of 2023, accounting for 49% of all device shipments. Counterpoint data reveals that headset shipments plummeted by 29% year-over-year in Q3 due to a lack of compelling headset launches.
The relatively small size of the AR/VR headset market leaves ample room for disruption, and Apple has a reputation for successfully exploiting similar opportunities in other market segments.
Apple’s Scale Problem
Apple has grown in leaps and bounds since the first-ever iPhone was released in 2007. The massive size and scale of the company, however, has made it difficult for Apple to meet Wall Street’s growth expectations in recent years. For context, in Fiscal 2023, total revenue declined close to 3% year-over-year to $383 billion, while net income also declined by 2.8%.
The problem with Apple’s massive scale is that it takes a wildly successful product to move the needle for the company from a financial performance perspective. In 2024, Apple expects to sell 500,000 Vision Pro units, bringing in revenue of at least $1.75 billion. This may seem like an encouraging figure in isolation, but in comparison to the almost $400 billion in revenue Apple is projected to bring in this year, Vision Pro sales seem trivial.
Even if Apple sells double the projected Vision Pro units for 2024, this segment will still account for less than 1% of total company sales this year. Going by this understanding, it seems fair to conclude that Vision Pro will fail to meaningfully impact Apple’s fundamentals in the foreseeable future.
The highly anticipated VR headset, however, has the potential to improve the market sentiment toward Apple and ascertain the company’s position as a dominant tech innovator if unit sales exceed Wall Street expectations this year.
Is Apple Stock a Buy, According to Wall Street Analysts?
Apple is one of the most followed companies in the market. Not surprisingly, Wall Street analysts are often divided about Apple’s prospects, but they’re currently bullish overall. The stock earns a Moderate Buy consensus rating based on 22 Buys, eight Holds, and one Sell assigned in the past three months. Here’s what some analysts have said about Apple.
On January 18, Bank of America Securities upgraded Apple and raised the stock’s price target from $208 to $225, citing the company’s promising AI product roadmap, among other bullish developments such as the improved outlook for the services segment. BofA also claimed that Vision Pro sales could eventually surpass iPad revenue in the long run, with VR going mainstream.
On January 23, Bank of America (NYSE:BAC) added Apple to its US 1 list, which is a collection of the bank’s best investment ideas.
Morgan Stanley (NYSE:MS), in its Weekly Warm-Up Report, published on January 22, identified Apple as one of the top high-quality growth stocks in the U.S. among 56 other companies that are seemingly well-positioned to deliver alpha returns this year.
Last week, Piper Sandler highlighted Apple as the 3rd most attractive pick out of Magnificent 7 stocks, behind Alphabet Inc. (NASDAQ:GOOG)(NASDAQ:GOOGL) and Meta Platforms.
Overall, based on the ratings of 31 Wall Street analysts, the average Apple stock price target is $205.85, which implies upside of 7.5% from the current market price.
The Takeaway: Vision Pro is Exciting, Apple’s Valuation Is Not
Apple is heading into exciting days, with the first batch of Vision Pro units expected to be shipped out in the coming weeks. Although the Vision Pro may not have a strong impact on Apple’s earnings this year, the market may reward Apple handsomely if the device attracts tech bulls and positive reviews from tech enthusiasts. Apple, however, looks expensively valued at a forward P/E of 29 compared to its five-year average of 25.
We’ve known about the Vision Pro for more than half a year now (not to mention the years of rumors), but Apple’s first “spatial computing” device is one of consumer electronics’ biggest question marks heading into the new year. The $3,499 headset was given an “early-2024” release time frame when it was unveiled at WWDC in June, but since then, the company hasn’t gotten more specific.
Apple oracle Ming-Chi Kuo offered an early holiday gift on December 24, narrowing down what he believes will be a “late-January/early-February” release date for the system. The analyst says that the first wave of Vision Pros are being shipped to Apple in about a month, with total shipments numbering around 500,000 for the full year.
The company’s precise target for the year remains an open-ended question. About a month after the device was revealed, reports suggested that Apple has scaled back expectations from around one million to “fewer than 400,000.”
Even the updated 500,000 figure is small for a company of Apple’s massive size and influence. Keep in mind that the company should be shipping more than 200 million iPhones this calendar year.
The Vision Pro, however, is widely regarded as the biggest gambit of Tim Cook’s 12-year tenure as CEO. Not only is it an entirely new category and form factor for the company, it’s also prohibitively priced, even for customers accustomed to shelling out extra for apple products. Add to that VR’s decades-long failure to live up to expectations, and you’ve got a big uphill fight on your hands.
Kuo refers to Vision Pro as “Apple’s most important product of 2024.” Given the years of speculation and all the time and money the company has no doubt poured into the headset, it’s a tough statement to argue.
Social media CEO Mark Zuckerberg, who changed the name of his company to pursue his metaverse dreams, is defending his company’s approach to virtual reality after Apple’s blockbuster announcement earlier this week.
On Monday, Applerevealed the Vision Pro, its first foray into what the company called “spatial computing.” The $3,500 headset will overlay apps on the surrounding environment, allowing users to interact with content and programs over a three-dimensional space.
The announcement threatens to overshadow Meta’s own virtual reality reveal: the Meta Quest 3, which the social media company unveiled last week. Meta’s headset is priced at a more affordable $500, and, like the Vision Pro, also features “mixed reality” (where images are displayed over a real-world environment).
At an all-hands meeting on Thursday, Zuckerberg said that Apple’s reveal “really shows the difference in the values and the vision that our companies bring to this,” reports The Verge. Meta’s vision for its virtual reality offerings is “fundamentally social,” he said, noting that his company’s demonstration showed “people interacting in new ways and feeling closer.”
Yet “every demo that [Apple] showed was a person sitting on a couch by themself,” Zuckerberg said. “That could be the vision of the future of computing, but like, it’s not the one that I want.”
Meta did not immediately respond to a request for comment.
Metaverse
Meta’s CEO was one of the loudest proponents of the “metaverse,” or the idea that the real and digital worlds will become increasingly connected through new technologies like virtual reality. Zuckerberg even changed the company’s name from “Facebook” to Meta Platforms in late 2021.
Yet the company’s metaverse efforts haven’t caught fire. Horizon Worlds, the company’s flagship virtual world, had fewer than 200,000 monthly active users by October 2022, according to the Wall Street Journal.
In April, Meta reported that the Reality Labs unit, which develops its metaverse efforts including virtual reality, lost $3.99 billion in the most recent quarter. The company warned the division was likely to lose even more money this year.
Zuckerberg referred on Thursday to his company’s earlier investment in virtual reality, noting that Apple’s headset did not feature any developments that Meta’s teams “teams haven’t already explored and thought of.”
Virtual reality is not the only area where Meta’s earlier efforts have risked getting leapfrogged by a competitor. The social media company has invested billions into new A.I. technologies, but has hesitated to release them for broader use for fear of disseminating untrue information, according to the New York Times. Yet the release of OpenAI’s ChatGPT has allowed other tech companies, like Microsoft and Alphabet, to take over the conversation for A.I.
Embarrassingly, Meta was not invited to a White House discussion on A.I. earlier this year, with an administration spokesperson saying at the time that it wanted to focus “on companies currently leading in the space.”
Meta announced a few generative A.I. tools in its all-hands meeting on Thursday, including chatbots for Whatsapp and Messenger, and photo-editing tools for Instagram, according to Bloomberg.
The social media is in the middle of what its CEO calls a “Year of Efficiency,” a cost-cutting initiative. The social media company has cut 21,000 jobs since last November.
On the offensive
Yet in one area, Meta is going on the offensive against a competitor.
Also on Thursday, the company revealed to employees that it was working on a competitor to Twitter, reports the Verge. The competing social media company is beset by content moderation controversies under new owner Elon Musk,
Some celebrities are already interested in the app, internally called “Project 92,” said Chris Cox, Meta’s chief product officer, during the all-hands meeting. “We’ve been hearing from creators and public figures who are interested in having a platform that is sanely run,” he said.