Apple (AAPL) Unveils Mixed Reality Device Vision Pro at WWDC23

Apple AAPL is finally joining the mixed reality bandwagon with the launch of Apple Vision Pro, “a revolutionary spatial computer that seamlessly blends digital content with the physical world,” at this year’s Worldwide Developer’s Conference.

The iPhone maker also announced the 15-inch MacBook Air, a new Mac Studio and Mac Pro. Moreover, Apple introduced iOS 17, watchOS 10, iPadOS 17 and macOS Sonoma.

The company’s shares hit a 52-week high of $184.95 on Jun 5 and closed at $179.58, returning 38.2% year to date, outperforming the Zacks Computer & Technology sector’s growth of 12.6%.

Vision Pro to Boost Apple’s Footprint in Mixed Reality

Apple Vision Pro brings a fully three-dimensional user interface, controlled by a user’s eyes, hands, and voice for navigation.

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Powered by visionOS, Vision Pro features an ultra-high-resolution display system that packs 23 million pixels across two displays and custom Apple silicon in a unique dual-chip design.

Apple Vision Pro is supported by an all-new App Store where users can discover apps and content from developers apart from familiar iPhone and iPad apps. Users can navigate through apps “by simply looking at them, tapping their fingers to select, flicking their wrist to scroll, or using voice to dictate.”

Moreover, Apple Vision Pro features EyeSight, which helps users stay connected with their surroundings.

The introduction of Apple Vision Pro intensifies competition in the mixed reality domain that is currently dominated by the likes of Microsoft MSFT HoloLens, Meta Platforms’ META Oculus, HP HPQ and others.

Microsoft’s HoloLens 2 comes in a variety of editions, including industrial and development options. HoloLens 2 headset enables six degrees of freedom tracking, with spatial mapping and mixed reality capture.

Meta is also set to launch its next-generation of Oculus device later this year. It launched Oculus 2 in September 2020.

HP, on the other hand, has begun producing headsets for both VR and MR environments. The HP Windows Mixed Reality headset is a streamlined device with integrated motion tracking and a 2-in-1 cable for pairing USB 3 and HDMI connections.

Vision Pro to Boost Product and Services Revenues

Apple’s latest device will surely benefit product sales, which accounted for 82.3% of first-quarter fiscal 2023 revenues.

Meanwhile, the Services portfolio has emerged as Apple’s new cash cow. This Zacks Rank #3 (Hold) company had more than 935 million paid subscribers across its Services portfolio at the end of the fiscal second quarter. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

The growing adoption of services like Apple TV+, Apple Arcade, Apple News+, Apple Card and Apple Fitness+ drives Services revenue growth. The newly announced App Store for Vision Pro is expected to further drive growth.

In the first quarter of fiscal 2023, Apple’s Services revenues grew 6.4% from the year-ago quarter to $20.77 billion and accounted for 17.7% of sales.

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