Analyst Paolo Pescatore gives a first insight into the new tool, after attending its reveal at the 2023 Apple Worldwide Developers Conference

Apple Vision Pro

Apple events do not disappoint and this one will be remembered for some time, delivering the ‘next big thing’ hotly anticipated from Apple for some time. The action packed show delivered us a plethora of news from new devices, new platform updates and a sneak peak of forthcoming new features.

All eyes were on the Vision Pro; undoubtedly the star of the show. Make no mistake, this is a wow moment for the company and the consumer electronics industry. Today marks Apple’s biggest device launch in a while (since the Watch) that will change the way we interact and engage with content forever.

However, this is the start of a long journey. Apple has grand plans to revolutionise this segment as it has done with the iPhone; so remember this is its first foray. The hardware, services and experiences will evolve considerably over time to include other devices.

Even with this caveat, Apple’s focus around deftly blending the digital and real world brings a new category into the XR mix. Spatial computing, as Apple positions it, brings with it the start of a whole new platform. This provides a much-needed boost and is expected to reignite interest in the market. If anyone can kickstart demand for this segment, then Apple can.

Apple Vision Pro in use

The details

Overall, the Vision Pro is another impressive feat of engineering and intelligence that also brings the Apple ecosystem nicely together, including Siri.

It looks and feels unique, and is nicely differentiated over rival devices and platforms. It’s lighter and easier to use, but it relies on a separate battery pack, which might prove to be a hindrance to some users.

The price point will grab headlines. While some will feel it is too high, this is a premium high spec device that developers are crying out for. There are no other accessories required. Also, while price will always be a factor, creating demand is far more complex than lowering prices.

All of the pieces have been slowly coming together over time. While Apple still could have held, the timing feels right to showcase this product to the world; in particular to developers. Launching next year seems a long way away; the product, services offering, and experiences will evolve considerably. The move to showcase it now gives Apple time to generate appeal among developers and make it the platform of choice.

Market context

In time this will be another key revenue generating segment for Apple, which offers plentiful scope for growth among enterprises and consumers. This new platform will generate appeal among enterprises; a key target market for Apple.

Apple Vision Pro 2

However, expectations are high and it will take time for this category to stand on its own. It is apparent that for now, it’s about Apple putting a stake in the ground, providing developers with all the tools to create next generation experiences. This in turn will generate user demand ahead of bigger moves in the future.

It will appeal to loyal fans and for users looking for an immersive experience in areas such as games and live events including sports (which is fast becoming a core area of focus for Apple).

No comparisons should be made with previous devices, nor pricing or sales volumes. This product is unlikely to repeat the volumes seen with other Apple devices in their first years post-launch. Having said this, Apple excels in marketing, is a trusted brand and will eloquently articulate the merits of the platform and new device to all users.

While now might not be the right time to roll out a new product category, providing developers with the tools to create will help fuel desire and demand for a new glitzy product. Having Disney on stage is a strong endorsement and validates Apple’s unique approach. Other media giants will now quickly follow. This gives Apple plenty of scope on pricing. Diversification is key, which reinforces its approach to step up focus on services. For sure, a new device will provide much needed excitement for the entire developer and creative communities.

Paolo Pescatore

Paolo Pescatore is an analyst with PP Foresight.