Apple Headset Enthusiasm Is Absent on Wall Street
The prospect of Apple Inc.'s first new product category in nearly a decade could hardly be attracting less of a fanfare on Wall Street.
At a time when investors have been whipped into a frenzy over artificial intelligence, analysts are using words like “modest” and “lackluster” to describe projections for initial sales of a mixed reality headset that the iPhone maker is expected to unveil on June 5.
The muted expectations are a stark contrast to the last time Apple entered a new market with the 2015 release of the Apple Watch. That was eagerly awaited by both consumers and investors, as the category was well-defined, offered potential for disruption, and pointed to an opportunity for new services, notably in health care.
“The headset isn't dead on arrival, but I don't think it's very exciting for people who aren't gamers,” said Ken Mahoney, Chief Executive Officer of Mahoney Asset Management. “Meanwhile, AI is going to transform businesses, and not only does Apple not have a dance partner in AI, it doesn't seem like it is even at the AI dance.”
Apple has been notably absent from the AI theme, though CEO Tim Cook said the company will add such technology to its products on a “very thoughtful basis.”
Shares of Apple rose 0.2% on Wednesday.
In contrast to past product launches, virtual reality and augmented reality (VR/AR) headsets are less-proven in terms of consumer interest and demand. Apple's is expected to include gaming and fitness apps, along with services for watching sports.
Headsets is also an area where others have struggled. Alphabet Inc. infamously failed to find an audience for its “Google Glass” product, though it's working on a new version of augmented reality glasses. Meta Platforms Inc. is a leader in the field
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