Apple Triumphs In Earnings, Struggles With Growth: Is Vision Pro The Answer Or A Pricey Gamble?

On Thursday last week, Apple Inc. AAPL reported its fourth-quarter results that exceeded estimates. However, while analysts predicted that Cupertino’s sales would increase by 5% in the December quarter, Apple quashed those, leading to the question of what product will help the company restore its revenue growth, as it is doubtful that it will be Vision Pro. 

What Happened: In the latest installment of his weekly “Power On” newsletter, Mark Gurman highlighted the key issues that have grappled Apple with sluggish growth. 

The Bloomberg columnist said that while Wall Street believed that the Tim Cook-led company would have a strong holiday quarter, Apple, during the conference call, said that it would be “similar to last year.”

This simply means the revenue will be “roughly flat or possibly even decline again.” 

See Also: Apple CEO Tim Cook Is Still ‘Optimistic’ While Apple Struggles In China Amid Huawei’s Rise

Gurman noted that while Apple has blamed currency fluctuations and calendar quirks as the reasoning behind the declining trend, the company has not released a new iPad this year — something which happened for the first time since Steve Jobs introduced the product more than a decade ago. 

Similarly, revamped iPads and AirPods aren’t ready yet, and new wearable gadgets have some minor updates, making them unattractive for consumers to upgrade their devices. 

So what does Apple do? It increases prices, starting with Apple TV+, Arcade, and News+. However, this is not enough, and the tech giant requires one of its hallmark “next big things,” said Gurman. 

This brings us to Apple’s two highly ambitious projects: Apple Car and Vision Pro. 

While Apple is still years away from shipping its self-driving car, it is gearing up to make its first-generation mixed-reality headset, Vision Pro, available in early 2024. 

Now, here comes the problem. 

According to Gurman, “It’s becoming clearer and clearer that the product won’t be a major moneymaker for some time.” The headset will first launch in the U.S. only before being available in the U.K. and Canadian markets – which possibly will be by the end of next year. 

Given the complexity of the product and expensive price tag of $3,500, “Vision Pro isn’t going to be an easy product to sell,” said Gurman, and if the tech giant intends to reinvigorate its business, it will need to sell a lot of this product, which again seems highly unlikely. 

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