Analyst Ming-Chi Kuo Gives "Vision Pro Update: U.S. Market Demand Slowing Significantly, Global Release Schedule Forecast, Interpretations for Supply Chain Production Expansion and Return Rates, New Model Prediction, and Investment Strategy" - Medium
Portfolio Pulse from Benzinga Newsdesk
Analyst Ming-Chi Kuo reports a significant slowdown in U.S. market demand for Apple's Vision Pro, with shipping times improved to 3-5 days indicating decreased demand. Despite this, U.S. shipments are expected to exceed Apple's original estimates. Global release is dependent on regulatory compliance, with a potential launch in more countries before WWDC. Supply chain production has expanded slightly, but Vision Pro remains a niche product. The return rate is under 1%, with some returns due to setup issues. Apple is predicted to focus on production efficiency rather than spec changes for the next Vision Pro model, with significant spec changes not expected until 2027. Vision Pro's impact on Apple and supplier share prices is considered limited, with its transition to a mass-market product dependent on applications, price, and comfort improvements.

February 28, 2024 | 2:52 pm
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NEUTRAL IMPACT
Apple's Vision Pro sees slowed U.S. demand but exceeds shipment estimates. Global launch and production expansion are in focus, with the next model prioritizing efficiency. Vision Pro remains a niche product with limited impact on Apple's share price.
Despite the slowdown in U.S. demand for Vision Pro, shipments are still above Apple's original estimates, indicating a positive performance. However, as Vision Pro remains a niche product with limited changes expected in the next model, the impact on Apple's share price is considered limited. The focus on production efficiency and regulatory compliance for global launch are key factors, but the overall market impact is neutral given the current demand and production levels.
CONFIDENCE 85
IMPORTANCE 70
RELEVANCE 90