On Monday, Apple revealed its highly anticipated "mixed reality" headset called Vision Pro, which combines virtual reality and augmented reality. The headset is expected to be available early next year and priced at $3,499, surpassing analysts' expectations and significantly higher than competitors like Meta's Quest 2. Apple's shares reached a record high prior to the announcement but declined by 0.8% to close at $179.58 as the details of the headset were unveiled.
The Vision Pro marks a significant risk for CEO Tim Cook, who succeeded Steve Jobs in 2011. While Cook has been praised for his operational expertise, driving Apple's market value to nearly $2.9 trillion from around $350 billion in 2011, he has faced criticism for iterating on previous concepts and postponing projects like the Apple Car.
Why it matters
Apple's stock has consistently risen in 2023, viewed as a safe haven due to its strong balance sheet, capital-return program, and reliable revenue streams. Positive results driven by iPhone sales and Services business growth have surpassed expectations. Apple's market cap is set to increase by $41.4 billion, bringing it closer to a historic $3 trillion valuation, solidifying its position as the largest public company with a 7.6% weight in the S&P 500 Index.