Analysts at J.P. Morgan have cautioned investors against using the lead times for the Apple Inc. (NASDAQ:AAPL) Vision Pro as a measure of its popularity. They suggest that the focus should be on customer feedback and future supply chain plans.
What Happened: The Apple Vision Pro, set to be released on Feb. 2, has seen a surge in pre-orders, with shipping dates being pushed back to March and April, reported AppleInsider on Monday.
Despite the extended shipping times, some investors are using this as a gauge of the device’s popularity. However, J.P. Morgan analysts have advised against this approach, emphasizing the importance of customer feedback and future supply chain plans.
The note from J.P. Morgan, seen by AppleInsider, states that the focus on lead times is misplaced. Instead, the emphasis should be on the consumer experience of the device. The note also highlights the significance of supply chain feedback for the Vision Pro 2 plans, suggesting that revenue and volume could increase in future models.
“The focus on lead times in the case of the Vision Pro is misplaced, and we expect the focus should be on the consumer feedback on the experience of the device.”
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According to the note, the orders are being placed “prior to the product being tried or experienced by any customers,” and are a “function of the early experience that customers have with a device.” This differs from the typical two-week lead time between orders and shipments for iPhones in the fall, where customers are familiar with the iPhone experience, not the headset.
Why It Matters: The Apple Vision Pro has been a topic of significant interest since its announcement. The high price of the device, set at $3,499, has raised questions about its potential market success. Despite this, the device has seen a surge in pre-orders, with shipping times quickly extending to several weeks.
However, this success has also led to another issue, with resellers on eBay marking up the device to twice its original price. This has raised concerns about the device’s accessibility and the impact of its high price on its market success.
Despite these concerns, the Apple Vision Pro has been seen as a significant milestone for Apple, marking its entry into the virtual reality competition. The success of this device could have a significant impact on Apple’s future plans, with the Vision Pro 2 expected by J.P. Morgan for Q4 2025 at a “materially lower retail price.”