Apple’s (AAPL) Vision Pro augmented reality headset is not selling as well as expected, leading the consumer electronics company to scale back its production.
Reports noted that current production has been scaled back since the summer, but may stop altogether by the end of the year. While the Vision Pro was heavily hyped in its early days, interest fell off rapidly and now there are a lot fewer of the devices being sold.
With several competitors in the field, and an expensive price tag, the market for high-end peripherals is just not what was anticipated. A report from The Information says that one supplier stopped making Vision Pro components back in May. This news comes as Apple was rumored to be looking into a new Vision Pro with a lower price tag.
Slow Rollout of Apple Intelligence
And what about Apple Intelligence? New reports from Craig Federighi, senior vice president for software engineering at Apple, offer some insight into the company’s artificial intelligence (AI) application.
In The Wall Street Journal, Federighi referred to Apple Intelligence as “a big lift,” and noted that it may seem behind, but it is actually being deliberate. Apple Intelligence will prioritize “safety and responsibility,” Federighi said.
Apple’s advancement in AI is incremental and modest at a time when new developments seem to be cropping up at lightspeed. This fact can make Apple look outmoded, a strange place for a company known for innovation to be.
Is Apple Stock a Buy?
Turning to Wall Street, analysts have a Moderate Buy consensus rating on AAPL stock based on 23 Buys, 10 Holds and one Sell assigned in the past three months, as indicated by the graphic below. After a 32.92% rally in its share price over the past year, the average AAPL price target of $248.34 per share implies 7.94% upside potential.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
