After conducting a thorough test of Apple's (NASDAQ:AAPL) Vision Pro handset, analysts from Bank of America have reaffirmed their buy rating on the company's stock.
The overall impression of the device was highly positive.
“The unique paradigm of spatial computing is a standout feature, and we anticipate that over time, developers will create a multitude of apps to broaden its range of use cases.”
On the other hand, analysts noted that the usual challenges encountered by most first-generation products also apply to the Vision Pro, specifically in terms of weight and battery life.
As per analysts from Bank of America, the Vision Pro hardware holds the potential to increase earnings per share (EPS) by 46 cents within the next five years. Furthermore, EPS could see a contribution of 22 to 43 cents per share from OS-based applications.
“In total we estimate Vision Pro can add 68-89 cents per share to EPS over
the next 5 years. We maintain our Buy rating on Apple given multi-year iPhone cycle
driven by GenAI, strong services growth and margin expansion.”
BofA analysts believe that apps that manage to capitalize on Vision Pro's immersive capabilities and provide a unique user experience will be highly sought after. Examples include exclusive views of live-streamed sports or concerts, immersive video conferencing, and personalized workout sessions with an interactive trainer in a virtual setting.
Meanwhile, Netflix, YouTube, and Spotify have indicated that they presently have no intentions to create a specialized application for the Vision Pro.