New reports claim that tech giant Apple (AAPL) is still developing new augmented reality (AR) glasses that will better appeal to consumers following the failure of its Vision Pro. To increase user interest, Apple wants to release AR glasses that are much smaller than the Vision Pro. This could result in it releasing a device similar in form to Meta Platform’s (META) Ray-Ban collaboration.
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According to these reports, Apple is developing its new AR glasses at its Santa Clara facility under the codename Atlas. The smart glasses will reportedly run on a leaner version of VisionOS but will not be ready for at least another three years.
What Happened to the Vision Pro?
While the Apple Vision Pro is an impressive product from an innovation standpoint, it didn’t resonate with consumers. Issues with the device, including its heavy weight on users’ heads and tendency to overheat, prevented it from gaining wide appeal. This reportedly made it a disappointment for Apple with sales below estimates.
Even so, Apple isn’t giving up on the Vision Pro. The company intends to expand its usefulness by adding support for Sony’s (SONY) PlayStation VR2 controllers. This would allow the company to integrate the device into the gaming market, potentially increasing interest. There’s also talk that a smaller, budget-friendly version of the Vision Pro is being developed. When that is released, customers should expect to pay about as much as they would for a high-end iPhone.
Is AAPL Stock a Buy, Sell, or Hold?
Turning to Wall Street, the analysts’ consensus rating for Apple is Moderate Buy based on 19 Buy, seven Hold, and four Sell ratings over the last three months. With that comes an average price target of $243.24, a high of $324, and a low of $183. This represents a potential 5.82% upside for AAPL shares.
