Tech stock Apple (AAPL) has been really selling its software lately, particularly its growing connection to artificial intelligence (AI). Its hardware, however, is proving a bit of a different story. Most models of the iPhone are doing well, except one, and there are signs the Vision Pro headset may be discontinued altogether. Shareholders were not happy, and Apple shares were down fractionally in Tuesday afternoon’s trading.
One problem some are seeing, according to a CNBC report, is that Apple’s hardware line is getting kind of dense. Back in 1998, Steve Jobs noted that all Apple really needed were four great products – two laptops and two desktops. One was a standard user version, and the other was a higher-end piece for “pro” customers. Fast forward to 2024, and Apple has four tablets, four laptops, two desktops, a headset, two watches, and three kinds of earphones.
And then there are the phones. Four of them are now in play, and the report suggested that the middle-of-the-road model, the iPhone 16 Plus, is proving to be a laggard. The base model, the iPhone 16, is doing well, as are the Pro and Pro Max, which have better screens. The Plus, however, is slightly more expensive than the base model and does not quite offer the features of the higher-end models, which is leaving it in a bit of a no-man’s-land.
The Vision Pro Going Dark
One piece of hardware that is not doing well, as noted in multiple reports, is the Vision Pro headset. This $3,500 piece of virtual and augmented reality headgear is struggling, and reports suggest that it may be quietly discontinued. A report from CNET found that Apple is “shifting gears” on the headset’s production, with production potentially shuttered altogether by the end of this year. However, Apple may simply be gearing up to release a different version instead, one that may be more budget-friendly.
This was assented by the Daily Mail, which noted that Vision Pro production “may need to wind down by November’s end.” Currently, one of the companies handling production, China’s Luxshare, is down from 2,000 units per day to just 1,000.
Is Apple a Buy, Hold, or Sell?
Turning to Wall Street, analysts have a Moderate Buy consensus rating on AAPL stock based on 24 Buys, eight Holds, and two Sells assigned in the past three months, as indicated by the graphic below. After a 21.53% rally in its share price over the past year, the average AAPL price target of $245.68 per share implies 9.56% upside potential.
