“Mad Money” host Jim Cramer thinks Apple Vision Pro might not be everyone’s cup of tea because of its price tag, just as Apple Inc. AAPL has opened pre-orders of its next big bet.
What Happened: Cramer agreed with co-host and CNBC’s market analyst David Faber, who underscored the fact that a $4,000 product might not have too many buyers.
“It’s a $4,000 product. That is not something that is going to be widely purchased,” said Faber. Cramer agreed with him, even jokingly pointing out that he had to turn down a unit that was being sent to him because it was “too expensive.”
Apple Vision Pro starts at $3,499 for the base model with 256GB storage and goes up to $3,899 for the 1TB version.
Buyers with prescription glasses will have to spend another $199. Together with other accessories and an AppleCare+ plan, the bill comes to $1,250.
Assuming that buyers go for the base variant with nothing but the AppleCare+ plan, Apple Vision Pro purchase could end up costing $4,000, which Cramer finds a bit steep.
“I just don’t think people have $4,000 sitting around when you can buy a 60-inch TV at Walmart for $289,” said Cramer, adding that the TV instead is an “amazing” purchase in contrast to the Vision Pro.
On Popular Apps Skipping Vision Pro: Popular audio and video streaming apps like Netflix Inc. NFLX, Spotify Technology SA SPOT, and Alphabet Inc.’s GOOG GOOGL Google’s YouTube are skipping the Vision Pro for now.
However, Cramer thinks YouTube will eventually land on Apple’s mixed reality headset.
“I predict YouTube will cave. You know, Google caves at everything in the end.”
Why It Matters: Apple Vision Pro’s $3,499 price tag might keep it out of reach of many people, especially when considering the fact that basic accessories like the cover, prescription lens, among others, are a $199 purchase each.
In case the Vision Pro headset gets damaged, repairs can cost as much as $2,399, or about 70% of the total cost of the base model.
Apple has geared up with its “most prominent sales pitch ever” for the Vision Pro to make sure prospective buyers are convinced enough to buy it. The company’s CEO, Tim Cook, has also posted a rare behind-the-scenes video that shows the Apple Vision Pro manufacturing process in intricate detail.
It remains to be seen if this is enough to convince buyers or not.
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Photo courtesy: Apple