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The virtual reality market is expected to grow at a compound annual rate approaching 25% during the period from 2024 to 2029. That rate of growth is very attractive and will drive investment into the sector.
2024 is poised to be an especially strong year for the augmented and virtual reality sector. Major firms release AR/VR headsets, for one. Additionally, the macroeconomic situation is improving. The Federal Reserve is expected to cut the FED funds rate three times in 2024.
Those rate cuts promise to incentivize greater lending activity overall which will serve to further prime the economic growth engine. The overall thrust is a positive one and it should serve to benefit augmented reality stocks.
Apple (AAPL)
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Apple (NASDAQ:AAPL) began pre-orders for its Vision Pro headset on January 19. The device retails for $3,499 and is scheduled to launch February 2.
The device acts as both an augmented reality and a virtual reality headset depending upon the environment. Users can toggle a dial to switch between VR and AR. In augmented reality mode, the user’s eyes will be visible to those who look at the device wearer. Neither YouTube nor Netflix are currently building dedicated apps for the Vision Pro.
Regardless, Apple will soon have entered the augmented reality space. Investors shouldn’t expect the sales of the Vision Pro to substantially influence Apple’s share price. It’s likely that the Vision Pro will add as much as a few billion dollars to Apple’s top line results in 2024 at most.
While that is a substantial number for most firms, Apple is not most firms. Expect, instead, that Apple may again be able to build a cult following for the product as it has