Apple Inc. AAPL was downgraded to neutral from by analysts at D.A. Davidson, who reduced their price target to $185 from $193 per share following the tech giant’s launch of its Vision Pro headset. “We are downgrading shares on our belief that any good news from the AR/VR [augmented reality/virtual reality] product launch is already reflected in the share price,” said Tom Forte, senior research analyst, in a note to clients dated Monday. “In addition, we believe there are important structural challenges for Apple when it comes to consumer adoption of AR/VR hardware, which could limit the near-term impact on its sales and profitability.” Forte said Apple’s “meaningful entry” into AR/VR hardware “should serve as a catalyst of adoption,” but hurdles remain. The initial price tag of $3,499 will do nothing to change a lack of consumer adoption to AR/VR gadgets, he said. The headset is too similar to a combination of top-of-the-line TV, surround-sound systems, a high-end computer with high definition monitors and a high-end camera. It’s a “stretch” to believe consumers would pay more for that headset than a combination of those products, said Forte. Secondly, he said it remains to be seen what new content will be available with Vision Pro, something that’s needed to make it more mainstream. Market Pulse Stories are Rapid-fire, short news bursts on stocks and markets as they move. Visit MarketWatch.com for more information on this news.
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