Dan Ives, Managing Director of Equity Research at Wedbush Securities, joined Closing Bell's Kristen Scholer to discuss the 'game-changing' augmented reality headset and what it means for Apple moving forward, as the tech giant looks to blow past rivals like Meta and Alphabet.

Apple's Vision Pro Headset Unveiled: 'A Revolutionary Product'

Apple's annual worldwide developers conference kicked off in Cupertino, California. Earlier and the tech giant unveiled some new products and features. The biggest news is Apple's first step into augmented reality with the vision pro headset and with this Apple trying to revolutionize spatial computing as it's called by allowing users surroundings to become the canvas for any task from messaging to meditating internet browsing, even streaming according to the company. So for more, I want to bring in Dan Ives, Managing Director of Equity Research at Security, Dan, it's been a while but it's great to see you, especially on a big news day like today. What are the takeaways? Look? I think it's probably the most revolutionary product we've seen from Apple in the last 8 to 10 years. And and I think in the labs at Cupertino, this is going after the developers right now. There's a battle for developers from Microsoft to Google, especially in terms of the transformative A I trend. I think it is just the first step on a broader A I strategy that Apple is laying out a home run product in terms of going after developers. I had a markets guest on an expert Dan, after the stock market closed today, saying that he thinks a I, all of the money that we've seen piling into tech this past week, a record amounts in fact is worth it. That A I really is going to be game changing. Do you agree with that? I mean, covering tech stocks since late nineties, going back to the bubble. I think it's probably the most transformative tech trend that we've seen going back to the internet. And I think it's an iphone moment. That's what I'll call it in terms of what we're seeing with A I, there's a game of Thrones going on, you see it from Microsoft, of course, the video lead in the race and, and then you have Google and others. But for Apple here, I mean, this is really about them building out A I within their own ecosystem and we continue to view it as an $800 billion market over the next decade. Interesting, certainly a hefty price tag that $3500 what kind of market dan exist for a product at that price? Sure. So I think the initial knee jerk will be, it's super expensive. Consumers aren't gonna buy. Let's be clear, this is really focused initially on developers, developers to build use cases, apps and ultimately the thousands and 1000 apps and ultimately in content like things like Disney and unity and other partnerships. I think two years from now this is probably sub 1500 in terms of the price point. And that's why this is the way Apple rolls out products. And I think that's really what they're focused on in terms of courting developers on a much broader strategy over the next 4 to 5 years. So it's interesting, we saw a familiar face, not from Apple, from Disney Bob Iger reinstated as the chief executive at that company show up for this presentation. Of course, we know that the two have ties in a partnership. How does that change the game, this dynamic that we saw basically play out on stage? Yeah, it's all about content and and when you have Disney with that golden library of content bringing that into Apple, it adds just more and more credibility, more use cases for developers and ultimately consumers. And that's really the focus here. I mean, you, you kind of fast forward 23 years from now, you'll be watching the Super Bowl at a party and you could have a quarter to a half that maybe could be you actually watching, you know, using a device such as this in terms of vision pro because of different angles being at the game, in terms of their virtual feel. That's really the goal here in terms of how Apple is going to further insert itself into the consumer ecosystem. So in terms of how this might stack up to what else is on the market, Dan I think you highlighted earlier. Apple usually is not the first to market, but it does come out with a refined product once it does actually go to market, right? So of course, we have meta headset to take advantage of the Metaverse alphabet. Google also has a headset as well. How does apple compare? Yeah, I mean, this would be called like a Peter Lugers. We are comparing what I think what meta has is more White Castle. You know, in terms of, you know, relative to from a product portfolio, I think this is a game changer. I think it really puts those as almost table stakes in terms of what we're seeing come out of Apple because they're a hardware company. That's why this is a company that's going to be on the verge again of hitting three trillion market cap. You look at meta, there's software, social media, you look at Google search you and obviously advertising they're not hardware companies. That's why when Cupertino comes, it changes the market. When Cupertino comes, it changes the market. I like that sound by Dan in terms of what else might be in store, how the roll out is going to go and the strength of Apple's stock. What do you think plays out from here by then? They're going into what I call a mini super cycle going into iphone. 15, you have 250 million iphones that haven't upgrade in four plus years that will hit this fall services continues to rampire. I think that's 1.3 to 1.4 trillion. Now, I could argue this is a $3.5 trillion mark cap. Now, obviously, it's not rosy and rainbows macro, but you look at how they're sort of navigating this. It just shows demand continues to be rock and Gibraltar despite many that I think were very skeptical in the end going into this year. All right, Dan, I is managing director of Equity Research at Wedbush Securities Dan. It's great to see you. Thank you.