On Wednesday, analyst Ming-Chi Kuo said his forecast about the M5 chip's role in the Vision Pro update was accurate as Apple Inc. (NASDAQ:AAPL) struggles to gain momentum in mixed reality.
Kuo Highlights Apple's M5 Chip As ‘Most Important' Hardware Upgrade
Taking to X, formerly Twitter, Kuo, an analyst at TF Securities, revisited his year-old prediction about Apple's new M5 chip being the most important upgrade in the Vision Pro had proven correct.
"As I predicted a year ago, M5 chip is the most important hardware upgrade in the new Vision Pro," Kuo wrote.
Apple Launches M5 Chip To Power Next-Gen Devices
On the same day, Apple unveiled its M5 chip, featuring advanced GPUs, Neural Accelerators and a faster Neural Engine designed to enhance AI and graphics performance.
The M5 powers the latest MacBook Pro, iPad Pro and the upgraded Vision Pro headset, all available for pre-order now and in stores on Oct. 22.
Vision Pro Struggles To Gain Traction
The updated Vision Pro includes Apple's new Dual Knit Band, improved battery life and runs visionOS 26, supporting more than one million apps and Apple Immersive content.
Previously, it was reported that Vision Pro sales remain underwhelming — reportedly under 1 million units sold in the U.S. since launch — with analysts citing its high price and limited content library.
During the last earnings call, CEO Tim Cook earlier said the Vision Pro remains "an area we really believe in."
Meanwhile, Apple has reportedly paused work on a cheaper Vision Pro model once slated for 2027 and is redirecting resources to accelerate smart glasses development.
Price Action: Apple's shares climbed 0.63% on Wednesday and have gained 2.25% so far this year, according to Benzinga Pro.
Benzinga's Edge Stock Rankings place Apple in the 56th percentile for Momentum, underscoring its steady performance and resilience compared to peers and rivals.
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Disclaimer: This content was partially produced with the help of AI tools and was reviewed and published by Benzinga editors.
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