Apple‘s new Vision Pro headset has sparked a resurgence of interest in head-worn computers that immerse users in a virtual world.
Engineers have been dreaming about virtual reality since 1968 when a professor at the University of Utah built the first 3D VR headset, and since then some of the most powerful consumer electronics companies have released headsets, including Nintendo, Microsoft, Meta, Google, and Sony. None have been a hit.
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Now Apple’s at the table and virtual reality experts and developers say it has a chance to succeed where others haven’t.
“When people ask me what’s really special about this announcement, in one word, it’s Apple. The largest tech company in the world and also the most responsible,” said Ori Inbar, co-founder of Superventures and the CEO of Augmented World Expo, an industry conference. “They always put everything behind every product they put out there. And that’s exactly the message they’re sending to the XR industry, but also to everyone else out there.”
Apple’s reputation and record afford it the benefit of the doubt when it comes to genuinely new technologies, and many consumers already own and like Apple’s products.
Apple commercialized the success of multitouch displays with the iPhone, which transformed the smartphone industry by showing the world a new way to interact with phones. It may be able to replicate that in the VR industry with the Vision Pro’s gesture and voice-based user interface. Unlike other headsets, it doesn’t require a controller.
“Part of the Apple effect is they’ve built up this brand equity, they’ve done it time and time again, across multiple categories, whether it’s the watch, music player, and of course, the smartphone,” said Tipatat Chennavasin, general partner at the Venture Reality Fund. “What I think is really interesting about it, too, is they clearly laid out for their vision for the future — this is the next iPhone, the next big platform.”
The Apple Vision Pro is significantly more powerful than nearly all competing products on the market. It’s equipped with two high-definition screens, a battery of cameras and sensors, and custom processors that reduce latency and lag. Put simply: It can do more than any other headset.
The increased horsepower under Apple’s goggles has also enabled a relatively new concept, sometimes called “XR,” “mixed reality,” or “passthrough,” or, as Apple dubs it, “spatial computing.”
The cameras on the outside of the Vision Pro can display the real world in near-real time inside the headset, which makes the technology less isolating, and addresses one long-time issue with virtual reality: Users can’t see what’s around them while they’re in virtual reality.
But Apple also has to change the public perception of virtual reality. The moment that everyday consumers wear headsets on a daily basis may still be years away.
Huge specs
The new Apple Vision Pro headset is displayed during the Apple Worldwide Developers Conference on June 05, 2023 in Cupertino, California.
Justin Sullivan | Getty Images
One notable aspect of Apple’s Vision Pro is that it has a lot of raw power and expensive parts. Past initial Apple products didn’t emphasize processor speed, display resolution, or specifications.
The Vision Pro does. A short and incomplete list of its components we know so far:
Two Micro-OLED displays about an inch in diameter, each with the resolution of over a 4K television.
An Apple M2 processor — the same as in a laptop — and a specialized R1 processor for cameras and other visuals.
Eye tracking
Six microphones
12 cameras and five sensors for monitoring hand gestures
All these specs put together means that the Apple Vision Pro operates at a higher level of fidelity than products currently on the market, like Meta’s $299 Quest 2, which uses a mobile processor and has lower resolution screens.
It also costs a whole lot more: It costs at least $3,499, and likely even more if users opt for custom lenses or other potential upgrades, like storage.
The powerful specs allow the Vision Pro to display the outside world through video feeds on the inside of the headset in real time, making it the first device to do both high-quality VR, which transports users to a virtual world, and AR, which integrates virtual objects into the real world.
“Apple seems to be all in on the notion that it will let you see out, but it will let you see out using cameras and passthrough and very, very, very, low latency and very, very, very, high-powered computing and processing applied to the problem,” said Avi Greengart, analyst at Techsponential, who demoed the headset earlier this week at Apple’s campus.
That’s compared to rival devices like Magic Leap and Microsoft Hololens, which use transparent displays, that require less processing power but offer lower-quality images.
This level of visual quality means that demos can be better, and that developers don’t have to limit themselves based on the hardware. There’s headroom for new experiences that require a lot of processing power.
It also establishes a floor for virtual reality experiences going forward: Once people have tried an Apple headset, with thousands of dollars of computing gear, it will be more difficult to use a cheaper headset without seeing the tradeoffs.
“Apple is unapologetically saying, in order to do VR, or AR, or what they’re calling ‘spatial computing,’ this is the experience you need to offer, and that’s the price point it’s going to cost,” said Greengart. “Anyone else coming out with a product at that price point would simply be dismissed as niche. But Apple, because of its history with consumer products, and because of its history iterating, you can expect the experience gets better over time, and the price comes down — well, hopefully it comes down.”
A new interface
Apple Vision Pro
Source: Apple
Just as the iPhone did, the Apple Vision Pro introduces a new kind of user interface.
The iPhone introduced multi-touch screens, replacing styluses and mechanical keyboards, and enabled web browsing and full-color maps on a pocket device.
“The user experience is always the most important aspect. The most important part of the iPhone wasn’t shrinking it down, the display quality, the multi-touch, but it was making that UX feel good and magical,” Chennavasin said.
The Apple Vision Pro replaces controllers with simple gestures. The user’s eyes become the cursor and a simple tap of the thumb and index finger selects a button.
“No other headset has really introduced eye-plus-pinch as the main interaction modality,” said Jamin Hu, technical chief of Doublepoint, a private firm working on software to enable gesture-based interactions. “Apple is the first one that we’ve seen focusing on building their entire operating system to support eye tracking.”
Apple Vision Pro
Source: Apple
Eye tracking often uses small sensors to see where the user’s gaze is resting. It works well, according to people who had controlled hands-on demos earlier this week. “Meta’s headset has a similar feature, but it doesn’t work nearly as well as it does on Apple Vision, if it works at all,” wrote CNBC’s Steve Kovach.
The controller-less, gesture-based interface has been a goal of the VR industry for years.
“I think it’s pretty well known in the industry that eye-plus-pinch is magical. It’s even faster than the computer mouse. And it’s easier to learn,” said Hu.
Apple even brought up its record on new computer interfaces as one reason to believe in the potential of Vision Pro.
“So in the same way that Mac introduced us to personal computing and iPhone introduced us to mobile computing, Apple Vision Pro will introduce us to spatial computing,” Apple CEO Tim Cook said at the launch.
The Apple ecosystem
Apple CEO Tim Cook stands next to the new Apple Vision Pro headset.
The VR industry has waited years for Apple’s formal entry. Developers and experts believed Apple could set the standard once it launched its own headset. It invented the iPhone, and it could be inventing the next major mainstream computing product now.
“You have this element that Apple never comes into an industry until they really know this is going to be something special,” said Sean Mann, CEO of RP1, a technology firm working to enable immersive online experiences.
Apple is likely to have the strongest pipeline of apps that could take advantage of the unique aspects of a virtual reality headset. It already has millions of software developers and the Vision Pro will support iPhone and iPad apps at launch. No other headset has that.
“Apple has the unique ability to catalyze developer interest in new platforms,” Greengart said. “For the Apple Vision Pro, the App Store is going to be there on day one.”
Plus, Apple has a product ecosystem it can integrate with, from iPhones, Apple Watches, and even the Mac. The headset can even function as a massive Mac monitor for getting work done.
Apple also has retail stores that are well-suited to be a first-experience in virtual reality for people who are curious about the technology. Apple’s headset needs significant configuration, including head scans and custom lenses for people who wear glasses — but if any company was well-suited to providing those demos to give them the best chance to elicit a “wow,” it’s Apple.
“No one else in the industry has what Apple has. Apple has the phone, they have the watch, they have the desktop, and now they have a headset, and they all work with each other,” Mann said. “Something that I capture on my cell phone now could easily be shown in my new Vision Pro, and that ecosystem doesn’t exist in any other VR manufacturer.”
Getting developers excited for an untapped market
Source: Apple
The industry is still nascent. Data from Forrester, a research firm, found that 79% of online adults don’t currently use a VR headset.
“It can be read as, ‘My gosh, most people aren’t going to use this device’ or it can be read as, ‘Hey, there’s an opportunity to now penetrate an untapped market with something that will help everyday users,” said Mike Proulx, a research director at Forrester.
It’s expected to be a low-volume product, however, selling hundreds of thousands of units over the year, according to TFI Securities analyst Ming-Chi Kuo, versus the tens of millions of iPhones Apple sells in a quarter.
But many people in the VR industry think that’s fine for this kind of product, which isn’t meant for the mainstream yet due to its price, its clunky battery pack and its novelty.
Instead, it’s possible to see the Apple Vision Pro as a sort of developer’s kit. Sure, some Apple fans and enthusiasts will buy it, and everyone wants to try it, but what it’s really doing is kicking off a gold rush for software developers to make must-have apps for the platform.
Eventually, like other computers, prices for Apple’s Vision could come down, updated models could become slimmer and lighter, and it could become a must-have like a smartphone.
“I talked to a lot of developers who are already in the XR space, and all of them have said they’re interested in getting this headset and getting their hands on it and using it. Every single one of them,” said Anshel Sag, an analyst at Moor Insights.
When the iPhone introduced multi-touch, advanced phone cameras, and mobile internet, it birthed Uber and Instagram. Now, it costs $3,500 to start tinkering with software that could become an everyday experience for regular people as the market potentially expands.
“If you could’ve gotten the iPhone two or three years before it was released, and had access to understand the hardware, don’t you go for that? How much would you pay for that? This is the future today,” Chennavasin said. “If I was a developer, $3,500 is a small price to pay for that.”
It’s been a brutal year for Tesla shareholders so far, and a hugely profitable one for short sellers, who bet on a decline in the company’s stock price.
Tesla shorts have generated $11.5 billion in mark-to-market profits in 2025, according to data from S3 Partners. The data reflected Monday’s closing price of $227.50, at which point Tesla shares were down 44% for the year.
The stock rallied about 4% on Tuesday, along with gains in the broader market, heading into Tesla’s first-quarter earnings report after the close of trading. Tesla didn’t immediately respond to a request for comment.
The electric vehicle maker is expected to report a slight decline in year-over-year revenue weeks after announcing a 13% drop in vehicle deliveries for the quarter. With CEO Elon Musk playing a central role in President Donald Trump’s administration, responsible for dramatically cutting the size and capacity of the federal government, Tesla has faced widespread protests in the U.S. and Europe, where Musk has actively supported Germany’s far-right AfD party.
Tesla shares plummeted 36% in the first quarter, their worst performance for any period since 2022, and have continued to drop in April, largely on concerns that President Trump’s sweeping tariffs on top trade partners will increase the cost of parts and materials crucial for EV production, including manufacturing equipment,automotive glass, printed circuit boards and battery cells.
The company is also struggling to keep pace with lower-cost competitors in China, and is a laggard in the robotaxi market, which is currently dominated in the U.S. by Alphabet’s Waymo. Tesla has promised to launch its first driverless ride-hailing offering in Austin, Texas, in June.
Tesla has been the biggest stock decliner among tech megacaps this year, followed by Nvidia, which was down about 28% as of Monday’s close. The chipmaker has been the second-best profit generator for short sellers, generating returns of $9.4 billion, according to S3.
Nvidia is currently the most-shorted stock in terms of value, with $24.6 billion worth sold short, S3 said. Apple is second at $22.2 billion, and Tesla is third at $17.6 billion.
Musk has a long and antagonistic history with short sellers, who have made plenty of money at times during Tesla’s 15 years on the stock market, but have also been burned badly for extended stretches.
In 2020, Tesla publicly mocked short sellers, promoting red satin shorts for sale.
“Limited edition shorts now available at Tesla.com/shortshorts” Musk wrote in a social media post in July of that year, as the stock was in the midst of a steep rally.
Two years earlier, hedge fund manager David Einhorn of Greenlight Capital posted a tweet that he received the pairs of short shorts that Musk had promised him.
“I want to thank @elonmusk for the shorts. He is a man of his word!” Einhorn wrote. Einhorn had previously disclosed that his firm’s bet against Tesla “was our second biggest loser” in the most recent quarter.
In February 2022, after reports surfaced that the Department of Justice was investigating two investors who had shorted Tesla’s stock, Musk told CNBC that he was “greatly encouraged” by the action and said “hedge funds have used short selling and complex derivatives to take advantage of small investors.”
PlainSite founder Aaron Greenspan, a former Tesla short seller and outspoken critic of Musk, sued the Tesla CEO alleging he engaged in stock price manipulation for years through a variety of schemes.
The case was removed to federal court last year. In 2023, Musk’s social network X banned Greenspan and PlainSite, which publishes legal and other public and company records, from the platform.
Instagram on Tuesday launched its standalone Edits video creation app that offers features similar to those already available from TikTok parent Bytedance.
The new app allows creators to organize project ideas, shoot and edit video, and access insights about content. Edits includes background replacement, automatic captioning and artificial intelligence tools that can turn images into video.
“There’s a lot going on in the world right now and no matter what happens, we think it’s our job to create the most compelling creative tools for those of you who make videos for not just Instagram but for platforms out there,” said Adam Mosseri, the head of Instagram, in a Reel posted in January announcing the app.
Edits appears to be Meta‘s answer to CapCut, TikTok’s sister app that is also owned by China-based parent company ByteDance, which allows users to create and edit video on their phone or computer.
Instagram Edits app.
Courtesy: Instagram
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With TikTok’s future uncertain, Instagram’s move to launch Edits could be seen as a step to gain ground in the next era of short video creation in the creator economy.
Earlier this month, President Donald Trump for a second time extended the deadline for ByteDance to divest TikTok’s U.S. operations or face an effective ban. The deadline is now mid-June.
Tesla CEO Elon Musk wears a ‘Trump Was Right About Everything!’ hat, as he, U.S. Trade Representative Jamieson Greer and Central Intelligence Agency Director John Ratcliffe attend a cabinet meeting at the White House, in Washington, D.C., U.S., March 24, 2025.
Carlos Barria | Reuters
Tesla is set to report first-quarter earnings on Tuesday after market close.
Here’s what Wall Street is expecting, based on a survey of analysts by LSEG:
Earnings per share: 39 cents
Revenue: $21.11 billion
Tesla is expected to report a slight revenue decline from $21.3 billion in the same quarter a year earlier. However, investors are going to be more focused on what the future holds after concerns about tariffs and CEO Elon Musk’s close ties to the White House pushed the stock price down 44% so far this year as of Monday’s close.
Earlier this month, Tesla reported a 13% decline in deliveries to 336,681. Tesla blamed the lower deliveries, in part, on the need to suspend production temporarily at its factories while it upgraded lines to start manufacturing a refreshed version of its popular Model Y electric SUVs.
Deliveries are the closest approximation of vehicle sales reported by Tesla but are not precisely defined in the company’s shareholder communications.
At an all-hands meeting with employees last month, Musk tried to reassure staffers that they were still in good hands, and to “hang onto your stock.” He pointed to the popularity of the Model Y, and Tesla’s potential in robotics, artificial intelligence and autonomous vehicle technology.
At the meeting, Musk also made light of the backlash against Tesla elicited by his work for President Donald Trump to reduce the size of the federal government, and his endorsements of Germany’s anti-immigrant AfD party, along with other political rhetoric and antics.
“If you read the news it feels like, you know, Armageddon,” Musk said on a livestream of the employees meeting. “It’s like, I can’t walk past the TV without seeing a Tesla on fire.” He followed up saying, “This is psycho, stop being psycho!”
That was before Trump’s announcement earlier this month of widespread tariffs, the one area where Musk has publicly broken with the Trump administration. On X, he called Peter Navarro, Trump’s top trade advisor and tariff proponent, a “moron” and “dumber than a sack of bricks.”
Tesla stands to take a significant hit from the president’s proposed tariffs, assuming they don’t get rolled back. Tesla manufactures cars in the U.S. for domestic sales so it’s not subject to the 25% tariff on imported autos, but the hefty levies on other components and materials could be severe.
Tesla relies on suppliers in Mexico and China for items like automotive glass, printed circuit boards and battery cells, among other parts essential for the production of its cars. The company has sought an exemption from the U.S. trade representative for equipment imported from China that it uses in its factories.