It’s night. I’m at a lake near Oregon’s Mount Hood, sitting on the beach. Jazz music is playing as I write. I’m not in the real world.
Well, I sort of am.
I’m wearing Apple’s new Vision Pro headset, which looks like a fancy pair of glowing ski goggles.
Apple’s long-awaited headset, which starts at $3,500, launches in the U.S. on Friday. It’s the company’s first major new gadget to hit the market since the Apple Watch debuted in April 2015. I’ve been testing it for nearly a week. While it has some shortcomings, it’s easily the most fun new product I’ve tried out in years.
Analysts don’t expect the Vision Pro to drive massive amounts of revenue initially. UBS anticipates Apple will ship about 400,000 headsets, leading to a “relatively immaterial” $1.4 billion in revenue this year. However, I’m convinced that if Apple eventually sells cheaper versions, we’ll see millions of people using them in the coming years.
Apple Vision Pro home screen. Here I’m on top of a mountain in Hawaii.
Todd Haselton | CNBC
The Vision Pro offers a new kind of experience that Apple calls “spatial computing.” You sit in your world while looking at a digital one, and then plop different apps around you. You can work, play games, watch movies or surf the web.
Thanks to very sharp displays, and a full M2 processor that’s usually found in Macs, the Vision Pro has the power to do a lot of what you’d expect from an Apple device. There’s a dedicated App Store for Vision Pro apps, but you can also install more than a million iPhone or iPad apps. Or pair it with your Mac and work while looking at a 4K display inside the goggles.
I’m only scratching the surface of the capabilities, but here’s the gist: This is an entirely new type of computing, providing a whole new world of experiences. It feels like the future.
Here’s what you need to know:
What’s good
Apple Vision Pro
Source: Apple
I was skeptical when I first met with Apple to see the Vision Pro. Companies have been trying to do virtual reality and augmented reality and mixed reality or gobbledygook reality for years.
Sometimes it’s cool, but most of the time I’m done after an hour or so.
With the Vision Pro, there are three key parts that come into play. It has super sharp and colorful screens, it allows you to see the world around you by default using “passthrough” technology, and it has a fast processor.
Text is super crisp on the Apple Vision Pro
Todd Haselton | CNBC
The displays help remove the “screendoor” effect that’s common in lower-cost headsets like the Meta Quest 3. That’s where you can see the pixels as you look through a headset. You can easily read text on a website or a book on the Vision Pro. And I was able to watch movies, including in 3D, on screens bigger and nicer than any TV in my house.
Apple Vision Pro.
Source: Apple
The Quest 3 and other headsets also have passthrough. But Apple’s works better. It’s clearer and sharper, enough so that I can comfortably see the room around me in full color and without any lag, though I still can’t read my phone. And I love how you can turn the small digital crown, just like on the Apple Watch or AirPods Max, to adjust the volume or transport yourself into a fully 3D landscape.
You can select different scenes to surround you.
Todd Haselton | CNBC
Virtual travel is a nice touch. You can work or watch movies in Hawaii, by a lake, in White Sands or at Joshua Tree. They’re all relaxing environments with calming sounds and slow animations – like clouds moving across the sky — that help you feel like you’re almost there.
Navigation is easy once you get the hang of it. This reminds me a bit of the iPhone moment, when Apple launched its multitouch display that changed how we interact with phones that had largely been navigated with a stylus, touchpad or keyboard. There aren’t any controllers here. The headset uses sensors to track your eyes (and even verify when you’re making purchases online or in the App Store.) Apple has a quick setup process that aligns the headset to your eyes and then has you look at a series of dots, pinching your fingers as you go so you can calibrate. If you wear glasses, Apple also sells inserts that pop into the headset.
It’s incredibly accurate. You just look where you want to go and then tap your thumb and index finger to select a button or app. There’s a white bar at the bottom of every app, for example, that you can grab to pull and push around. You can adjust the size of any app by looking at the corner and then dragging it out or in at a diagonal angle. And you can swipe through photos or scroll websites by holding your index finger and thumb together while pulling up or down.
Likewise, you zoom in and out by holding those fingers on both hands and pulling outward or inward. You don’t have to flail your hands in front of you. The headset’s external cameras can detect your fingers down in your lap. You can be subtle.
Apple Vision Pro with a bunch of apps open.
Todd Haselton | CNBC
It packs a punch.
I launched more than a dozen apps around me. There’s no point in doing more, because you can’t see it all. I loved setting it up with a browser in front of me, music next to me and a TV screen above it all. But the world is yours to customize. You can open mail and a browser or leave Slack open next to a Word document with your calendar on the other side. Put your text messages on the ceiling if you want. It’s a completely new way to multitask.
Multitasking with the Apple Vision Pro
Todd Haselton | CNBC
A note: My screenshots show apps askew. But, in the headset, they’re all perfectly level.
I didn’t run into any slowdowns during my time with the Vision Pro. Part of that is due to how Apple renders content. It’s technically only sharpening the areas of the screen where you’re focusing, leaving the other areas blurry. That’s why some of the screenshots here look out of focus around the sides. Inside the headset, it’s all super crisp. It’s called foveated rendering, and it allows for optimized processing.
Gaming on the Apple Vision Pro is a lot of fun.
Todd Haselton | CNBC
I loved watching movies with the headset. I lounged on my couch and put up a huge screen across the wall of my living room and watched an hour of “Barbie,” and the two first episodes of “Masters of the Air” before the battery was at about 5%. Another night I watched “Greyhound.” I used the NBA app, which was updated to work on the Vision Pro, to stream four games at once, with the main game in the middle and others pinned to the sides. It’s wild.
With the NBA app I could watch a bunch of games at once.
Todd Haselton | CNBC
Apple also has some specially recorded content that’s so sharp you feel like you’re standing right there next to a rendered dinosaur or a video of a rhinoceros. There’s a slightly terrifying clip with a woman walking on a tightrope between cliffs. Don’t watch if you’re afraid of heights. The clips show the type of content third parties will eventually be able record and publish to the headset. I imagine sports highlights or even sitting courtside at a live game.
The Disney+ app is fun. You can watch movies in one of about four different 3D landscapes. I sat in a racer on Tatooine and watched a bit of a Star Wars movie, but then switched over to watch “Spider-Man: Into the Spider-verse” in 3D. Unlike 3D TVs and movies, which generally flopped, the effects work well in the headset. It’s neat, but I still prefer watching movies in 2D. It feels more natural to me.
Apple Vision Pro FaceTiming and multitasking.
Todd Haselton | CNBC
FaceTime works well. You see a clear video of the person you’re calling on a screen in front of you. But they don’t see you. Or, not the real you. They see a 3D-rendered version of you called a digital Persona. It’s still in beta, and mine looked like a much older version of me. My colleague thought I looked like an 80-year-old man. My wife laughed.
You create a Persona by selecting an option in the settings menu and then removing the headset and following screens on the external display. It asks you to look up, look down, look left, look right, smile, smile with teeth, and close your eyes. Then, in seconds, it creates a 3D Persona.
My digital Persona from the Apple Vision Pro. I think I look great!
It looks more human than cartoony like with other headsets. I spoke with people over FaceTime also using Personas, and it’s much easier to hold a conversation without feeling like you’re two goofy avatars trying to talk. You can hold a real meeting if necessary in your pajamas while your Persona is in work attire. Personas also carry over to other apps like WebEx.
You can see my persona’s eyes on the screen here.
Jay Yarow | CNBC
Your Persona’s eyes can appear on the outside display. Someone will see glowing effects on the outside of the headset if you have screens up in front of you. If they begin talking to you and you’re in an immersive view – like one of the landscapes I mentioned earlier – they’ll start to fade into focus so you can see them. As you look at them, the eyes of your digital Persona become visible on the outside of the headset. It looks like you’re wearing a snorkeling mask.
In real life, I just removed the headset face when my wife came in to chat.
The built-in speakers are great. They get nice and loud and support spatial audio, so if you turn your head away from the movie in front of you, the sound stays in the same place, much like if you were watching a real TV. Music and movies sounded fantastic, with full surround sound. People can hear the audio coming out of the headset, though, so you’ll want to use AirPods in public.
Photos in the Apple Vision Pro
Todd Haselton | CNBC
I love the “spatial photos” you can capture using the cameras on the outside of the Vision Pro or with the latest iPhone 15 Pro and iPhone 15 Pro Max. The camera creates a 3D version of a photo or video. I filmed my 4-month-old daughter eating and my dog’s 9th birthday, for example, in hopes that I’ll be able to come back and relive some of those moments. I wish I had recorded some of these videos when my stepfather was alive because it’d feel like he was in the room with me. Some people might see it as a gimmick, but I found it moving.
Lastly, the build quality is superb. Apple used top-of-the-line glass, screens and metals. It feels like a premium headset and it’s comfortable to wear. My only complaint is that I had to be deliberate to hold it by the metal frame. The padded inserts pop off their magnets if you try to grab them. Those could be stronger, but they were designed to be easily removed so people could share the headset by popping in their own inserts.
What’s bad
Apple Vision Pro
Todd Haselton | CNBC
Apple’s apps work well. You’ll find Notes, Music, Safari, Podcasts, Photos, Apple TV+, Maps and more. Other apps include SkyGuide and Disney+ and there are Apple Arcade games. Many more are coming, as most apps haven’t yet been built specifically for Vision Pro.
The Vision Pro supports more than a million iPhone and iPad apps. But you need to search for each app individually and some of them aren’t available. Netflix and Spotify haven’t been shy about not supporting the Vision Pro, though you can easily access either using the browser. Still, there are lots of others that I couldn’t find: 1Password isn’t there, which made logging into some apps a bit of a pain. You won’t find Uber, DoorDash (but there’s GrubHub!) or Amazon. None of Google’s apps are here, including YouTube TV, though it works fine in the browser.
SkyGuide in the Apple Vision Pro is fantastic.
Todd Haselton | CNBC
Popular games like Diablo Immortal and Genshin Impact aren’t available. Facebook’s apps aren’t here, so no Instagram. These are just a few I noticed.
Some work well, though. I didn’t have any issues with the X iPad app, for example. CNBC’s app worked fine. Others, like Amazon Prime Video, exist but aren’t great. A bug shows a big box in the middle of the screen when you’re watching a movie, but a fix is coming.
For some apps that aren’t yet available, developers are working to optimize them and eliminate bugs.
X on the Apple Vision Pro
Todd Haselton | CNBC
Apple Keychain was sometimes buggy in iPad apps. This is Apple’s version of 1Password, and I rely on it to enter my username and passwords. It generally works fine. But if you have two usernames for apps, like my wife and I do for Amazon Prime Video or Peacock, the app locks up when you try to select a different login. I informed Apple of the bug.
The floating keyboard is useful for search or typing quick messages, but you won’t be able to type very fast at first. You look at each letter on a digital keyboard and select it, or reach out and tap the digital keyboard. I got faster during my time with the Vision Pro, but nowhere near as quick as I am on my iPhone or a real keyboard. You can just use Siri voice-to-text to respond to iMessages or enter URLs in the browser (and launch apps). Still, you’re going to want to use a keyboard if you have to do a lot of typing.
There’s also the battery pack that plugs into the headset with a proprietary plug that you twist in. I don’t mind it. I thought the pack worked fine, but it would be a lot easier if it was just embedded into the headset, though that would add weight.
Should you buy it?
Apple Vision Pro
Todd Haselton | CNBC
I’d buy the Vision Pro right now if I had an extra $3,500. I’d even consider trading in my iPad Pro and MacBook Pro to offset the cost since the headset gives me a lot of the same capabilities. But that’s not an option.
You’ll definitely love it for movies. I think a lot of people will also really enjoy being able to read the news and browse the web while having a huge TV screen open and lounging on their couch. Some may find they can work in it. I did. It’s fun.
Apple’s real opportunity will materialize when it finds a way to mass produce the Vision Pro at closer to $2,000, or less. Until then, it may be a niche product. But the experience blows everything else out of the water. It’s Apple’s most exciting product in years and it’s the best example yet that this will become a new way of computing.
Alphabet CEO Sundar Pichai during the Google I/O developers conference in Mountain View, California, on May 10, 2023.
David Paul Morris | Bloomberg | Getty Images
Alphabet‘s stock gained 3% Friday after signaling strong growth in its search and advertising businesses amid a competitive artificial intelligence environment and uncertain macro backdrop.
“GOOGL‘s pace of GenAI product roll-out is accelerating with multiple encouraging signals,” wrote Morgan Stanley‘s Brian Nowak. “Macro uncertainty still exists but we remain [overweight] given GOOGL’s still strong relative position and improving pace of GenAI enabled product roll-out.”
The search giant posted earnings of $2.81 per share on $90.23 billion in revenues. That topped the $89.12 billion in sales and $2.01 in EPS expected by LSEG analysts. Revenues grew 12% year-over-year and ahead of the 10% anticipated by Wall Street.
Net income rose 46% to $34.54 billion, or $2.81 per share. That’s up from $23.66 billion, or $1.89 per share, in the year-ago period. Alphabet said the figure included $8 billion in unrealized gains on its nonmarketable equity securities connected to its investment in a private company.
Adjusted earnings, excluding that gain, were $2.27 per share, according to LSEG, and topped analyst expectations.
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Alphabet shares have pulled back about 16% this year as it battles volatility spurred by mounting trade war fears and worries that President Donald Trump‘s tariffs could crush the global economy. That would make it more difficult for Alphabet to potentially acquire infrastructure for data centers powering AI models as it faces off against competitors such as OpenAI and Anthropic to develop largely language models.
During Thursday’s call with investors, Alphabet suggested that it’s too soon to tally the total impact of tariffs. However, Google’s business chief Philipp Schindler said that ending the de minimis trade exemption in May, which created a loophole benefitting many Chinese e-commerce retailers, could create a “slight headwind” for the company’s ads business, specifically in the Asia-Pacific region. The loophole allows shipments under $800 to come into the U.S. duty-free.
Despite this backdrop, Alphabet showed steady growth in its advertising and search business, reporting $66.89 billion in revenues for its advertising unit. That reflected 8.5% growth from the year-ago period. The company reported $8.93 billion in advertising revenue for its YouTube business, shy of an $8.97 billion estimate from StreetAccount.
Alphabet’s “Search and other” unit rose 9.8% to $50.7 billion, up from $46.16 billion last year. The company said that its AI Overviews tool used in its Google search results page has accumulated 1.5 billion monthly users from a billion in October.
Bank of America analyst Justin Post said that Wall Street is underestimating the upside potential and “monetization ramp” from this tool and cloud demand fueled by AI.
“The strong 1Q search performance, along with constructive comments on Gemini [large language model] performance and [AI Overviews] adoption could help alleviate some investor concerns on AI competition,” Post wrote in a note.
An Amazon employee works to fulfill same-day orders during Cyber Monday, one of the company’s busiest days at an Amazon fulfillment center on December 2, 2024 in Orlando, Florida.
Miguel J. Rodriguez Carrillo | Getty Images
For 10 years, Aaron Cordovez has been selling kitchen appliances on Amazon. Now he’s in a bind, because most of his products are manufactured in China.
Cordovez, co-founder of Zulay Kitchen, said his company is moving “as fast as we can” to move production to India, Mexico and other markets, where tariffs are increasing under President Donald Trump, but are mild compared with the levies imposed on goods from China. That process will likely take at least a year or two to complete, he said.
“We’re making our inventory last as long as we can,” Cordovez said in an email.
Zulay is alsotemporarily raising the price of some of its milk frothers, smores roasting sticks and other products. The company’s popular kitchen strainer now costs $12.99, up from $9.99 before Trump announced his sweeping tariff proposal earlier this month.
Amazon merchants are hiking prices for everything from diaper bags and refrigerator magnets to charm necklaces and other top-selling items as they confront higher import costs. E-commerce software company SmartScout tracked 930 products on Amazon that have seen increased prices since April 9, with an average jump of 29%.
The price hikes affect a range of categories, including clothing, jewelry, household items, office supplies, electronics and toys.
The trade war with China has threatened to upend sellers on Amazon’s third-party marketplace, which accounts for about 60% of the company’s online sales. Many merchants are based in China or rely on the world’s second-largest economy to source and assemble their products.
Sellers are now faced with the conundrum of raising prices or eating the extra costs associated with Trump’s new tariffs. It’s an existential threat for many sellers, who subsist on razor-thin margins and have, for the last several years, dealt with rising costs on Amazon tied to storage, fulfillment, shipping and advertising fees along with pricing pressure from increased competition.
CEO Andy Jassy told CNBC earlier this month that the company was “going to try and do everything we can” to keep prices low for shoppers, including renegotiating terms with some of its suppliers. But he acknowledged some third-party sellers will “need to pass that cost” of tariffs on to consumers.
Amazon’s stock price is down 15% so far this year, sliding along with the broader market. The company reports first-quarter earnings next week.
Goods imported from China now face import duties of 145%, though Trump said Wednesday his administration is “actively” talking with China about a potential deal to lower tariffs. Chinese officials on Thursday denied that trade talks are taking place.
About 25% of the price increases observed by SmartScout were initiated by sellers based in China, said Scott Needham, the company’s CEO. Last week, stainless steel jewelry maker Ursteel hiked prices on four of its products by $6.50, while apparel brand Chouyatou raised the price of some of its dresses by $2. Both businesses are based in China’s Zhejiang province.
Anker, a Chinese electronics brand and one of Amazon’s largest sellers, has raised prices on one-fifth of its products sold in the U.S., including a portable power bank, which went up to $135 from $110, SmartScout data shows.
Representatives from Anker, Ursteel and Chouyatou didn’t respond to requests for comment.
Zulay, headquartered in Florida, is one of many U.S.-based sellers raising prices. The company is also cutting costs. Cordovez said he’s been forced to lay off 19% of his workforce and slash online ad spending by 85%.
Desert Cactus, based in Illinois, is also taking action. Joe Stefani, the company’s president, has been looking to move production of some of his brand’s college-themed merchandise out of China and into Mexico, India and Vietnam. About half of Desert Cactus’ goods come from China, while the rest are made in the U.S., Stefani said.
An Amazon worker moves a cart filled with packages at an Amazon delivery station in Alpharetta, Georgia, on Nov. 28, 2022.
Justin Sullivan | Getty Images
One of the company’s top products is a customizable license plate frame that’s manufactured in China. At the start of Trump’s first term in 2016, Stefani’s company paid import and shipping fees of 4% on the license plates. That rate has since skyrocketed to 170%, he said.
“The tariffs can’t stay this high,” Stefani said. “There’s so many people that just aren’t going to make it.”
Stefani said he expects Desert Cactus will end up raising prices on some products, though he’s worried shoppers might be put off by sticker shock.
“Will someone be willing to pay $50 for a hat on Amazon?” Stefani said. “You know it’s going to be expensive at the ballpark, but on Amazon we don’t know.”
Dave Dama, co-founder of health and beauty business Pure Daily Care, said the price to manufacture one of his skin-care products in China jumped to $25 from $10. Most Amazon sellers will have no choice but to raise prices, he said.
“If you were selling something for $40 and making a $7 or $8 profit at the end of the day, with these tariffs, those days are gone,” Dama said. “You can’t do that anymore. It’s unsustainable.”
Pure Daily Care plans to stagger price increases over several weeks, and only on products “we absolutely need to,” to keep Amazon’s algorithms from ranking it lower in search results or losing the valuable buy box, he said. The buy box determines which listing pops up first when a shopper clicks on a particular product, and the one that gets purchased when they tap “Add to Cart.”
An Amazon spokesperson said the company’s pricing policies continue to apply.
“As always, sellers set their own prices, and we regularly monitor how we highlight great prices as Featured Offers to provide customers with low prices across a wide selection,” the spokesperson said in a statement.
Dama said his company has enough inventory for some products to last up to six months, which it aims to “stretch as long as possible” in the hope that China and the U.S. can reach a trade deal. The company is also forgoing some sales promotions and discounts, while pausing spend on some display and video ads.
Regarding his inventory, Dama said, “We can try to stretch that seven, eight, nine months, which buys us a lot more time for this thing to work out, hopefully.”
Chinese start-up Pony.ai said Friday it will develop autonomous driving technology in partnership with Tencent Cloud and deploy robotaxi services on tech giant Tencent’s WeChat and other applications.
The Nasdaq-listed company which specializes in autonomous vehicle technology, particularly robotaxis androbotrucks, said in a press release that the deal will include cooperation in areas such as cloud services, map data, information security and intelligent cockpit ecosystems.
The arrangement will also see the two companies integrate Pony.ai’s robotaxi ride-hailing services within Tencent’s popular WeChat app as well as other applications like Tencent Maps.
Both companies had been in talks “for quite some time,” Pony.ai CEO James Peng told CNBC on the sidelines of the Shanghai Auto Show on Friday. He cited Tencent’s huge user base and its cloud offerings as factors supporting the “win-win” collaboration as the start-up continues to scale up.
Following the partnership, Peng said that “hopefully in the near future,” users would be able to call Pony.ai robotaxi rides straight through the WeChat app.
“Pony.ai possesses industry-leading autonomous driving technology accumulations, while Tencent excels in cloud services, mapping, and cockpit ecosystem technologies,” Vice President of Tencent Group and President of Tencent Smart Mobility Zhong Xiangping was quoted as saying in the Friday release.
“This strategic partnership between the two parties is not only about complementing each other’s technologies and resources but also marks a new starting point for collaborative innovation,” he added.
The release said that the partnership would also see both companies collaborate on the development, testing, and operation of Robotaxis, particularly in L4-level autonomous driving.
According to SAE International, L4 is a type of autonomous driving that allows drivers to take their eyes off the road in designated areas. For comparison, L3 is considered a hands-off system, but drivers must actively monitor the vehicle and be ready to take over the wheel.
The Tencent Cloud agreement comes a day after it was reported that Pony.ai unveiled its L4, seventh-generation robotaxi solution at the Shanghai Auto Show on Wednesday. The company’s shares surged about 40% in the U.S. on Thursday.
The start-up continues to establish itself as a prominent player in China’s autonomous driving industry. The company obtained China’s first permit to charge fares for fully driverless taxis in core parts of a business district of Shenzhen, where Tencent is headquartered.
However, the firm may be implicated in increasing trade tensions between China and the U.S. as the latter is a market Pony.ai considers “hugely important” to its expansion plans.
James Peng, co-founder and chief executive of Pony.ai this week reportedly told the Financial Times that the company is considering a secondary listing outside the U.S. amid mounting concerns that Washington will push for the delisting of Chinese companies off the New York Stock Exchange.
If this were to happen, it would come less than six months after the company’s initial public offering in the U.S. Notwithstanding, Peng told FT that a lot of factors need to be considered.