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In 2007, Apple released the first generation iPhone. 16 years later, Apple has planned to once again launch a globally groundbreaking product - Apple Vision Pro, a device that integrates digital content into the physical world, kicking off the popularization of the metaverse. Priced at $3,499, or about HK$27,467, it is expected to launch in the first half of next year. Some critics believe the retail price is too high. But is that really a fair assessment?

High Price Because of Fast Technology Advancement

The last groundbreaking product was the first generation commercial mobile phone “brick phone” launched in 1980s, along with the first generation (1G) mobile network. At that time, a brick phone cost around HK$20,000, while the median salary in Hong Kong was about HK$2,700 - the phone price was about 7 times the local salary. Carrying a brick phone and talking on it symbolized wealth, and this often appeared on big screens, becoming one of the trendiest actions. Based on Hong Kong’s 2022 median salary of HK$18,100, the Apple Vision Pro integrating AI, VR, AR and MR is much more affordable. However, we know that the faster technology advances, the less humans are willing to pay. This “eyeglass-like computer” will quickly become popular, and the budget version will be released before long.

AI Stocks Drive US Bull Market

Apple’s stock price has steadily risen this year, though not as shockingly as the chipmaker Nvidia, which has nearly doubled. Among the seven bull markets in US history, four were driven by tech stocks, including the current bull market. Gains in the S&P 500 index are almost entirely contributed by AI-related stocks like Apple, Microsoft, Amazon, Alphabet and Nvidia.

As a semiconductor giant, Nvidia contributes to the metaverse in many ways. In addition to hardware, it also launched the real-time simulation and collaboration platform Omniverse, dubbed the “metaverse for engineers”. German automaker BMW now uses Omniverse for car design, saving substantial costs in space and time. The platform also features Omniverse Avatar, a technical platform powered by generative, interactive AI, integrating voice AI, computer vision, natural language understanding, recommendation engines and simulation technologies. Nvidia’s revenue declined 13% year-over-year in Q1 this year, but its earnings per share rose 28%, and its stock price rose 24% after the earnings release as benefited from the surging global AI demands.

Tech giants adopting the metaverse and AI technology will usher in the next generation of the internet. Hardware and software firms lead the industry, with more groundbreaking products set to emerge. As we eagerly look forward to this, investors may choose to invest in AI- and metaverse-related ETFs tracking global internet companies.