CNBC’s Jim Cramer on Monday considered a new angle on Apple’s divisive virtual reality headset, the Vision Pro, linking the product to the ongoing battles between the most popular wireless carriers.
Some were shocked just a few weeks ago when Apple execs revealed the Vision Pro’s price tag: at $3,500 a pop, the Vision Pro is one of Apple’s more expensive consumer products. Cramer noted that some rationalized the steep cost by figuring Apple’s Vision Pro would open the doors for less expensive headsets of a similar ilk.
But Cramer sees potential for major wireless carriers like Verizon, T-Mobile and AT&T to capitalize on the new product by offering discounts on plans in exchange for cheaper phones.
“For the first time in history, we don’t have a fair fight among the three major wireless carriers,” Cramer said, nothing that AT&T and Verizon have 7.0% and 7.3% yields, respectively. “These yields are getting high enough that they worry me, because the stocks are trading like Wall Street’s worried about the future of those dividends.”
Cramer pointed out that Verizon offers customers a free iPhone 14, while T-Mobile offers $830 off certain phones, and AT&T gives about a $700 discount. According to Cramer, it’s no skin off Apple’s nose if these carriers choose to ignore the sticker price. These kinds of deals could drive business and competition among the carriers.
“The higher the price, the bigger the eventual bargain,” Cramer said. “But if I were T-Mobile, I’d be thinking when can we ship, because this would be a price war where there would only be one winner, the one without the dividend. They need something that would let them deliver a knockout blow against AT&T and Verizon, and maybe that’s exactly what Apple is about to give them.”
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