Meta Platforms’ vision to sell the future of people working, playing and communicating in virtual worlds may finally have its long-awaited validation, thanks to an unlikely partner. Apple unveiled Vision Pro, its much-anticipated mixed reality product, at its annual Worldwide Developers Conference on Monday. Expected to be available in 2024 for a hefty $3,499, the product allows users to interact with content and popular iPhone apps without a controller. Apple’s announcement comes at a time when interest in the Metaverse appears to have waned, with investors pinning their hopes on the promise of artificial intelligence. It has been more than a year and a half since Meta Platforms bet. Facebook is so confident in the bright future of the Metaverse that it rebranded itself Meta Platforms in 2021 to better reflect its vision beyond social media. At the time, CEO Mark Zuckerberg called Metaverse “the next frontier” and likened it to a social network when the company first launched. With Meta’s big bet, brands like Walmart, Roblox and the popular casual dining chain Chipotle Mexican Grill quickly jumped on the bandwagon. Even luxury brands like Gucci have entered the virtual world. The hype quickly died down as the economy slowed and tech stocks hit a wall, with many investors questioning Meta’s gamble and whether the masses would embrace the vision. A year and a half later, Apple’s virtual worlds may finally provide much-needed support to Meta’s ambitious vision and lure once-skeptical investors back into virtual worlds. “It’s a huge validation point,” said Gene Munster of Deepwater Asset Management. “The grand metaverse is a step forward.” So far this year, Meta has rebounded from the 2022 sell-off, with shares up more than 120%. But those gains stem largely from the company’s focus on cost-cutting and artificial intelligence, rather than the potential of the Metaverse. Apple bets on the “grand slam” For years, Wall Street has regarded Apple as a technology leader. It is one of the largest companies in the world, bigger than many overseas markets. It accounts for nearly 7.5 percent of the S&P 500’s weight, and its market capitalization was about $2.85 trillion at Friday’s close. Shares hit record highs earlier this week before pulling back. “You’re so big, you can’t have a new product that’s doing well,” said Paul Meeks, portfolio manager at Independent Solutions Wealth Management. “Everything you do has to be a grand slam home run to keep stock valuations .” Wall Street and investors are expecting a relatively modest market rollout. JPMorgan’s Samik Chatterjee said in a recent note that while he sees headphones as a “potential catalyst” for the industry’s long-term growth, he’s not prepared for a flood of sales. “Apple has proven in the past that consumer engagement can lead to a willingness to pay a premium. Apple’s focus is clearly on hitting a home run on consumer engagement rather than first device sales. This will undoubtedly be a multi-year journey platform ,” he wrote. JoAnne Feeney of Advisors Capital Management sees the first iteration as targeting a smaller market of wealthier, rabid fans and developers. She expects newer, more affordable models at different price points to emerge in the future, similar to the iPhone’s trajectory. Launching the product, even at an exorbitant price, would incentivize the developer community to build apps for consumers and allow Apple to defer the cost of developing apps, the portfolio manager said. According to Deepwater’s Munster, this should generate similar excitement around Meta’s headphone platform. Apple’s foray into virtual reality couldn’t have come at a better time against a tough macro backdrop, as lingering recession fears and persistently high inflation squeeze consumers’ pockets and deter big-ticket purchases. With the company — and the vision of the metaverse — so reliant on consumer adoption, it creates a difficult near-term setup, Meeks said. But that backdrop could prove to be a boon for Meta’s Quest Pro, which costs less than a third of the price, DA Davidson’s Tom Forte emphasized when he downgraded Apple’s rating by a penny. While some worried that the exorbitant price tag might scare off most buyers, many investors compared it to previous launches. Investors scoffed at the high price tag when the iPhone debuted in 2007, and a similar phenomenon happened when the Vision Pro was released. More than 15 years after the iPhone was released, Apple has captured a major share of the global smartphone market while trying to convince consumers to wait hours in line for the latest model. The iPhone 14 starts at a whopping $799. Apple may not always offer the most consumer-friendly price points, Feeney said, but it always comes to market with top-of-the-line designs and often arrives later than its competitors when it comes to building features. In a recent report, Bernstein’s Toni Sacconaghi highlighted the company’s strong track record of creating new markets through its products. It entered the smartphone, wireless and music player industries, to name a few, and expanded the market tenfold in five years, he said. “Overall, we believe AR adoption will be a long-term process with no significant financial impact for Apple in the short term,” he said.