Tim Cook's Vision Pro Price Reveal Dented iPhone-Maker's Stock, But Analyst Explains: 'Eventually 10% Of Apple's Revenue...'

Deepwater Asset Management managing partner Gene Munster reportedly said eventually 10% of Apple Inc's (NASDAQ:AAPL) revenue is going to come from Vision Pro — Apple’s newly introduced mixed-reality headset. Munster's comments come at a time when Wall Street reacted negatively to the release and price tag of the wearable device.

Munster pointed out that Apple is a company that just does not jump into the market. He highlighted two features of Vision Pro that he believes other mixed reality headsets do not possess.

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"Number one is the ability for the user to have their eyes on the real world at the same time. There is a primal instinct with humans, this may sound obscure, but a primal instinct that humans want to have some form, even if it’s a passing, their eyes on the real world," he told CNBC. "Second is gestures and eyes are what is the control of interface for this. That’s important," he said.

"I believe eventually 10% of Apple’s revenue is going to come from this wearable," Munster noted.

Pricing: Munster also spoke about the pricing saying it could be a while before people could see a mass-market conducive pricing that comes below the $1,000 tag.

"…it’s a light year away from where we’re at today and I would add that I think there’s going to be a family of products around here. We are hyper-focused on this announcement today but Tim Cook has long talked about the power of augmented reality. This is not augmented reality. This is a step before it," he said.

Valuation: Shares of Apple closed 1.45% higher and hit a record high on Monday before losing 2.43% in extended trading, according to Benzinga Pro. The expert pointed out there’s a shift in how investors are viewing the Apple story.

"This is not about how many iPhones they’re selling in a quarter, it’s about the active base. We’ve seen this trend in the stock over the last six months. I think mathematically, that base is going to keep rising and I think this should have a premium to consumer staple companies," he said.

Talking about multiples, he said the Apple stock should be in the low 30s and said he sees an upside. "This is not a stock that I think is going to triple in the next three years, if that’s what you’re looking for. That’s not what Apple’s going to deliver," he said.

For a company that can continue to move higher, "investors can sleep well at night knowing that that’s growing and that means higher multiple," he said.

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