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Unity Software (U) Stock Price Cools Off After Massive Apple Rally

Simon Mugo trader
Updated 7 Jun 2023

The Unity Software Inc (NYSE: U) stock price cooled off two days after Apple unveiled the Vision Pro mixed reality headset, driving the company’s share price higher. Unity’s shares rallied after Apple revealed that it would use Unity’s software to power apps available on the device.


YOUR CAPITAL IS AT RISK. 76% OF RETAIL CFD ACCOUNTS LOSE MONEY.


In an exciting turn of events, Apple shares fell slightly after the announcement as investors digested the high price point at which the Vision Pro headset will be sold at a whooping $3,499 per piece. The price is out of reach for most consumers who buy the iPhones.

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Investors expect headsets such as the Vision Pro to one day replace smartphones as consumers preferred communication devices. However, this will not happen if the headsets are priced at such a premium to iPhones and other smartphones.

Pricing dynamics are a crucial component of consumer goods. Hence, the Vision Pro could only threaten the iPhone and other smartphones if its price falls and becomes more reachable for everyday consumers. 

Furthermore, given that the Vision Pro model unveiled by Apple is the very first iteration of the device, we can expect it to have some issues,w which will be corrected in later versions, making it a smart choice for most consumers to wait for later versions of the device that are more refined. 

Unity Software is a small company whose stock is set to rally further if Apple continues using its software for the Vision Pro headset. However, we cannot guarantee this will always be the case, given that Apple is working hard to bring all its operations in-house. 

After many years of relying on Intel chips, the company brought chip design in-house with its Apple silicon. We could see a similar move in future regarding Unity Software as the company refines the Vision Pro headset and releases future versions. 

However, Unity Software stands to continue benefitting from Apple’s choice to use its software on the mixed reality headset. Furthermore, we cannot rule out a potential company acquisition by Apple, given that it is currently valued at $13.57 billion, while Apple has billions in free cash. 

*This is not investment advice. 

Unity Software stock price. 

The Unity Software stock price was trading up 2.90% premarket at $36.88 after the massive rally triggered by the Apple event.


YOUR CAPITAL IS AT RISK. 76% OF RETAIL CFD ACCOUNTS LOSE MONEY.


Simon has over six years of professional trading experience across FX, commodities and equities. He has a strong passion for financial markets and is particularly focused on price action trading