Apple (NASDAQ:AAPL) unveiled lofty expectations for its new Vision Pro mixed reality headset at an event on Monday, claiming that it is “the most advanced personal electronics device ever.”

The Vision Pro wraps around the head, creating an experience that allows users to both immerse themselves in a computer-generated virtual reality and interact with digital objects overlaid on the real world.

Apple hopes that the Vision Pro, which is due to be released early next year, will become the must-have device in the market for AR/VR items, much in the same way its iPhone was at the forefront of mobile computing more than a decade ago.

However, Wall Street may not yet be convinced of its potential. Apple’s share price closed slightly lower Monday despite touching an all-time high earlier in the session, in a sign that investors could be fretting over how the headset’s eye-watering price tag of $3,499 will impact wider demand.

Indeed, in a note to clients, analysts at Davidson said that while they believe the Vision Pro is possibly the “most significant new hardware product since the iPhone” there are still “important structural challenges” facing consumer adoption of AR/VR technology.