The more affordable Apple headset may come in more expensive and budget versions.

Rumor has it that the second generation of Apple’s AR/VR headset could attract a larger user base with a couple of more affordable models offered at various price points.

• What’s happening? Apple analyst Ming-Chi Kuo believes that the cheaper model of the Apple AR/VR headset will be offered in more expensive and budget versions in 2025.
• Why care? Selling two models of a product at different prices can broaden the targeted market, increase sales, and provide potential buyers with more choice.
• What to do? Read Kuo’s report on Medium.

Two versions of a cheaper Apple headset in 2025?

Apple’s first-generation AR/VR headset should be ski-goggle-like, lightweight, and packed with sophisticated hardware like Mac-level chips, 8K micro-OLED screens, and advanced eye/hand tracking. Unfortunately, the first device is considered prohibitively expensive, with estimates ranging from $3,000 to $5,000.

As such, the first model is expected to be exclusively targeted at developers building apps for it and wealthy enthusiasts (Kuo’s shipments will be “extremely low”). The second generation, however, should be priced much more affordable than the first model.

Kuo expects it to come in two different versions:

The Apple AR/MR headset of the second generation consists of two models: older and younger. The high-end and low-end will be designed and manufactured by Luxcaseict and Foxconn, respectively. The current launch schedule for both models is likely to be in 2025.

Sounds like a smart strategy to attract a larger user base.

How much should a cheaper headset cost?

Do not want to overpay for the goods and do not care about advanced components? Then take the younger version. Want the best experience without cheap equipment? In this case, you will tend to opt for a high-end model.

A well-known analyst notes that supplier Luxcaseict (a joint venture between Luxshare ICT and Pegatron) will take over the AR/MR development team and manufacturing resources from Pegatron in the first half of 2023.

“Essentially, this means that Luxshare ICT will take over the subsequent design and manufacture of this product. Such changes will lead to a subsequent acceleration in the decline in the cost of the headset, which Apple is counting on, ”he wrote.

However, it can cost as much as a high-end Mac.

Bloomberg ‘s Mark Gurman and The Information ‘s Wayne Ma first reported that Apple will offer a “budget”version of its mixed reality headset that may have less-than-stellar hardware like lower-resolution lenses and iPhone-level chips.

Nikkei Asia recently reported that contract manufacturer Foxconn, best known for its iPhone assembly work, “will be working on the parallel development of a lower-cost second-generation augmented reality device.”The report states that in order to reduce overall costs, Foxconn will try to automate mass production and increase productivity.

While Apple’s second-generation headset is expected to be more affordable than the pricey $3,500 first-generation model, you should still expect it to cost “like a high-end Mac,”an unnamed source told Nikkei..

By comparison, the Meta Mixed Reality Headset costs $1,500.

The launch date of the first generation headset is a moving target. It was supposed to be announced in 20120, then 2021, then 2022. Bloomberg’s Mark Gurman recently said we should keep our fingers crossed ahead of the spring announcement, but it now appears that Apple may have delayed the reveal until WWDC23 in June.

Assuming Gurman is right, Kuo believes the headset could be officially released alongside the iPhone 15 series in the third quarter of 2023.