Apple Inc. (NASDAQ:AAPL) is reportedly working on the next generation of its Vision Pro headset, with rumors suggesting significant changes in design and pricing.
What Happened: The tech giant is developing two variants of the second-generation headset. One version is expected to be a premium option, improving upon the first Apple Vision Pro, while the other is anticipated to be a more affordable, consumer-grade edition.
Apple's first-generation headset, launched at WWDC 2023 and released in February 2024, has been praised for its design and utility in sectors like healthcare. However, its $3,500 price tag has reportedly hindered sales.
Rumors suggest that the consumer-grade version of the Apple Vision Pro follow-up could be significantly cheaper. Apple is reportedly aiming to reduce the bill of materials to half of what Vision Pro costs, potentially bringing the price down to between $1,500 to $2,500.
To achieve this cost reduction, Apple may make significant cuts to some of its highest-priced components, such as the camera and sensor array, the use of two Apple Silicon chips, and twin 4K microLED displays. The new headset might also feature a simpler headband design and the use of AirPods for spatial audio.
The tech giant could also eliminate the EyeSight display, which shows the user's eyes externally, and reduce the specifications of the internal virtual reality screens.
Moreover, unlike the first-generation Apple Vision Pro, which can operate independently, the next version might need to be tethered to a host device like an iPhone or Mac. This could help reduce onboard processing costs and introduce a "tier" system into the range.
As for the next premium Vision Pro model, last month it was reported that Apple's follow-up to the headset's high-end model has been halted, in favor of developing a more affordable alternative, reported AppleInsider (via The Information).
The tech giant is also reportedly working on reducing the weight of future Vision Pro headsets after considering feedback from many users.
Why It Matters: In June 2023, Apple shares briefly surpassed the previous record of $182.94 set on January 4, 2022, reaching a new all-time high of $184.95. However, after the company unveiled its first augmented reality headset, the Apple Vision Pro, shares unexpectedly pulled back, contrary to many expectations.
Last week, the company started selling its mixed-reality headset in China. However, the product's price, approximately 18% higher than in the U.S., has ignited a debate among consumers.
In May earlier this year, Apple reported its second-quarter results that outperformed muted goals. The tech giant reported quarterly revenue of $90.75 billion, a 4% decrease year-over-year, and quarterly earnings per diluted share of $1.53, according to Benzinga Pro data.
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Disclaimer: This content was partially produced with the help of AI tools and was reviewed and published by Benzinga editors.
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