Apple CEO Tim Cook unveils the new iPhone 14 at an Apple event at their headquarters in Cupertino, California, the United States, on September 7, 2022.

Carlos Baria | Reuters

Top an apple Analyst Ming-Chi Kuo said in a blog post on Friday that Apple plans to release second-generation “low-end” and “high-end” augmented reality/mixed reality headsets in 2025.

Apple has not yet announced or even acknowledged plans for a virtual reality headset. But Bloomberg has spoken extensively about the tech giant’s strategy and recently said the company plans to announce its first headset in June after reportedly facing delays.

According to Bloomberg, the first model will cost around $3,000, which means that Kuo’s report on the upcoming “budget” model could indicate that a more affordable version is on the way. This will help Apple appeal to a larger base of users who may not want to spend thousands of dollars on the first version of an AR headset. And it shows that Apple may be using a similar strategy with other product lines.

It sells, for example, the high-end Apple Watch Ultra, but also the more affordable Apple Watch and Apple Watch SE devices. Similarly, it sells AirPods Pro and regular AirPods, as well as professional versions of its Macs and iPads, along with more affordable options.

Kuo said Luxcaseict — a joint venture between Pegatron and Luxshare — and Foxconn will design and manufacture the headsets.

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