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Apple analyst Ming-Chi Kuo reports that a cheaper second-generation AR/VR headset will be released in 2025.
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The second-generation headset will be available in both high-end and low-end models.
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Apple's manufacturing partner Foxconn is developing the cheaper second-generation headset.
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The first-generation headset is expected to be "extremely expensive," with a price range from $3,000 to $5,000.
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Pegatron is withdrawing from Apple's headset business and Luxcaseict is taking over design and production of the high-end version of the second-generation headset.
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The cheaper second-generation headset will use more affordable components, such as lower-resolution lenses.
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Apple plans to release the cheaper version of its AR/VR headset in 2024 or 2025.
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Apple's first headset is expected to have over a dozen cameras, dual 4K lenses, advanced eye and hand tracking, and an iOS-like interface.
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The probability of the first-generation headset's launch alongside the iPhone 15 in the third quarter of 2023 is rising.
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The first-generation headset is unlikely to be released at a spring event in 2023.