Mixed-reality headset to be cheaper than Apple's AR glasses

The company will still unveil its first mixed-reality headset this year, but a more important follow-up product - lightweight augmented-reality glasses - has been delayed.

 

The company originally hoped to release the AR glasses after the launch of its mixed-reality headset, which combines both AR and virtual reality, but that part of the plan is now on hold. People familiar with Apple's deliberations say a cheaper version of the mixed-reality headset will be released in 2024 or early 2025.

 

It's evident how difficult it is for Apple to enter a new market with its shifting plans. The company is betting that AR and VR devices could be a major moneymaker, but the technical challenges of making a consumer-friendly product have plagued much of the tech industry. It appears that Apple will have to wait a long time before offering lightweight AR glasses that people can wear all day, if at all.

 

In contrast to AR glasses, which overlay visuals and information on real-world views, VR headsets provide a more immersive experience, which people typically use to play video games, communicate in virtual meeting rooms, and watch videos. Meta Platforms Inc. owns Facebook and currently dominates the market. In the future, users may be able to wear such glasses throughout their day, but previous attempts — such as Google Glass — have not gained traction.

 

An Apple headset could also become more of a niche product due to its high cost. The initial mixed-reality headset will cost around $3,000. The hefty price comes from its use of advanced and high-resolution displays, more than ten cameras, sensors to determine where users are looking, and a Mac-grade M2 processor as well as a dedicated chip for augmented reality.

 

Through the use of chips similar to those found in the iPhone instead of components found in higher-end Mac computers, Apple intends to reduce the price of the next mixed-reality device. With its lower-end model, Apple may try to get closer to the $1,500 price of Meta's mixed-reality headset.

 

Apple's trademark filings hint at the dual device strategy. In the documents, there are two names: "Reality Pro" and "Reality One." The Pro name may be for the initial model, while the "One" suffix might be for the cheaper model. The dedicated chip is also referred to as "Reality Processor," according to a trademark filing.

 

The company is focusing on the lower-cost headset instead of the AR glasses, which were once planned to be released about a year after the initial headset, said the people, who click here asked not to be identified because the project is still under wraps. As of now, Apple has postponed the release and pared back its work on the AR glasses indefinitely. Originally, Apple planned to release the glasses in 2023, but the launch has been pushed back to around 2025.

 

As part of its first product launch of 2023, Apple released new Mac computers with M2 chips earlier Tuesday.

 

On Wednesday, Apple shares rose 1% to $137.36 in New York. They fell 27% last year, but - like other tech stocks - have been bouncing back so far this year.

 

Unlike AR-only devices that look like glasses, Apple's mixed reality headset will use displays to create an all-encompassing VR environment and pass-through cameras to mimic AR effects.

 

By moving the main functions of a smartphone into the field of view of wearers, Apple sees less-bulky AR glasses as a product that could replace the iPhone. Users could use a device like this to see incoming notifications, get directions, make and take phone calls, and take photos.

 

But finding the right chips, batteries, software and manufacturing to create a lightweight product that can last all day isn't on the horizon yet. The first high-end Apple headset will last about two hours on one charge. Phones, on the other hand, typically last all day.

 

Battery pack details were reported earlier in the Information.

 

The headset’s battery will also be cumbersome, as the company chose not to include it in the device itself to reduce the weight and heating risks of the head-worn product. The battery is connected to the headset via a cable and rests in a user’s back pocket. In today’s technology, it is not possible to create a lightweight device with advanced augmented reality and a built-in battery that can last all day.

 

The vast majority of Apple's Technology Development Group - the 1,000-person-plus unit dedicated to AR and VR - is focused on the first two mixed-reality headsets. When standalone glasses launch, some teams will still explore the technologies that would go into them.

 

It's unclear whether Apple will ever ship AR glasses, but it remains a long-term goal. Meta and Alphabet Inc.'s Google have both announced plans for AR glasses, but those products are still in the early stages.

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