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

Carlos Barria | Reuters

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

Apple has yet to announce or even acknowledge plans to launch a virtual reality headset. But Bloomberg has reported extensively on the tech giant’s strategy and recently said the company plans to announce its first headset in Juneafter experiencing delays.

The first model is expected to cost around $3,000 according to Bloomberg, meaning Kuo’s report of a future “low-end” model could signal that a more affordable version is on the way. That would help Apple appeal to a larger user base that might not be willing to spend thousands of dollars for the first version of the AR headset. And it shows that Apple can use a similar strategy as it does with its other product lines.

It sells, for example, the high-end Apple Watch Ultra but also more affordable devices in the Apple Watch and Apple Watch SE series. Similarly, it sells AirPods Pro and regular AirPods, and pro versions of its Macs and iPads alongside more affordable options.

Kuo said Luxcaseict – a joint venture between Pegatron and Luxshare – and Foxconn will develop and produce the headsets.

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