DigiTimes: Apple Partnering With Valve to Develop AR Headset

DigiTimes is reporting this morning that Apple has partnered with U.S. game developer Valve to develop its rumored AR headset, which is expected to launch next year.

valve logo

Apple reportedly has partnered with US game developer Valve to develop AR head-mounted display devices, which may be released in the second half of 2020 at the earliest, with Taiwan's ODMs Quanta Computer and Pegatron said to handle the assembly job, according to industry sources.

Creator of the popular Steam digital storefront and delivery platform, Valve launched Steam machine consoles in 2015 and released its first VR headset, Valve Index, in April 2019.

Notably, Valve worked with Apple in 2017 to bring native VR headset support to macOS High Sierra, leveraging the operating system's then-new eGPU support with a Mac version of Valve's SteamVR software. However, Apple's latest partnership with the company is said to be focused on AR, not VR.

Apple will cooperate with Valve on AR headsets rather than VR devices, as its CEO Tim Cook believes that AR can make digital content become part of the user's world and will be as popular as smartphones with consumers. This has also promoted Apple to step up the development of AR software by recruiting more engineers for graphic design, system interface and system architecture segments.

Back in July, DigiTimes reported that Apple had temporarily stopped developing AR/VR headsets and that the team working on them was disbanded in May and reassigned to other product developments.

However, according to the latest information from the Taiwan website's sources, Apple was actually in the process of shifting from in-house development to collaborative development with Valve.

Just last month, respected Apple analyst Ming-Chi Kuo said Apple was cooperating with third-party brands to launch its first head-mounted AR product. Kuo believes Apple's AR headset is rumored to enter mass production as soon as the fourth quarter of this year in time for an early 2020 launch.

Code found in Xcode 11 and iOS 13 as recently as September has confirmed that Apple is still working on an augmented reality headset of some kind. In addition, there is an icon within the internal Find My app bundlede picting what appears to be an AR or VR headset that looks similar to the Google Cardboard.

apple glasses concept macrumors

MacRumors concept of Apple Glasses

Kuo has said Apple's glasses would be marketed as an iPhone accessory and primarily take a display role while wirelessly offloading computing, networking, and positioning to the ‌iPhone‌.

As early as November 2017, Bloomberg's Mark Gurman reported that Apple's headset would run a custom iOS-based operating system dubbed "rOS" for "reality operating system." At the time, Gurman said Apple had not finalized how users would control the headset, but possibilities included touchscreens, Siri voice activation, and head gestures.

Apple originally aimed to have its AR product ready by 2019, but the company is said to have been relaxed about not shipping a product until 2020.

Quanta Computer and Pegatron are said to be handling the manufacturing and assembly job for Apple's headset. Quanta can reportedly produce AR headsets at a lower cost by leveraging camera lens technology licensed by Lumus, according to today's report.

‌DigiTimes‌' sources often provide reliable information, but the site has a mixed track record when it comes to interpreting that information and accurately deciphering Apple's plans, so treat this report with the necessary degree of skepticism for now until we can corroborate it from other sources.

Related Roundup: Apple Vision Pro
Buyer's Guide: Vision Pro (Buy Now)
Related Forum: Apple Vision Pro

Popular Stories

maxresdefault

Apple Shows Off a Key Reason to Upgrade to the iPhone 17

Saturday February 7, 2026 9:26 am PST by
Apple today shared an ad that shows how the upgraded Center Stage front camera on the latest iPhones improves the process of taking a group selfie. "Watch how the new front facing camera on iPhone 17 Pro takes group selfies that automatically expand and rotate as more people come into frame," says Apple. While the ad is focused on the iPhone 17 Pro and iPhone 17 Pro Max, the regular iPhone...
apple wallet drivers license feature iPhone 15 pro

Apple Says These 7 U.S. States Plan to Offer iPhone Driver's Licenses

Monday February 9, 2026 6:24 am PST by
In select U.S. states, residents can add their driver's license or state ID to the Apple Wallet app on the iPhone and Apple Watch, and then use it to display proof of identity or age at select airports and businesses, and in select apps. The feature is currently available in 13 U.S. states and Puerto Rico, and it is expected to launch in at least seven more in the future. To set up the...
Apple Logo Zoomed

Apple Expected to Launch These 10+ Products Over the Coming Months

Tuesday February 10, 2026 6:33 am PST by
It has been a slow start to 2026 for Apple product launches, with only a new AirTag and a special Apple Watch band released so far. We are still waiting for MacBook Pro models with M5 Pro and M5 Max chips, the iPhone 17e, a lower-cost MacBook with an iPhone chip, long-rumored updates to the Apple TV and HomePod mini, and much more. Apple is expected to release/update the following products...
14 inch MacBook Pro Keyboard

New MacBook Pros Could Now Arrive in March

Sunday February 8, 2026 6:02 am PST by
New MacBook Pro models with the M5 Pro and M5 Max chips could arrive as soon as Monday, March 2, according to Bloomberg's Mark Gurman. In today's "Power On" newsletter, Gurman said that the release of new MacBook Pro models is tied to the release of macOS Tahoe 26.3. The launch is said to be slated for as early as the week of March 2. He added that the M4 Pro and M4 Max models on sale today...
m5 macbook pro deal

Why You Shouldn't Buy the Next MacBook Pro

Tuesday February 10, 2026 4:27 pm PST by
Apple is planning to launch new MacBook Pro models as soon as early March, but if you can, this is one generation you should skip because there's something much better in the works. We're waiting on 14-inch and 16-inch MacBook Pro models with M5 Pro and M5 Max chips, with few changes other than the processor upgrade. There won't be any tweaks to the design or the display, but later this...

Top Rated Comments

ophh1 Avatar
82 months ago
First app: Half Life 3
Score: 19 Votes (Like | Disagree)
tobiastimpe Avatar
82 months ago
Just imagine Apple buying Valve and getting all those games and turning Steam into a part of Apple Arcade. This should be fun.
Score: 10 Votes (Like | Disagree)
farewelwilliams Avatar
82 months ago
I stopped reading after "Digitimes..."
Score: 9 Votes (Like | Disagree)
M3gatron Avatar
82 months ago

Not true, macOS is a better platform for gaming the Windows thanks to Metal and stability. The issue is market share and bad porting. But this is gradually going to change.
Check MrMacright YouTube channels:

Ok so what you mean is that in theory MacOS could be a better platform for gaming but in practice it's not, because it lacks the necessary support and optimisations Windows gets.
Also honestly I haven't seen things evolve in Mac's favour when it comes to gaming and I don't see why they should. Nvidia, one of the biggest forces in AAA gaming doesn't work very with MacOS and the Metal API when it comes to AAA gaming is actually a disadvantage for Apple's platform. It would be way more productive for Apple if they would support Vulkan. Between DirectX 12, Vulkan and Metal, Apple's API will be in the last place in terms of support from game developers.
Score: 8 Votes (Like | Disagree)
frou Avatar
82 months ago
Fast-forward 10 years and I think anyone who was pooh-poohing the concept of AR glasses will be eating their words
Score: 7 Votes (Like | Disagree)
star-affinity Avatar
82 months ago

Not true, macOS is a better platform for gaming the Windows thanks to Metal and stability.
In what way is Metal better than Direct3D for gaming?
In what way is macOS more stable than Windows when it comes to gaming?

How can macOS be a better gaming platform than Windows when the graphics card vendors (AMD and Nvidia currently) are focusing so heavily on driver optimization even for specific games?

It sounds to me that you mean macOS has the potential to be a better gaming platform than Windows, but it currently sure isn't. :)
Score: 5 Votes (Like | Disagree)