Foxconn Reportedly Working on Apple's Cheaper Second-Generation Headset

Apple's long-rumored AR/VR headset has yet to be announced, but Nikkei Asia today reported that the company's manufacturing partner Foxconn is already developing a cheaper second-generation version of the headset.

apple ar headset concept 1

Image Credit: Ian Zelbo

The report cites an unnamed "executive with knowledge of the development" who claims that Apple's first headset will be "extremely expensive," with industry estimates ranging from $3,000 to $5,000. The source believes Apple's second-generation headset will have a more affordable price within the territory of "a high-end Mac computer."

From the report:

Foxconn is also helping with the AR project, four people told Nikkei Asia. The longtime iPhone assembler will work on parallel development of a cheaper second-generation AR device, four sources said. Foxconn's focus will be on automating mass production and improving production performance to help Apple lower overall costs, according to two people familiar with the plans.

Apple's plans to release a cheaper version of its AR/VR headset were first reported last month by The Information's Wayne Ma and Bloomberg's Mark Gurman. The headset would supposedly use more affordable components, such as lower-resolution lenses.

Apple's first headset is expected to be announced at WWDC in June and will reportedly have over a dozen cameras, dual 4K lenses, advanced eye and hand tracking, a physical knob similar to the Apple Watch's Digital Crown, and many other advanced features. On the software side, the device is said to have an iOS-like interface with a grid of apps.

Related Roundup: AR/VR Headset
Tag: Nikkei

Top Rated Comments

stoid Avatar
4 weeks ago

first headset ... estimates ranging from $3,000 to $5,000
second-generation headset will have a more affordable price within the territory of "a high-end Mac computer."
I'm confused. I would consider $3-5K within the territory of "a high-end Mac computer."
Score: 26 Votes (Like | Disagree)
bLackjackj Avatar
4 weeks ago

Niche Market! If Apple really wants this AR/VR headset to be successful. Release the cheaper model first (see how it plays in the market) and then move towards releasing an expensive model second.
As someone who has worked in the Marketing & Sales field in IT,..I'm sorry but that makes absolutely no sense. It makes complete sense, if the objective is to release a product with a perception of high quality. They need to stand out in the overcrowded VR/ AR marketplace.

They are wanting it to have the feel of a high end product and still garner the software to support it. I'm guessing they will have only under 5 software developers they are currently working closely with.

3k is NOT expensive when you consider the quality of hardware & sensors that have been rumored. Just look at how much their computer hardware is.
Score: 14 Votes (Like | Disagree)
TheYayAreaLiving ? Avatar
4 weeks ago
Niche Market! If Apple really wants this AR/VR headset to be successful. Release the cheaper model first (see how it plays in the market) and then move towards releasing an expensive model second.
Score: 10 Votes (Like | Disagree)
contacos Avatar
4 weeks ago
I don’t understand who this is for? The B2B sector where the price hardly matters cuz your employer is going to pay for it? What developer is going to bother to spent money and development time on this when it’s out of reach for most customers. Have you ever seen an iPad Pro exclusive app? I don’t think so!

Personally, I’d only be interested in this if A) I was rich and B) if it was so advanced that I could dive into a world that looks actually real (think avatar) to get away from German winter for a bit every day haha imagine visiting Hawaii from your living room. However, so far everything VR/AR I have seen looks like a „updated“ version of Nintendo Wii graphics
Score: 8 Votes (Like | Disagree)
MadDawg2020 Avatar
4 weeks ago
How can there be a ‘second generation’ of a product that has not even seen its first generation released?!
Score: 7 Votes (Like | Disagree)
Macalway Avatar
4 weeks ago

I'm confused. I would consider $3-5K within the territory of "a high-end Mac computer.

I'm confused. I would consider $3-5K within the territory of "a high-end Mac computer."
Right, this is silly. More like extremely expensive for a niche gadget. The comparison is absurd.

So what is this we are going to see? Doesn't sound very interesting if I can't own one. Boring. For those non-business users that will buy one, I envy your vast wealth. This I know. So in nutshell the real release date is maybe late next year or farther out (like much).

They should have just ...not done it this way. Like SJ showing the first iPhone that 'just costs too much for anyone' .Lines would have to wait....for years.

Sorry to be so negative, but I'm finding it so easy.
Score: 6 Votes (Like | Disagree)

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