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

[MacRumors]

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.

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.

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

 

[stoid]

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."

 

[macsplusmacs]

My Apple Pay later is ready for this!

Lol!

 

[TheYayAreaLiving 🎗️]

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.

 

[Macalway]

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.

 

[PineappleCake]

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). Yawn.

My interest right now is iPhone 15 Pro( A17 chip) and Macbooks with the M chips. More excited for M3 and later chips

 

[DFZD]

Thanks for the heads up. 2nd gen products are more refined anyway.

 

[bLackjackj]

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.

 

[bLackjackj]

Niche Market!

AR/VR is a niche market 😏

 

[Keymaster]

Not a surprise, Apple usually follows the path of other top market brands...release something that the average person will lust over but can't afford, get people excited, then bring out a lower tier that has most of the functionality and sell a lot more. That means fewer out there to start with, and people who want to live on the edge and will deal with the flaws (and demand they get fixed). It also means they will make more profit than if they flooded the marked with the cheaper one first.

The strategy depends on them producing a product that doesn't suck, and it's not clear AR/VR is really at the point that it will be really desirable beyond being a cool gadget to play games with. But, if the wealthy are buying these, then they will also push for them to be useful, and at least some businesses will respond to that, and eventually that will start to trickle down into an ecosystem that is useful. Maybe in a decade or two we'll all be wearing glasses with a heads up display in them...that will be a lot better than big goggles you can't see out of.

 

[terminator-jq]

This is the first time I’ve heard $5000 for this headset. I just can’t see that happening. No doubt Apple is pricing this headset as a pro device for a niche market and the high end components will certainly drive up cost but at the same time, if Apple wants to position themselves as a key player in the VR/AR race (and have an influence over where the market goes) then they need to make this accessible enough to build some market share.

The $2300-$3000 range sounds about right for what this thing is, including the “Apple Tax”. It’s a $1000-$1500 premium over the high end offerings from Meta and HTC (same with the cost of a PS5 and PSVR2) which makes it accessible enough for developers and prosumers. The fact that they are making this thing work as a second monitor for a MacBook Pro kind of gives the assumption that the price will be in a range comfortable to higher end MacBook Pro owners. I’d suspect Apple launches the cheaper version at around $1500-$1800, especially if the market starts to get competitive.

Honestly, my excitement for this thing is slowly beginning to grow. A good VR experience can be really magical and as a developer and 3D artist, the possibilities are exciting. Let’s hope it actually lives up to the hype.

 

[iZac]

Playing devils advocate here but people do pay $2000 for a height adjustable Studio Display and much more for an XDR. If the rumours are to be believed, this headset is going to have dual 4k tall displays so a similar resolution.

I think releasing the high-end version first may be good for this market since it sets a hardware benchmark that Apple thinks is necessary for VR/AR to be powerful enough, comfortable enough and with enough visual fidelity to be a truly appealing product. The lower end product can naturally fill out over the next few years with key component R&D.

They already have the SoC sorted, so this will push component suppliers to develop higher fidelity and cheaper displays over the next few years. Considering how power efficient the Apple SoC is, they'll natively be much better suited to pushing dual 16 megapixel displays on-device while some Qualcomm chipset stutters and overheats, so they're gonna have a head start on a bunch of competitors that will throw their hat into the ring in the coming months and years.

 

[JapanApple]

1500us or so. better then 3000

 

[Kierkegaarden]

I would rather see Apple go all out and flex on this product to see what it is capable of at the highest level. A less expensive (not cheaper) will most likely come later, but we don’t even know what the first model will come out at. I will buy it regardless of the price.

 

[contacos]

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

 

[unQuestionable]

I strongly believe they will release a developer model at WWDC that is the $3k–$5k price range(like they did with the A-series Mac Mini for M-Series testing), and the “cheaper model” is the more standard glasses vibe for the masses.

 

[TheYayAreaLiving 🎗️]

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.

Just remember how Steve Jobs introduced the iPad into the market. Aggressive Price War! Apple definitely didn't slap an iPad Pro price tag on the original iPad.

Honestly, $3000 is a lot of money for regular consumers. The price should be a lot lowered knowing it's already been out there in the market from different companies. It's not a new product. It's just coming from Apple.

 

[quietstormSD]

Wow the high priced 1st gen wasn’t selling enough so they are now producing a lower cost 2nd gen. These rumors are getting crazier and crazier

 

[MadDawg2020]

How can there be a ‘second generation’ of a product that has not even seen its first generation released?!

 

[MadDawg2020]

Apple's 2nd generation headset is revolutionary and uses the latest in AI technology, in fact it's so advanced the first generation doesn't even need to exist!

 

[MadDawg2020]

Just remember how Steve Jobs introduced the iPad into the market. Aggressive Price War! Apple definitely didn't slap an iPad Pro price tag on the original iPad.

Honestly, $3000 is a lot of money for regular consumers. The price should be a lot lowered knowing it's already been out there in the market from different companies. It's not a new product. It's just coming from Apple.

You are speculating about the price of a second generation of a product that has not even been officially announced as existing as a first generation yet.

 

[MadDawg2020]

Wow the high priced 1st gen wasn’t selling enough so they are now producing a lower cost 2nd gen. These rumors are getting crazier and crazier

The first generation only existed artificially.

 

[Smartass]

Apple's second-generation headset will have a more affordable price within the territory of "a high-end Mac computer."

So, still not affordable

 

[senttoschool]

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.

This makes no sense. $3k is expensive because competitors are shipping $500 - $1000 VR headsets.

They can't garner software support for it because it will sell poorly at $3k - $5k. No developer is going to release apps for it if the install base is low. VR apps are much more expensive to build than phone apps because they're graphically intensive.

AR/VR is a niche market 😏

If Apple releases a $3k - $5k VR headset, it will be a niche in a niche in a niche.

Unless Apple is marketing this expensive device as a developer tool only.

 

[10anta]

Just the one kidney