In a strategic move, tech giant Apple Inc. (NASDAQ:AAPL) is reportedly developing a budget-friendly version of its Vision Pro headset. This move is expected to cut production costs by approximately 50%, as per industry insiders.
What Happened: A report on Tuesday by DigiTimes highlighted that Apple is working on four distinct versions of the second-generation Vision Pro headset, with plans to release two.
The top-tier model will maintain the high-end specifications synonymous with the original Vision Pro.
In contrast, the second version is projected to target the broader consumer market owing to its lower price point.
The target customers and prices of the other two models remain uncertain.
The price of the mass-market model will be primarily contingent on Apple’s success in lowering production costs. The company is reportedly striving to halve the Bill of Materials compared to what the current Vision Pro costs.
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The more budget-friendly version is estimated to go into sample production in the latter half of 2024, with a possible launch envisioned for the second half of 2025. While DigiTimes’ track record on specific product details is somewhat inconsistent, these rumors seem credible in light of previous reports on Apple’s headset development plans.
Back in October, there were talks of a headset version priced at a more consumer-friendly $2,000, which would come without the external display, have lower-resolution internal displays, and a lower grade of chip instead of Apple Silicon.
Why It Matters: Apple’s drive to create a cheaper Vision Pro headset aligns with the company’s strategy to widen its consumer base. The $3,500 mixed-reality headset was primarily marketed as a premium product, which may not have resonated with the mass market.
By potentially offering a $2,000 price cut, Apple seems poised to bridge this gap and appeal to a wider audience, even if it means compromising on some features.
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Disclaimer: This content was partially produced with the help of Benzinga Neuro and was reviewed and published by Benzinga editors.
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