Apple's mixed reality headset strategy is undergoing significant shifts, with new timelines emerging for both its premium and budget offerings in the expanding wearable technology segment.
Vision Pro 2 Development Takes Priority
According to Bloomberg's Mark Gurman, Apple is now focusing on the second generation of its Vision Pro headset, with a planned release window between fall 2025 and early 2026. The upcoming model will maintain a similar external design to its predecessor but will feature significant internal upgrades, including the integration of Apple's next-generation M5 processor.
Budget Model Faces Extended Delay
In a notable shift from previous plans, supply chain analyst Ming-Chi Kuo reports that Apple's more affordable Vision Pro variant has been pushed back beyond 2027. This delay reflects Apple's strategic reconsideration, acknowledging that price reduction alone may not guarantee mainstream adoption, drawing parallels to the company's experience with HomePods.
Long-term Vision for Wearable Technology
Despite current challenges, Apple envisions transforming its headset business into a $25 billion revenue stream. This ambitious goal hinges on developing a diverse product lineup, including potential iPhone-tethered smart glasses. This approach aims to create a more accessible entry point into Apple's mixed reality ecosystem while addressing current technological limitations.
Strategic Challenges and Future Development
Apple faces significant technical hurdles in developing standalone smart glasses, particularly in achieving iPhone-level performance with minimal power consumption. CEO Tim Cook has acknowledged these challenges, suggesting that the technology needed for fully independent smart glasses remains elusive. The company's current strategy of potentially tethering future glasses to iPhones represents a practical compromise while technology catches up to their vision.
Market Impact and Growth Strategy
While the Vision Pro may not reach iPhone-level success, Apple's broader strategy suggests a focus on creating multiple revenue streams rather than seeking a single breakthrough product. This approach aligns with the company's need to find new growth avenues as iPhone sales growth stabilizes.
