Apple Pauses Vision Pro 2 Development to Focus on Budget VR Headset

Apple is shifting gears in its virtual reality strategy, halting development on the Vision Pro 2 to concentrate on a more affordable headset, which could be priced similarly to Apple's most expensive iPhones.

The Vision Pro, with its sleek design and advanced hardware, made waves upon its 2023 release, but its $3,500 price tag limited its audience. Now, according to a new report, Apple is prioritizing a cheaper alternative.

Rumors have circulated since the Vision Pro's debut that Apple would expand the product line to include both a "Pro" and a more budget-friendly version. Reports from The Information indicate that Apple has been reducing the team working on the Vision Pro 2 and redirecting resources toward the development of this lower-cost headset.

Apple's decision seems to be driven by a strategic pivot away from the high-end successor. The company has allegedly notified at least one supplier to halt production of components for the premium headset, signaling a significant shift in focus. However, the budget model, codenamed N109, will still share many features with the Vision Pro, which presents its own set of challenges.

Details of the budget headset emerged in 2022, revealing Apple's goal to price it in line with the most expensive iPhones, around $1,600. While still a premium price for a VR device, it is less than half the cost of the Vision Pro. Apple's designers aim to maintain the same display technology, though this is one of the most costly components. Other compromises may include fewer cameras, a simpler strap, and less advanced speakers.

Initially, Apple planned to release the budget headset by late 2024, but the lack of a working prototype has pushed the expected release to the end of 2025. Despite the extended timeline, this focus on a more accessible model could prove beneficial. Suppliers have reportedly cut Vision Pro component production by up to 50% due to lower-than-expected demand.

A $3,500 headset was never destined for mass market appeal. Even enthusiastic early adopters might hesitate to purchase another high-cost VR device so soon. Focusing on a budget-friendly model could attract a broader audience and potentially reinvigorate Apple's VR ambitions. The Information suggests Apple hasn't entirely abandoned the Vision Pro 2 but will revisit it after the cheaper headset is in production.