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  • Writer's pictureCollin Christenbury

Apple's New VR/AR Headset: A Compromised Leap Into Metaverse 2.0?

Updated: May 26, 2023

Apple's unannounced mixed reality (MR) headset, rumored to combine virtual reality (VR) and augmented reality (AR) capabilities, has been a subject of great anticipation. However, recent reports shed light on the device's complicated development journey, revealing compromises and constraints that may affect its overall performance. In this updated blog post, we explore the new details about Apple's MR headset, its evolving design, expected features, and the challenges it faces in a rapidly evolving VR/AR market.

A Twisted Path to Reality

According to Bloomberg's Mark Gurman, who has provided insights into Apple's MR headset, the device has undergone significant changes since its inception. Originally envisioned as lightweight augmented reality glasses, it transformed into a VR headset with AR capabilities facilitated by external passthrough cameras.

Now, seven years later, Apple's MR headset has transformed into a pair of expensive goggles that require an external battery pack to address weight concerns. This shift in design is just one example of how Apple had to compromise due to power and heat constraints. The company had to scale back features, including its original vision of using the headset as an external Mac monitor and supporting multi-person video calls.

Costly Development and Expected Losses

Apple has invested considerable resources into the development of its MR headset, with more than 1,000 engineers and an annual budget of $1 billion. Despite an anticipated price tag of $3,000, the report suggests that Apple may sell the headsets at a loss. This strategy mirrors Meta's approach with its Quest headsets, which are sold at a loss, albeit at a lower price point than Apple's offering.

Feature-Rich Functionality and Revenue Potential

Apple aims to incorporate multiple apps found on Macs and iPhones into its MR headset, including Messages, Books, Camera, FaceTime, Mail, Music, and Safari. The company envisions the headset as a transformative technology, akin to the original iPhone release. Being a leader in the AR space could potentially generate $25 billion in annual revenue for Apple, a significant opportunity considering the company's recent challenges in shipping existing Mac products.

Release and Adoption Challenges

Apple is expected to unveil its MR headset at this year's WWDC in June, with a planned release later in the year. However, widespread adoption may not occur immediately, given the anticipated $3,000 price tag at launch. Renowned analyst Ming-Chi Kuo suggests that Apple could introduce two additional versions of the headset by 2025, potentially offering a more affordable option for the average consumer.

The Hopes and Realities of Wearability

Despite its evolving design, Apple hopes that consumers will embrace wearing the MR headset all day, aligning with Meta's vision of the eventual "Metaverse." However, the challenge lies in convincing users to comfortably wear a bulky device, especially one priced at $3,000 and requiring an external battery pack. Apple also anticipates that third-party developers will contribute additional apps to engage users, much like how the App Store transformed the capabilities and popularity of the iPhone in 2008.


Apple's journey into the mixed reality space with its upcoming headset showcases the challenges inherent in developing a groundbreaking device that satisfies technological constraints while delivering a compelling user experience. The anticipated unveiling of Apple's MR headset at WWDC raises excitement, but the device's high price and potential comfort concerns may pose obstacles to widespread adoption.

As Apple navigates the complex landscape of VR/AR technology, third-party developers will play a crucial role in expanding the headset's capabilities and enticing users with innovative applications. While the MR headset may not revolutionize the industry immediately, Apple's long-term vision and commitment to transformative technology may shape the future of immersive entertainment.


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