Apple is reportedly several years away from launching its smart glasses, as the company is prioritizing the introduction of a more affordable version of the Vision Pro headset alongside a successor model with enhanced features.

The anticipated budget version of the Vision Pro is expected to be priced around $2,000, achieved by utilizing cheaper materials and less powerful components, which may affect its appeal.

An internal email from Apple's Cupertino headquarters highlighted the importance of user testing and feedback for the development of these new products.

However, production of the current Vision Pro headset has been significantly reduced, with reports suggesting that manufacturing may cease by November 2024 due to declining sales.

The competitive landscape for extended reality (XR) is intensifying, with companies like Meta offering cheaper alternatives, such as the Quest 3 starting at $300, which could challenge Apple's pricing strategy.

A significant barrier for the Vision Pro remains the lack of a 'killer app' that resonates with mainstream consumers, as many developers have yet to create native applications for the device.

Despite the push for a lower-cost version, Apple's current strategy suggests a reluctance to compromise on features, which could limit the budget model's appeal.

Experts believe that the upcoming M5 Vision Pro model is crucial for the platform's growth, as Apple needs to provide regular updates to remain competitive.

In contrast, Meta has successfully launched its own smart glasses priced at $299, which allow for video recording and AI interaction, albeit without augmented reality capabilities.

Kuo warns that even the upcoming affordable headset may still be perceived as expensive compared to competitors, complicating Apple's market position.

Additionally, Apple is addressing regulatory challenges in Indonesia, considering a significant investment to comply with local content requirements for its iPhone sales.

In a related move, Apple has announced plans to invest approximately $1.5 billion in Globalstar to enhance satellite services for iPhones, indicating a broader strategy to expand its ecosystem.