The high cost of the original Vision Pro, launched at $3,499, is largely due to its advanced near-4K micro-OLED displays, which are estimated to cost Apple $700 per unit.

Kuo warns that even the upcoming affordable headset may still be perceived as expensive compared to competitors, highlighting the importance of perceived value.

Apple is reportedly exploring the development of smart glasses aimed at a broader mass-market appeal, diverging from the high-end Vision Pro headset.

To refine their approach, Apple plans to conduct focus groups with internal employees to gauge market preferences while keeping findings confidential.

The anticipated affordable version of the Vision Pro is expected to be priced around $2,000, achieved through the use of cheaper materials and components.

Concerns have been raised that a cheaper model might necessitate the removal of key features, potentially undermining its appeal and 'wow factor'.

Despite the introduction of a more affordable headset, analysts believe it may not significantly expand Apple's user base, as the Vision Pro remains a niche product.

The upcoming headset is expected to offload processing tasks to the iPhone, contributing to a lighter and more user-friendly design.

Currently, there are no confirmed new features for the updated Vision Pro compared to the existing model, according to industry analyst Kuo.

There is optimism that Apple will provide trade-in options for early adopters of the Vision Pro to ease their transition to the new model.

The competitive landscape for extended reality (XR) is intensifying, with Meta offering significantly cheaper alternatives, such as the Quest 3 starting at $300.

Reports suggest that production of the Vision Pro may be significantly reduced or halted by November 2024 due to disappointing sales figures.