Apple’s second-generation AR/VR headset will be offered in high-end and low-end versions and shipments are expected to be about ten times that of the first-generation model, according to Apple industry analyst Ming-Chi Kuo.

Multiple rumors have suggested that Apple’s first AR/VR headset coming later this year will be around $3,000 and positioned as a device for developers, content creators, and professionals. Apple expects to sell just one headset per day per retail store, and the company has told suppliers that it expects sales of seven to 10 million units within the first year of availability.

The steep price point is due to the high-end hardware Apple uses, but the company reportedly wants to make a future version more affordable by using less expensive components like lower-resolution lenses.

This could see Apple introduce a series of two tiers of second-generation devices to appeal to a broader customer base, similar to the way it introduces the standard and more premium Pro-branded iPhones each year.

The company’s plans to release a cheaper version were first reported before the informationWayne Ma and bloombergMark Gurman earlier this year, but the assertion that it will be one of two second-generation models is a more specific claim attributed to Kuo.

According to a report, Apple’s manufacturing partner Foxconn is already developing a cheaper version of the second generation of headphones, but it’s still believed to be in the early stages. Gurman said the second generation headset could arrive in 2024 or 2025, while his Kuo sources indicate a 2025 release is more likely.

The first-generation model of Apple’s mixed reality headset is expected to be announced during Apple’s opening WWDC keynote on Monday, June 5.

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