Apple’s $25B Headset Dream Depends on Affordable AR Glasses

The Apple Vision Pro’s high price and limited app availability have prevented it from being the major success Apple hoped for. Recent reports have suggested that the headset will cease production this year and although a cheaper version was on track to be ready by 2025, it has since been pushed back to after 2027. But Apple could still grow its headset business to $25B if it expands the product line, including smart glasses that connect to an iPhone.

Apple’s $25 Billion Headset Dream Relies on Cheaper AR Glasses Tied to iPhone

In his latest report from the Power On newsletter, Mark Gurman mentioned that Apple is looking for new growth. While the iPhone remains a steady revenue pillar, it no longer provides a sufficiently tailored volume match to Apple’s sales growth metabolic rate. Gurman believes that Apple cannot rely on a single “blockbuster” product for growth, and will drive growth by expanding into various product categories; specifically head-mounted wearables.

Apple currently still sells its first-generation Vision Pro, though it’s been delayed further, along with a subsequent budget model to better round out the lineup. They’re also looking into smart glasses that would pair with an iPhone and offer a mixed-reality experience while delegating some work to the phone.

Although some might find the idea of pairing smart glasses with an iPhone cumbersome, Apple likely sees this setup as a valuable part of its ecosystem. The company had previously tried to develop standalone smart glasses but struggled to achieve significant progress.

CEO Tim Cook noted that the technology for such a product remains elusive, with the main challenge being the need for a chip that could match the iPhone’s performance while consuming much less power—a feat that remains impossible today. Nonetheless, Apple remains hopeful that it will eventually realize this vision in the coming decade.

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