Kuo: Apple plans a cheaper second-gen AR/MR headset with two high-end and low-end models, built by Luxcaseict and Foxconn, respectively, likely coming in 2025
Apple's cheaper second-generation AR/VR headset will come in two high-end and low-end models, according to Apple industry analyst Ming-Chi Kuo.
Context & Ripple Effects
Apple’s reported path has shifted away from near-term lightweight glasses: related coverage said technical difficulties led it to postpone the glasses project while pursuing a lower-cost mixed-reality headset. That makes the reported two-model follow-on a continuation of a headset-first roadmap rather than the earlier progression toward glasses.
Earlier Kuo coverage mapped mixed reality as an interim product before AR glasses; the new supplier split adds a manufacturing structure for serving different headset tiers.
First-order effects
- Under Kuo’s reported plan, Luxcaseict would build Apple’s high-end second-generation headset while Foxconn would take the low-end version, giving each supplier a distinct role in the product line.
- Apple would have a lower-cost mixed-reality offering in development alongside a premium model, rather than relying on a single second-generation headset configuration.
Second-order effects
- The split requires Apple to differentiate component choices and production requirements between Luxcaseict’s premium build and Foxconn’s lower-cost build, making supplier execution part of the tiering strategy.
- Foxconn’s assignment would align its Apple hardware manufacturing role with the lower-cost headset path that emerged after the lightweight glasses delay.
Third-order effects
- If Apple maintains the two-tier approach, mixed-reality headsets may become the company’s bridge product while lightweight AR glasses remain technically constrained, extending the headset-first roadmap outlined in Kuo’s earlier product sequence.
The trend: Apple’s reported AR strategy is moving from a single advanced headset vision toward tiered mixed-reality hardware as lightweight glasses face technical delays.