According to Bloomberg, citing people with knowledge of the matter, the headset will serve largely as a VR device similar to Sony’s PlayStation VR and Oculus but offer limited AR features.
The report says the headset will serve as a “high-end, niche product that will prepare outside developers and consumers for its eventual, more mainstream AR glasses.” Apple declined to comment on the report.
The headset would be the first new product type from the company since it released the Apple Watch in 2015.
Virtual reality was lauded during the last decade as companies such as Oculus and HTC introduced headsets, but interest waned in the devices over concerns with pricing and usability, as many headsets required staying tethered to a computer. Interest appears to have rebounded since then with new devices such as the Oculus Quest 2, which starts at $299 and can operate independently.