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Apple is quietly advancing a new product category aimed at mixed reality and augmented reality audiences, moving toward a fully immersive three dimensional environment and its own version of a metaverse.

The company is preparing the first arrival of an augmented reality headset, a range product anticipated to carry a price tag between two and three thousand dollars. This estimate comes from a Bloomberg report by Mark Gurman in his Power On newsletter, which tracks Apple’s internal strategy and product cadence.

The proposed price is expected to reflect the hardware’s capabilities, including a powerful Apple Silicon M2 processor, additional front facing cameras, and high resolution displays. The device would run on a dedicated operating system crafted by Apple, known as realityOS, designed to deliver seamless experiences across visuals, apps, and services.

The headset is envisioned as a platform for Apple content creation as well. Gurman notes ongoing work within Apple’s teams dedicated to headset development, including the creation of immersive video experiences meant to be consumed in virtual reality. The initiatives point to new content workflows and production pipelines that would support games, videos, and interactive media delivered through the headset.

Within Apple’s Technology Development Group, efforts focus on integrating the headset with existing Apple applications and services. Siri, Finder, and Shortcuts are singled out as potential touchpoints that could be adapted to operate within the mixed reality environment, ensuring continuity with the broader Apple ecosystem and user habits.

Another notable thread described by Gurman centers on the vision for a broader virtual world, a 3D mixed reality space that expands the reach of the platform while avoiding an explicit branding label tied to the term metaverse. The concept aligns with a future where users navigate virtual environments that complement real world interactions rather than replace them, mirroring industry shifts toward blended experiences with tactile and social dimensions.

Apple is expected to begin production of the XR headset, identified by a likely model code N301, in early 2023 with aims to debut before the summer. The launch would mark Apple’s first new product category tailored for video, gaming, and communication experiences under the brand, signaling a strategic expansion beyond its traditional hardware lineup.

Beyond the initial model, Apple reportedly plans a broader lineup characterized by a lighter variant focused on augmented reality, tentatively described by a subsequent model that emphasizes comfort and extended wear while maintaining the core AR capabilities. The roadmap suggests a continuing evolution of both hardware form factors and software ecosystems to support an integrated XR experience across devices.

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