Apple is stopping work on its next high-end headset to focus on a cheaper model, reports The Information

(Reuters) – Apple has stopped work on its next high-end Vision headset, The Information reported on Tuesday, citing an employee at a manufacturer that makes key components for the Vision Pro.

The iPhone maker is still working to launch a cheaper Vision product with fewer features before the end of next year, the report said, citing a person working in the company’s supply chain and a person involved in manufacturing the headsets.

Apple did not immediately respond to Reuters’ request for comment.

The company plans to sell its Vision Pro in eight new countries, including China and Japan, to boost sales of the $3,500 device, which has struggled with waning demand after initial excitement.

Earlier this month, Apple held its annual developer conference, where it unveiled its long-awaited AI strategy and announced a partnership with ChatGPT maker OpenAI.

The event also gave a boost to Apple shares, which have risen by over 11 percent since the beginning of the year, after lagging behind the shares of the major technology companies at the beginning of the year due to weaker iPhone demand in China.

Apple had originally planned to split its Vision product into two models, similar to the standard and Pro versions of its iPhone, the report said.

The company has deprioritized the Vision Pro’s successor over the past year, assigning fewer employees to work on the next model over time while focusing on reducing the cost of first-generation components, the report added.

(Reporting by Zaheer Kachwala in Bengaluru; Editing by Alan Barona)