Apple's anticipated Augmented Reality and Virtual Reality (AR/VR) headset will need to be wirelessly tethered to an iPhone or another Apple device to unlock full functionality.
According to a report from The Information, Apple is working on a custom chip for the headset.
The headset will be similar to the WiFi-only version of the Apple Watch, which requires an iPhone connection to work.
The iPhone maker may use a fabric exterior to reduce the headset weight, but the company is also using a fan, an unusual move for Apple given its emphasis on fan-less design.
The upcoming Apple VR headset will be similar to the Oculus Quest, and some prototypes being tested include external cameras to enable some AR features.
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Apple is also reportedly testing the ability to use these cameras to track hand movements, and include software features like a virtual keyboard.
In addition, the VR headset will be considered a niche product and could be "far more expensive" than the $300 to $900 headsets available from rivals.
Apple is developing two head-worn products, including a combination AR/VR headset for release in 2022 and "full-fledged" AR glasses for release by 2023.
Apple is planning to reach out to third-party developers as early as 2021 to encourage them to build apps for the hardware.
The AR headset is expected to sport a sleek design so that it is lightweight and comfortable for the wearer to roam around for prolonged periods.
