Apple’s first mixed-reality headset, which it has discussed pricing at around $3,000, could test the limits of how much Apple fans are willing to spend on one of its devices. But the company’s engineers are already at work on a more affordable version of the headset to reach more consumers, according to three people familiar with the effort.

The company, which hasn’t announced any of its headset efforts yet, has discussed pricing the more budget-friendly headset around the price of the iPhone, according to one of the people. The price of Apple’s current smartphone, the iPhone 14, ranges from $800 to $1,600. To help hit the lower price, Apple engineers have discussed using less expensive components in the cheaper device than those in its first headset, which is brimming with cutting edge technologies, the three people said. Both headsets will blend augmented and virtual reality, allowing users to switch between experiences that completely immerse them in digital worlds and others that seamlessly overlay virtual objects onto a person’s view of the real world.