Apple Inc. is expected to unveil a mixed-reality headset at its annual software developer conference, marking the company’s first significant foray into a new product category since the introduction of the Apple Watch nine years ago.

The launch will pit Apple against Facebook-owned Meta Platforms in a market crowded with devices that have yet to gain traction with consumers.

Apple’s device is likely to blend a video feed from the outside world with a virtual world displayed on screens inside the headset, similar to Meta’s Quest Pro from last year and Quest 3 announced last week.

Analysts anticipate that Apple’s headset will include premium features such as a high-quality display and hand-tracking so that it can be controlled without an external controller. It will also almost certainly cost much more than the planned $500 Quest 3.

According to IDC, companies sold 8.8 million headsets last year, a 20.9 percent decrease from 2021. Sales will have more than halved by the first quarter of 2023.