Apple’s most-senior “Top 100” executives got their hands on a substantial demonstration of the anticipated “Reality Pro” AR/VR headset in an internal event held in Steve Jobs Theater, said Bloomberg‘s Mark Gurman in his latest “Power On” newsletter.

Gurman says the demonstration, held last week, is the headset’s most significant showcase to date, with the demonstration described as “polished, glitzy, and exciting.” This “key milestone” comes ahead of the headset’s expected public launch in Apple’s annual WWDC event less than three months from now.

Gurman further explains that the Top 100 always had demos of the headset since the project’s inception in 2018, albeit in a much more discreet manner. Such wary demos were “meant to show progress and secure the headcount needed to keep going.”

Gurman warns that the company’s executives are “striking a realistic tone” with the headset’s expectations on the sales front. Mixed reality is described as a “nascent area and far riskier” endeavor for the company compared to its usually instant-hit products. As a result the headset could ultimately have a slow-and-steady course akin to the Apple Watch.

Moreover, the device will start at around $3,000, lack a clear killer app, require an external battery that will need to be replaced every couple of hours and use a design that some testers have deemed uncomfortable. It’s also likely to launch with limited media content. 

Mark Gurman on Apple’s headset potential shortcomings

The headset is expected to “look like a dud next to the company’s exisiting products” sales-wise, projected to only sell a millon units in its first year. Within the next two years, Apple is planning to launch a much more powerful successor to its novel headset in addition to a lower-end model with a more digestible $1,500 price tag.