Apple Inc., seeking a breakthrough product to succeed the iPhone, aims to have technology ready for an augmented-reality headset in 2019 and could ship a product as early as 2020.

Unlike the current generation of virtual reality headsets that use a smartphone as the engine and screen, Apple’s device will have its own display and run on a new chip and operating system, according to people familiar with the situation. The development timeline is very aggressive and could still change, said the people, who requested anonymity to speak freely about a private matter.

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