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Apple is reportedly developing a virtual reality (VR) headset with ultra-high-resolution 8K displays and advanced technology for eye tracking.

The headset, which is said to offer both VR and mixed reality applications, could be equipped with more than a dozen cameras for tracking hand movements and showing video of the real world to people wearing it, The Verge reported on Thursday.

The report said that Apple won't be running 8K displays at full resolution the entire time. Instead, the device will use eye-tracking technology to determine where users are looking and then rendering peripheral areas in lower resolution to improve performance.

The report claims the price could reach approximately $3,000 and it may hit stores in 2022.

The chips are expected to be internally developed Apple Silicon hardware that could potentially be more powerful than Apple's current M1 chip.

Apple is reportedly experimenting with a variety of control methods, including hand-tracking and eye-tracking, a dial mounted on the side of the headset, and a "thimble-like" accessory, although nothing is said to be finalized just yet.

The alleged design also appears to borrow cues from a variety of other Apple devices, including swappable Apple Watch-style headbands and a HomePod-esque mesh fabric, the report said.