That's based on details around the custom processors designed by the tech giant for the headset, and where work was largely completed last year, it says.
The company's system-on-a-chip and two other chips - made by Taiwan Semiconductor Manufacturing (TSM+0.3%) - reached tape-out, suggesting that the physical designs are done and the chips are ready for production.
But the new chips lack Apple's "neural engine," according to the report, so while they could function in a lighter mode without a tethered device, it would still need a connection for its most powerful VR uses.
The question of "stand-alone vs. not" has been key to those observing VR/AR adoption by consumers. Facebook's (FB-1.5%) Oculus Rift headsets depended on a tether to a personal computer to generate the processing power needed, but they have been discontinued in favor of the Oculus Quest stand-alone headsets.
And Sony's (SONY+0.9%) approach with the PlayStation VR is a tether to its PlayStation 4 and 5. Other stand-alone options have come in the form of HTC's Vive and Lenovo's (LNVGY-2.6%) Mirage Solo.