Apple CEO Tim Cook said the new headset "seamlessly blends the real world and the virtual world".
The tech firm also announced its latest iPhone operating system, as well as updates to MacBook Air.
The headset has a two-hour battery life, costs $3,499 (£2,849) and will be released early next year in the US.
The cost is considerably more than virtual reality headsets currently on the market. Last week Meta announced its Quest - which costs $449.
