Yeah, $500 seems basically impossible for an "Apple" product. I mean AirPods are $200 minimum. The latest phones are $1000. Their laptops are all $1000+. I'm not sure how Apple would make a product that has a screen and sell it for the price of a couple pairs of ANC bluetooth earbuds.
They sell iPads for $300. Meta Quest 2 is $250. Plenty of other VR headsets are in the $300-$500 range. Sure you can argue about quality and everything else, but for the average consumer $3500 is one zero too many.