Apple Inc. (AAPL  ) is reportedly working on an upgraded version of its popular AirTag item tracker and plans to launch it in 2025.

What Happened: In his latest weekly "Power On" newsletter, Bloomberg columnist Mark Gurman revealed that the new AirTag, internally known as B589, is currently in the testing phase with Apple's manufacturing partners in Asia.

The device is expected to feature an upgraded chip for improved location tracking. "Personally, I'd like a louder speaker, better battery life and a version optimized for wallets," Gurman said.

Previously, tech analyst, Ming-Chi Kuo also indicated a possible postponement in the mass production of AirTag 2 until 2025. Earlier Kuo also mentioned that AirTag will be integrated with the Vision Pro headset as a component of the spatial computing ecosystem. However, the specific workings of this integration are still unclear.

In January 2024, it was reported that the decision to delay the launch of the next-generation AirTag to 2025 was because of an overstock of the first-generation product.

Why It Matters: First introduced in April 2021, Apple's AirTags have quickly gained widespread popularity as a tool designed to help users locate lost personal items such as luggage at airports, among other uses.

However, over the years, worries have arisen regarding the misuse of AirTags for stalking. In October 2023, a class-action lawsuit was filed by victims alleging that the AirTag was being used as a "weapon of choice" by stalkers.

Victims claim that the low cost of the device, priced at just $29, and the extensive prevalence of iPhones, make AirTags an appealing tool for stalkers. Despite Apple's implementation of an alert system to notify individuals about being tracked by an unknown AirTag, victims contend that it fails to offer sufficient protection.

Meanwhile, last week it was announced that Apple and Google are collaborating to prevent unwanted Bluetooth tracking.

The announcement outlines operating system-level support for notifications regarding unwanted trackers, spanning both Apple and Android devices with iOS 17.5 and Android 6.0+. Users will be alerted with an "Item Found Moving With You" notification if the system detects a Bluetooth device accompanying them over a period.