Apple Abandons Vision Pro, Shifts Focus to AI-Powered Smart Glasses

Apple is shifting its focus from its $3,499 Vision Pro headset to AI-powered smart glasses. The company is working on at least two versions, including one that links directly to an iPhone and another with a built-in display. Apple aims to make the glasses lighter, cheaper, and more approachable, with a focus on voice commands and an upgraded Siri. The goal is to make the glasses feel natural to use and easier on the wallet compared to Vision Pro's steep entry price.

Apple (AAPL) is redirecting its resources from the Vision Pro headset to accelerate the development of AI-powered smart glasses, aiming to challenge Meta Platforms (META) in the wearable technology market. The company has reassigned staff who were working on the Vision Pro to focus on creating smart glasses with a lower price tag and a more approachable design Apple's Next Big Play: Affordable AI Smart Glasses To Challenge Meta^[1].

According to Bloomberg, Apple is developing two versions of the smart glasses. The first version will connect to an iPhone and operate without its own display, potentially releasing as early as 2026. The second version will include a built-in display, similar to Meta's Ray-Ban Display, which launched last week Apple's Next Big Play: Affordable AI Smart Glasses To Challenge Meta^[1]. Apple still intends to refresh the Vision Pro with a faster processor and a modest redesign by the end of this year, suggesting the company is not abandoning its mixed-reality strategy entirely Apple's Next Big Play: Affordable AI Smart Glasses To Challenge Meta^[1].

The smart glasses are expected to rely heavily on voice commands and an upgraded Siri, set for release in March. The goal is to make the glasses feel natural to use and easier on the wallet compared to the Vision Pro's steep entry price of $3,499. Meta's Ray-Ban Display glasses, priced from $799, hit the market last week, signaling intensifying competition in wearable AI technology Apple's Next Big Play: Affordable AI Smart Glasses To Challenge Meta^[1].

Analysts predict the smart glasses market, currently under 3 million units sold annually, will grow significantly with the integration of AI features. By 2027, Apple envisions producing glasses with their own display, speakers, cameras, and health-tracking tools It's Not Just Meta That Thinks AI Can Jumpstart Smart Glasses. Apple's In Too.^[2]. Oppenheimer analysts suggest Apple's hardware ecosystem remains safe from new AI-enabled smart glasses for the next 2-3 years, given the current limitations of Meta's Ray-Ban Display It's Not Just Meta That Thinks AI Can Jumpstart Smart Glasses. Apple's In Too.^[2].

Despite the challenges in the virtual and mixed-reality headset market, Apple is positioning itself to capitalize on the potential of AI in wearable technology. The company's focus on affordability and accessibility could position Apple smart glasses as a viable competitor in the market Apple's Next Big Play: Affordable AI Smart Glasses To Challenge Meta^[1].