TLDRs:
- Apple halted Vision Pro revamp to shift focus toward AI-driven smart glasses, Bloomberg reports.
- Two glasses models in development: one iPhone-linked, one with its own display.
- Vision Pro headset sales slowed due to high pricing and lack of mainstream content.
- Apple stock rose 0.66%, up 11% in the past month on product diversification hopes.
Apple Inc. (NASDAQ: AAPL) stock edged slightly higher on Thursday as investors reacted positively to reports that the company has halted its Vision Pro headset revamp in favor of accelerating work on smart glasses.
Sources familiar with the matter revealed that Apple is redirecting resources from a planned cheaper Vision Pro model, internally known as the N100, toward wearable glasses that could rival Meta’s Ray-Ban Displays.
The decision underscores a notable shift in Apple’s augmented reality (AR) and artificial intelligence (AI) strategy, signaling that the company sees more mass-market potential in smart glasses than in bulky, high-priced headsets.
Two Models in Development
According to sources, Apple is developing at least two smart glasses variants. The first, codenamed N50, is designed to pair with the iPhone and will not feature its own display. Instead, it will integrate features like AI-powered voice interaction, speakers, and possibly lightweight sensors. This entry-level version may be unveiled as early as 2026, with a broader release targeted for 2027.
The second model, featuring a built-in display, is planned for 2028, though internal discussions suggest Apple may accelerate its timeline to compete directly with Meta and Google’s growing AR offerings.
The display-equipped version is seen as Apple’s true competitor to Meta’s next-gen smart eyewear.
Vision Pro Faces Market Headwinds
Apple launched the $3,499 Vision Pro in February 2024 amid enormous fanfare, branding it as the future of spatial computing. However, despite initial enthusiasm, sales momentum slowed quickly.
A limited ecosystem of apps and high competition from cheaper headsets, such as Meta’s Quest line, have dampened adoption.
The planned N100 headset was expected to be a lighter and more affordable alternative. Yet, with shifting consumer trends and rapid advancements in AI, Apple has chosen to pause that project and instead lean into wearables that may see broader mainstream adoption.
Stock Reaction and Market Outlook
Notably, Apple stock has risen nearly 12% over the past month, driven by optimism surrounding new product lines and resilience in Apple’s services segment.
Still, analysts warn of challenges ahead. iPhone 17 sales have shown signs of losing momentum, raising concerns about Apple’s reliance on its flagship product. The smart glasses pivot may represent the company’s bid to diversify its hardware ecosystem and strengthen its position in AI-powered consumer tech.
“Apple has a history of redefining product categories,” said Dan Ives of Wedbush Securities. “If it can deliver a truly seamless AR glasses experience, this could become a multi-billion-dollar market opportunity by the end of the decade.”
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