Apple is aiming to release smart glasses at the end of next year as part of a push into artificial intelligence (AI)-enhanced gadgets, but it has shelved plans for a smartwatch that can analyse its surroundings with a built-in camera.

Company engineers are ramping up work on the glasses – a rival to Meta Platforms’ popular Ray-Bans – in a bid to meet the year-end 2026 target, according to people with knowledge of the matter.

Apple would start producing large quantities of prototypes at the end of this year with overseas suppliers, said the people, who asked not to be identified because the products have not been announced.

The iPhone maker is looking to join the emerging trend of AI-powered devices – an area where it faces fresh competition.

OpenAI said Wednesday that it was teaming up with former Apple chief design officer Jony Ive to introduce hardware products starting next year. The AI pioneer is acquiring Ive’s secretive io start-up, with the goal of releasing a family of AI devices.

Apple’s glasses would have cameras, microphones and speakers, allowing them to analyse the external world and take requests via the Siri voice assistant. They could also handle tasks such as phone calls, music playback, live translations and turn-by-turn directions. The approach would be similar to that of Meta’s current glasses and coming devices running Alphabet’s Android XR operating system.