Apple is intensifying its efforts to enter the AI-enhanced gadget market, with plans to release smart glasses by the end of 2026, positioning them as a competitor to Meta Platforms’ Ray-Bans. This move is coupled with the shelving of plans for a smartwatch equipped with a built-in camera for environmental analysis.

Company engineers are accelerating the development of the smart glasses, internally known as project N401, and aim to start producing large quantities of prototypes with overseas suppliers by the end of this year. These glasses will feature cameras, microphones, and speakers, enabling them to analyze the external environment and respond to requests through the Siri voice assistant. They are also expected to handle tasks such as phone calls, music playback, live translations, and turn-by-turn navigation, similar to Meta’s current glasses and upcoming devices running Alphabet Inc.’s Android XR operating system.

Apple’s entry into AI-powered devices coincides with increasing competition in the field, notably with OpenAI’s partnership with former Apple chief design officer Jony Ive to develop AI hardware products. The acquisition of Ive’s startup, io, aims to produce a family of AI devices.

Originally dubbed N50, the smart glasses project represents a broader exploration of the category, although Apple’s plans remain subject to change, as demonstrated by previous project cancellations. The ultimate goal is to develop augmented reality spectacles that overlay digital content onto the real world, but this remains a long-term objective.

Bloomberg News reported earlier this month that Apple is developing a dedicated chip for the smart glasses, with mass production planned to begin as early as next year. One source familiar with the glasses indicated they will be similar to, but better made than, the Meta product. Meta's device has gained popularity among consumers, and the company plans to release a higher-end version later this year, featuring a display for notifications, pictures, and other simple visuals. Meta is also planning its first pair of true AR glasses in 2027.

Apple has explored other avenues for AI integration, including equipping smartwatches and AirPods with cameras to gather more environmental information. While efforts to release a camera-equipped Apple Watch and Apple Watch Ultra by 2027 have been discontinued, the company continues to develop AirPods with cameras.

The competition to perfect AI devices is intense, and Apple faces the challenge of enhancing its AI capabilities after lagging behind competitors in adding compelling AI features to its iPhones, iPads, and Macs. The company intends to enhance its AI capabilities, including opening its large language models to external developers, which could lead to a surge of AI-enhanced third-party software in the App Store.

Apple also plans to introduce its first foldable phone in late 2026, joining a market segment already populated by its rivals. Meanwhile, concerns persist among those working on Apple’s smart glasses that its AI shortcomings could negatively impact the new product, especially given the strengths of Meta’s Llama and Google’s Gemini platforms. Currently, Apple utilizes Google Lens and OpenAI for real-world analysis via the iPhone’s Visual Intelligence feature and will likely aim to incorporate its own technology into future hardware.

Much of the work on Apple’s glasses is being conducted by the Vision Products Group, which also developed the Vision Pro headset. The team is developing new versions of the Vision Pro, including a cheaper, lighter model and one that tethers to Macs for low-latency applications. Apple’s roadmap for wearable devices is continually evolving, as seen in its previous decision to scrap plans for AR glasses that required a Mac connection.