According to a recent report, Apple is developing a chip for its upcoming smart glasses, potentially launching within the next two years. The company is reportedly working on two types of smart glasses: one with augmented reality (AR) capabilities and another similar to the Ray-Ban Meta AI glasses, equipped with a camera and microphones.

Apple's silicon design group is creating a dedicated chip for these smart glasses, drawing inspiration from the System in Package (SiP) used in the Apple Watch. This chip is being designed for power efficiency by stripping away unnecessary components while still offering more power efficiency than other Apple Silicon chips. The glasses are codenamed N401.

Production of the chip is expected to be handled by Apple supplier TSMC, with an estimated start date in 2027. However, Apple may face challenges competing with Meta, which already has a head start in the smart glasses market. Meta plans to launch advanced wearables, including true AR glasses, by 2027. The Ray-Ban Meta AI glasses offer features like video recording, image capture, and access to Meta AI, including text translation and reminder settings. Apple has yet to announce dedicated AI features for wearables, possibly relying on a linked smartphone for AI processing to improve battery life.

Recent reports also suggest Meta is considering adding facial recognition to its smart glasses, which could raise privacy concerns. Meta is exploring watches and earbuds. A recent report suggests that Meta is looking to equip its smart glasses with a new capability. The company is said to have recently discussed adding facial recognition using the camera on its smart glasses to identify users by name. This could pose a risk to people around those wearing a pair of Meta's smart glasses, as they would have no way to opt out of the service.