How Apple could dominate AI-powered smart glasses in the next three years

The news: Apple is building custom hardware for smart glasses, Macs, and AI servers, using its silicon edge to power future devices, per Bloomberg.

The low-power glasses processor, based on Watch architecture, is designed to run all day, and production is expected to begin by late 2026 and launch in 2027.

Why it’s worth watching: Apple is still searching for its next big product category. Apple Vision Pro’s failure to gain traction—and Ray-Ban Meta Smart Glasses’ continued success and adoption—make Apple-branded smart glasses a no-brainer.

With Apple Watch and AirPods markets somewhat saturated, smart glasses fit perfectly as a product category within Apple’s niche of fashion and technology.

The two-year runway to market might coincide with Apple’s AI expansion, enabling its smart glasses to succeed as vessels for AI where earlier wearables have failed.

Apple’s competitive advantage: Apple’s bespoke hardware and retail stores will give it an advantage over Meta, which relies on Qualcomm and EssilorLuxottica for Ray-Ban’s processors and distribution.

A large developer ecosystem and years of dabbling in augmented reality (AR) and mixed reality (MR) on iPhones and iPads provide fertile ground for an expansive app ecosystem for future wearables.