Apple Scraps Work on Augmented Reality Glasses Project

Apple has apparently abandoned its plans to develop augmented reality (AR) glasses, a project codenamed N107, according to a report from Bloomberg. This move comes as the company faces increasing competition in the AR/VR space, following the commercial failure of its Apple Vision Pro headset.

The AR Glasses Project

The N107 project aimed to create tech-equipped glasses that looked like any other pair but offered AR features, such as displaying information visible only to the person wearing the frames. Initially, the glasses were designed to connect to an iPhone, but this plan was scrapped due to the processing power needs of the glasses stressing out the handset and rapidly draining its battery. Apple later shifted gears to pairing the glasses to Mac devices, but the project continued to fall short of expectations in testing.

Apple’s Failure in the AR/VR Space

By ditching the AR glasses project, Apple is acknowledging that it has struggled to crack the VR/AR space. The Apple Vision Pro, introduced in 2023, is a technically impressive device but has limited use cases and a high price tag, retailing for $3,499. Apple’s projected sales figures for the Vision Pro have been revised downward, with an estimated 500,000 units sold, indicating a lack of momentum in the market.

Meta’s Success in AR Glasses

In contrast, Meta has achieved significant success with its AR glasses, which have sold over one million units in 2024. The company’s Smart Glasses, a collaboration with Ray-Ban, start at $300, making them more accessible to consumers. Meta’s Reality Labs division, which oversees the AR/VR division, reported a loss of $5 billion in the fourth quarter of 2024, despite generating $1.1 billion in sales.

Meta’s Ambitious Plans

Despite the challenges, Meta is committed to the wearables market. CEO Mark Zuckerberg has expressed ambitions to sell "billions of AI glasses" in the future. The company is reportedly working on new AR glasses, including Oakley-style glasses for athletes and a Ray-Ban follow-up called Hypernova, which will feature a heads-up display.

Apple’s Next Steps

Apple appears to be going back to the drawing board, with Vision Pro follow-up concepts in the works and an AirPods model equipped with cameras. However, this approach seems more like a reactive strategy than a forward-thinking vision, with the company throwing ideas against the wall to see what sticks.

Conclusion

The abandonment of the AR glasses project marks a significant setback for Apple in the AR/VR space. While Meta has achieved success with its AR glasses, the company’s ambitious plans for the wearables market are still uncertain. Apple’s next steps will be crucial in determining the company’s future in this space.