Good news for Meta? Apple's AR glasses project has failed, reportedly facing technical challenges and poor performance improvements

After self-driving cars, Apple may have abandoned another internet buzz project that occasionally trends. Meta, which launched a co-branded smart glasses with Ray-Ban, might be pleased.

On January 31st, Eastern Time, Bloomberg cited sources saying that this week, Apple canceled an augmented reality (AR) glasses project. The project, codenamed N107, aimed to develop high-end AR glasses that could be paired with Apple devices. The product developed in the project looked similar to regular glasses, with the distinction that it had a built-in display and needed to connect to a Mac computer.

Insiders stated that Apple initially hoped the AR glasses could pair with the iPhone but encountered issues with the phone's processing power, which also affected the iPhone's battery life. Therefore, Apple shifted to a connection method that required a Mac computer, as Macs have faster processors and larger batteries. However, during evaluations by Apple's executives, the final product of the N107 project performed poorly, and the functional requirements kept changing. Even after redesigning the product, the project was ultimately scrapped.

The report mentioned that employees in Apple's Visual Products Group (VPG) believed that the team lacked focus and clear direction, and the cancellation of the N107 project dampened morale.

The report suggested that the cancellation of the AR glasses project signifies that Apple has encountered new setbacks in developing head-mounted devices that appeal to mainstream consumers. Apple hopes to produce products that ordinary people can accept, but it has proven challenging to find suitable technology and cost.

In June last year, reports indicated that before the release of Vision Pro in 2023, Apple planned to launch AR glasses by the end of 2025 at the earliest. Although there were reports last year stating that Apple planned to launch the product in 2027, some insiders at Apple did not believe the glasses would be ready for market in a few years.

The Risk of Stagnation: Vision Pro's Sales Below Expectations, Meta Develops AR-Enhanced Smart Glasses

The more serious consequence of the failure of the AR glasses project may be that even if Apple launches the so-called best headset, Vision Pro, it will lose market share in head-mounted devices. This is a risk of stagnation.

Last year's reports indicated that the Vision Pro, priced at around $3,500, was not only expensive but also cumbersome to wear, failing to attract consumers.

Before the release of Vision Pro in 2023, the industry had optimistic expectations that annual sales of Vision Pro would reach 900,000 to 1 million units. However, last month, reports indicated that fewer than 500,000 units of Vision Pro had been sold since its launch in February last year.

In October last year, rumors surfaced that Apple would suspend production of Vision Pro, shifting its strategic focus to a more affordable version of the headset expected to launch as early as this year. It was also reported that since production began in 2023, Vision Pro had produced between 500,000 to 600,000 units.

Last month, Yicai cited comments from market researchers stating that Vision Pro's market sales last year were below expectations, primarily due to high prices limiting the consumer base; insufficient content ecosystem, lacking attractive app content, and practical application scenarios that meet essential needs Market and technology adaptation issues.

Apple's first headset has not made a splash, while Meta holds the hot-selling co-branded smart glasses Meta Ray-Ban and is ambitiously developing new products. Meta is working on a new version of smart glasses that can add AR features, overlaying images and data onto the real-world view, with a related product expected to launch in 2027.

However, Apple has no intention of giving up the headset market. Media reports indicate that Apple is developing the next generation of Vision Pro, including an updated version of the original model, and is also working on other conceptual products, such as AirPods with cameras. Apple's executives still hope to ultimately create a standalone AR glasses set that does not require pairing with other devices