Apple has officially terminated its project to develop augmented reality (AR) glasses, codenamed N107, after struggling to achieve a viable product that could compete with Meta's successful Ray-Ban smart glasses. This decision comes on the heels of disappointing sales figures for the Apple Vision Pro headset, which has a hefty price tag but lacks compelling use cases. Initially, Apple intended for the AR glasses to connect to iPhones, but battery and processing challenges led to a pivot towards Mac compatibility, which also failed to produce satisfactory results. In contrast, Meta's AR glasses have seen substantial sales and the company plans to continue expanding its wearables lineup while Apple shifts its focus to other concepts, suggesting uncertainty in its future AR ambitions.

Key Points:

• Apple has canceled its AR glasses project, codenamed N107.
• Initial plans included glasses that connect to iPhones, but battery and performance issues arose.
• Apple Vision Pro headset has seen low sales, with projections revised down to around 500,000 units.
• Meta's Ray-Ban smart glasses sold over one million units, priced at a more accessible starting point of $300.
• Meta continues to invest in wearables and AR technology, with plans for future products.
• Apple's focus may shift to other areas, including follow-up concepts for the Vision Pro and camera-equipped AirPods.
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