Report: Apple Shelves Mac-Connected AR Glasses Project

Apple has reportedly shut down plans to develop augmented reality glasses connected to its computers.

The project, cancelled this week, would have created a product that resembled normal glasses but which included built-in displays and required a connection to a Mac, Bloomberg reported Friday (Jan. 31), citing sources familiar with the matter.

The report noted that the project had been viewed as a way to bounce back following the lukewarm debut of the Apple Vision Pro, a $3,499 model that proved too cumbersome and costly for widespread adoption among users.

Now, per the Bloomberg report, Apple risks losing ground to Meta, which already sells its Ray-Ban smart glasses and is working on a version that includes augmented reality.

Sources told Bloomberg that the decision to end the project — dubbed N107 — came after an attempt to reconfigure its design. At first, Apple had wanted the glasses to pair with the iPhone, but hit a roadblock over how much processing power the smartphone could offer.

Instead, Apple looked to its computers, with their faster processor and larger batteries. However, this version performed poorly in reviews with executives. The project was finally cancelled this week.

It’s not the first time Apple has walked away from a big technological effort. Last year, the company finally put the brakes on a years-long effort to create a self-driving vehicle.

In November — around the time word of the smart glasses project first surfaced — Apple warned its investors that its newest product lines might not measure up to the success of its iPhones.

“New products, services and technologies may replace or supersede existing offerings and may produce lower revenues and lower profit margins, which can materially adversely impact the company’s business, results of operations and financial condition,” Apple wrote in a Securities and Exchange Commission (SEC) filing.

In other augmented reality news, PYMNTS wrote last month about the implications of extended reality (XR) — an umbrella term encompassing virtual reality (VR), augmented reality (AR) and mixed reality (MR) — for the payments sector.

“On a fundamental level, the XR landscape presents a once-in-a-generation opportunity for payments innovation,” that report said, as XR applications in fields like gaming, eCommerce, healthcare and education will demand smoother payment solutions in line with the promise of these technologies.

“As XR grows, payments are likely to no longer be a mere utility but a critical enabler of its success,” that report added. “By addressing the unique needs of immersive environments, payment providers can enable new business models, build trust with users and redefine the boundaries of commerce in virtual and augmented realities.”