Apple Targets 2026 Launch For AI Smart Glasses, Camera-Equipped AirPods, With Foxconn, TSMC Set To Play Key Roles: Report

Apple Inc. (NASDAQ:AAPL) is reportedly preparing to expand its artificial intelligence strategy beyond iPhones and Macs, with AI-powered wearable devices expected to debut in 2026.

Apple Expands AI Push Into Wearables

Apple is planning to launch two new AI-driven wearable products — smart glasses and AI-powered AirPods — as early as 2026, according to a report from Taiwan's Money UDN.

The move signals Apple's intent to extend its Apple Intelligence platform across its broader hardware lineup.

Analysts expect the upcoming wearables to strengthen Apple's AI ecosystem while benefiting major suppliers, including Foxconn Technology Group, also known as Hon Hai Precision Industry Co., Ltd (OTC:HNHAF) and Taiwan Semiconductor Manufacturing Co. (NYSE:TSM).

See Also: Apple Plans 8 New iPhones: Report Says Folding Model, 20th Anniversary Edition In The Works

Two Versions Of AI Smart Glasses In Development

According to the report, Apple is developing at least two versions of AI smart glasses.

The first model, internally codenamed N50, is expected to rely on an iPhone connection and will not feature a built-in display. That version could arrive in 2026.

A more advanced model with an integrated display is reportedly planned for a later release window, possibly between 2027 and 2028.

The glasses are expected to include cameras, speakers, voice controls, a new-generation chip and potential health-tracking features, the report added.

Apple's accelerated push into smart glasses follows muted demand for its Vision Pro headset and growing competition in the AI wearables space.

Camera-Equipped AirPods Aim To Unlock New AI Features

Apple is also working on AI-powered AirPods, widely believed to be a premium version of its next-generation AirPods Pro.

The earbuds are expected to feature an infrared camera designed to support AI-driven functions such as spatial recognition and visual interaction.

Industry observers said the addition could enable gesture-based controls and enhanced environmental awareness, marking a shift away from current touch and pinch inputs.

The product is not expected to replace existing AirPods models but rather sit at the high end of Apple's audio lineup, the report noted.

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Foxconn, TSMC And Suppliers Stand To Benefit

Supply chain sources indicated that Foxconn is expected to serve as the primary assembler for Apple's first AI glasses, while TSMC will manufacture the key chips.

Largan Precision may supply high-end lenses and Shin Zu Shing is expected to provide components for AirPods charging cases.

Apple Tops Q4 Revenue Estimates As iPhone And Mac Sales Rise 

Apple reported fiscal fourth-quarter revenue of $102.47 billion, edging past analyst estimates of $102.17 billion.

iPhone sales rose to $49.02 billion from $46.22 billion a year earlier. Mac revenue increased to $8.73 billion from $7.74 billion. iPad revenue held steady at approximately $6.95 billion. Wearables, Home, and Accessories revenue slipped slightly to $9.01 billion from $9.04 billion.

Price Action: Apple stock has gained 9.28% year-to-date and 9.56% in the past year, according to Benzinga Pro.

Benzinga Edge Stock Rankings indicate that Apple is experiencing an upward price trend in the short, medium and long term, with additional performance metrics available on the platform.

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Disclaimer: This content was partially produced with the help of Benzinga Neuro and was reviewed and published by Benzinga editors.

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