Apple’s $3,500 Vision Pro faces smart glasses threat: can premium win the AI race?

Apple’s delayed AI features and lack of a multi-modal model have allowed Google and Meta to capture developer interest with affordable smart glasses. As Apple bets on its high-end Vision Pro headset, the question remains whether premium pricing can overcome the growing competition in AI-powered wearable tech.

Sources:
Reuters
Updated 3h ago
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Sources: Reuters
Apple’s $3,500 Vision Pro headset is confronting significant challenges as competitors like Google and Meta push AI-powered smart glasses at lower price points.

Despite Apple’s strong hardware reputation, the company has delayed many promised AI features until next year, while rivals aggressively roll out new AI capabilities.

“Apple is facing an unprecedented set of technical and regulatory challenges,” industry observers note, highlighting the pressure on the tech giant.

Apple’s shares have fallen more than 40% since the start of the year, underperforming Google and Microsoft, which have benefited from AI-driven gains.

Analysts point out that Apple currently lacks a 'multi-modal' AI model—one that simultaneously understands imagery, audio, and language—critical for powering smart glasses, a category where Meta has seen runaway success.

While Apple’s Vision Pro targets a premium market segment, Google and Meta’s smart glasses offer a more affordable way to showcase AI software prowess, challenging Apple’s hardware dominance.

The unfolding competition raises questions about whether Apple’s premium approach can win the AI race in wearable technology.

“Google and Meta have seized on the smart glasses as a cheaper way to deploy their AI software prowess against Apple,” analysts say, underscoring the strategic battle ahead.

As Apple prepares for its annual software developer conference, the tech world watches closely to see if it can catch up in AI innovation and maintain its hardware leadership.
Sources: Reuters
Apple’s $3,500 Vision Pro headset faces stiff competition from cheaper AI-powered smart glasses by Google and Meta, as Apple delays key AI features and lacks a multi-modal model. The tech giant’s shares have dropped over 40% this year amid growing pressure in the AI race.
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Apple is facing an unprecedented set of technical and regulatory challenges as some of its key executives are set to take the stage on Monday at the company's annual software developer conference.
Market Analyst
Reuters
Key Facts
  • Apple promised new AI features at last year's developer conference but has delayed their rollout until next year, missing the current AI wave that competitors are capitalizing on.Reuters
  • Google and Microsoft have launched new AI features that are attracting developers, putting Apple at a competitive disadvantage.Reuters
  • Apple’s shares have dropped over 40% since the start of the year, underperforming both Google and Microsoft, which have benefited from AI-driven gains.Reuters
  • Apple lacks a multi-modal AI model capable of simultaneously understanding imagery, audio, and language, a key technology for powering smart glasses.Reuters
  • Meta and Google have focused on smart glasses as a cheaper AI hardware alternative, gaining significant market traction against Apple’s premium $3,500 Vision Pro headset.Reuters
  • Apple’s $3,500 Vision Pro headset faces stiff competition from cheaper smart glasses that are rapidly gaining popularity in the AI hardware market.Reuters
Key Stats at a Glance
Apple's share price decline since start of year
-40%
Reuters
Price of Apple's Vision Pro headset
$3,500
Reuters
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