Following the self-driving Autos, Apple may have abandoned another occasionally trending online popular project. Meta, which launched its collaboration smart glasses with Ray-Ban, might be pleased.

On January 31, Friday, Eastern Time, Bloomberg cited insiders saying that this week, Apple canceled an augmented reality (AR) glasses project. Codenamed N107, this project aimed to develop high-end AR glasses that could be paired with Apple devices. The appearance of the product under development looked similar to ordinary glasses, except that it had a built-in display and needed to connect to a Mac computer.

According to insiders, Apple initially hoped that the AR glasses could pair with the iPhone, but encountered issues with the phone's insufficient processing power, which also affected the iPhone's Battery life. Therefore, Apple shifted towards a connection method requiring a Mac computer, as the Mac's configured processor speed is faster and the Battery is larger. However, during evaluations by Apple's executives, the performance of the N107 project product was poor, functionality requirements kept changing, and even after redesigning the product, the project was ultimately cut.

Reports mention that employees in Apple's Visual Product Group (VPG) believe that the team lacks focus and clear direction, and the cancellation of the N107 project demoralized the staff.

The report suggests that the cancellation of the aforementioned AR glasses project signifies that Apple has faced new setbacks in developing head-mounted devices that attract mass Consumers. Apple aims to produce products that the general LBX Pharmacy Chain Joint Stock can accept; however, finding suitable technology and a cost-effective solution has proven to be quite challenging.

In June last year, it was reported that before the Vision Pro launch in 2023, Apple planned to launch AR glasses as early as the end of 2025. Although there were reports last year mentioning Apple's plan to launch the product in 2027, some insiders at Apple do not believe that the glasses will be ready for market in the next few years.

The risk of not progressing is regression: Last year, Vision Pro sales were below expectations, and Meta is enhancing AR features in smart glasses.

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

Reports from last year indicated that the Vision Pro, priced at about $3,500, is not only expensive but also cumbersome to wear, failing to attract Consumers.

Before the Vision Pro's release in 2023, the Industry had optimistic expectations that annual sales would reach between 900,000 to 1 million units. However, last month it was reported that less than 500,000 units had been sold since the Vision Pro was launched in February of last year.

In October of last year, rumors circulated that Apple would suspend production of the Vision Pro, having shifted its Global Strategy to focus on a more affordable headset expected to launch as early as this year. It was also mentioned that since production began in 2023, 500,000 to 600,000 units of the Vision Pro had been produced.

A report from Yicai last month cited comments from market researchers stating that the Vision Pro's market sales last year fell short of expectations. The main reasons included: high prices limiting the Consumer base; insufficient content ecosystem with a lack of attractive app content and practical application scenarios to meet essential needs; and mismatches between market demands and technology.

Apple's first shot with its headset hasn't hit the mark, while Meta, armed with the best-selling co-branded smart glasses, Meta Ray-Ban, is ambitiously developing new products. Meta is working to create a new version of smart glasses that can add AR features, overlaying images and data onto views of the real world, with a related product expected to be launched in 2027.

However, Apple has no plans to relinquish its share of the headset market. Media reports indicate that Apple is developing the next generation of the Vision Pro, including an updated version of the original model, and is also working on other Concept products, such as AirPods with cameras. Apple's executives still hope to eventually create a standalone AR glasses system that doesn't require pairing with other devices.