Apple Shifts Focus from Tethered AR Glasses to All-in-One and AI Glasses

Introduction

According to Bloomberg, Apple has canceled its project for Mac-tethered AR glasses, which required connection to a Mac for computing and power. However, the company remains actively engaged in the development of all-in-one AR glasses. This article will delve into the reasons behind Apple's decision and explore which manufacturers may benefit from this shift.

Why Did Apple Cancel the Tethered AR Glasses?

AR glasses can be categorized into two types based on their computational capabilities: all-in-one AR glasses and tethered AR glasses.

• All-in-One AR Glasses: These integrate the display system, computing unit, sensors, battery, and other core components within the frame, allowing them to operate independently without the need for external devices such as computers or smartphones. Examples include Rokid Glasses and INMO Air 3.

• Rokid Glasses, for instance, feature an integrated design weighing 49g and are priced at 2,499 yuan. Equipped with the Qualcomm Snapdragon AR1 chip, 2GB+32GB storage, Micro LED + glass diffractive waveguide, dual mono green light engines, high-fidelity speakers, and a 12-megapixel camera, they offer a wide range of functions such as object recognition, photo answering, multilingual translation, real-time navigation, and AI transcription.

• Tethered AR Glasses: These separate the display and computing units, requiring connection to external devices like smartphones, tablets, or gaming consoles via cables. They lack onboard computing power and are more suitable for environments with a stable power source and high-performance devices. Examples include Leio Air 3 and VITURE Pro.

• Leio Air 3, with a weight of 76g, features a peacock optical engine jointly developed by Leio and TCL, supporting 145% sRGB color gamut, 650nits brightness, and 200,000:1 contrast ratio. It also includes a dual-unit audio structure, compatibility with 11 mainstream head types, and support for over 1,000 devices, making it ideal for users who need portable screens for gaming, watching movies, or business travel.

Apple initially planned to leverage the weight advantage of tethered AR glasses combined with the performance of the iPhone to create a comprehensive and comfortable AR glasses product. However, testing revealed excessive power consumption and performance limitations when connected to the iPhone. Subsequent attempts to connect to the Mac were rejected by Apple's executives, leading to the cancellation of the tethered AR glasses project.

Beneficiaries of Apple's Decision

• Chinese AR Glasses Manufacturers: According to data from洛图科技 (RUNTO), in 2024, the top five Chinese AR glasses manufacturers in the online market were Leio Innovation, XREAL, Star紀Meizu, INMO, and VITURE, with a combined market share (CR5) of 94.6%. In terms of product categories, tethered products accounted for 80.6% of the market share, while all-in-one products held 19.4%.

• The cancellation of Apple's tethered AR glasses project is a significant advantage for these manufacturers, as they no longer need to worry about Apple threatening their market position. This provides them with more time and space to develop and improve their own products.

• Meta: Although Meta currently has a 0% market share in the AR glasses market (Note: Meta's Meta Orion AR glasses launched last year were for demonstration only and not for sale), the company is eager to enter this market. Reports suggest that Meta plans to release its first AR glasses with waveguide screens this year, codenamed Hypernova, which can display notifications, output AI text, and serve as a photo viewfinder. With Apple out of the picture for now, Meta has ample opportunity to dominate the AR glasses market this year.

Apple's Continued Exploration of AR and AI Glasses

Despite the setback with tethered AR glasses, Apple's exploration of AR technology has not stopped. The company is continuing to develop all-in-one AR glasses and is also considering entering the AI glasses market.

• AI Glasses Market Prospects: According to market research, the global AI glasses market was valued at approximately $116 million in 2023 and is expected to grow at a CAGR of 16.6% over the next six years, reaching $1.677 billion by 2030. The main drivers of this growth include the increasing demand for AR/VR technology, technological advancements, and consumer preferences for smart devices.

• Meta's Success with AI Glasses: Meta's Ray-Ban Meta AI glasses sold over 1 million units in 2024, and the company plans to release the third-generation product this year, aiming for sales of over 5 million units in 2025. This success has likely caught Apple's attention, prompting the company to consider launching its own AI glasses.

Given the lower development difficulty and higher market acceptance of AI glasses compared to AR glasses, it is possible that Apple's AI glasses will be released to consumers before the all-in-one AR glasses.

Conclusion

Apple's decision to cancel its tethered AR glasses project and focus on all-in-one and AI glasses has created opportunities for other manufacturers in the AR and AI glasses markets. Chinese manufacturers such as Leio Innovation, XREAL, and INMO, as well as Meta, stand to benefit from this shift. As Apple continues to develop its own AR and AI glasses, the competition in these markets will intensify, driving innovation and growth in the industry.