Apple (AAPL, Financial) is developing custom processors for smart glasses and AI servers, building on its chip pedigree to challenge rivals like Meta's Ray-Ban sunglasses.
According to Bloomberg, Apple's next-generation wearable chip—a derivative of the Apple Watch silicon tailored for power efficiency and multi-camera control—could enter mass production by late 2026 or 2027 via TSMC.
The company is also reportedly working on new Mac chips, provisionally dubbed the M6 and M7, alongside an advanced AI server chip codenamed Sotra, potentially co-developed with Broadcom. Apple shares rose 1.8% midday as investors digested the expansion of its in-house silicon roadmap.
This push builds on the Vision Pro headset launch and signals Apple's intent to own the full hardware stack across AR wearables, personal computers and data-center infrastructure.
By vertically integrating these specialized processors, Apple aims to optimize performance-per-watt in glasses form factors and secure greater control over AI model training and inference in its server farms. Bloomberg's sources emphasize that customizing the Watch-based design for wearables could give Apple a head start against Meta's early AR play.
Why it matters: Proprietary chips for glasses and AI servers could accelerate Apple's entry into augmented reality and on-premise AI, strengthening its ecosystem and opening new revenue streams beyond the iPhone and Mac.
Investors will look for Apple to confirm chip details at WWDC in June and monitor supply-chain moves—especially TSMC partnerships—when the company reports fiscal Q3 results in late July.
