Apple (AAPL, Financial) is significantly enhancing its chip development capabilities, focusing on areas such as smart glasses, AI servers, next-gen Macs, and wearable devices to gain an edge over competitors like Meta Platforms (META). According to insiders, Apple is currently working on a specialized chip for smart glasses, leveraging the low-power architecture of the Apple Watch. This chip is tailored for multi-camera control and battery efficiency, aiming for mass production by 2026 or 2027. If successful, Apple's smart glasses might launch within two years, competing directly with Meta's Ray-Ban smart glasses.
The internal code name for this project is "N401," evolving from the previous "N50" plan. While Apple initially focused on augmented reality (AR), they are now exploring non-AR versions with features like photography, voice assistance, and environmental scanning, similar to Meta's non-AR glasses. Additionally, Apple is working on several AI-enabled wearable devices, including AirPods and Apple Watch, equipped with chips codenamed "Glennie" and "Nevis," expected by 2027.
Apple is also developing its first AI server chip, codenamed "Baltra," aiming for completion in 2027 to support its "Apple Intelligence" platform, in collaboration with Broadcom (AVGO). This chip will address user requests remotely, replacing current reliance on high-end Mac chips like the M2 Ultra. Apple is also working on new Mac chips, including the M6 (Komodo) and M7 (Borneo) processors. Furthermore, Apple is developing modem chips (C2 and C3) for future iPhone models and exploring sensors for blood sugar monitoring in the Apple Watch. CEO Tim Cook is prioritizing the smart glasses market, aiming to outpace Meta, which plans to release advanced glasses this year and true AR glasses by 2027.
