Apple Inc. (AAPL) isn't content with putting artificial intelligence into iPhones and Macs. According to a new report from Taiwan's Money UDN, the tech giant is planning a 2026 launch for AI-powered wearables that sound decidedly more ambitious than your standard product refresh.

Smart Glasses Without the Smart Display (At First)

Apple is reportedly developing at least two versions of AI smart glasses, which tells you something about how they're thinking about the market. The first model, codenamed N50 internally, is expected to arrive in 2026 and will require a connection to your iPhone. No built-in display on this one, which might disappoint some but also keeps the device lighter and more practical for everyday wear.

The second version gets more interesting. Apple is planning a model with an integrated display for release sometime between 2027 and 2028, according to the report. Both versions are expected to pack cameras, speakers, voice controls, next-generation chips, and potential health-tracking features. Think of it as Apple extending its Apple Intelligence platform across its hardware lineup in a way that actually makes sense for how people move through their day.

The timing here matters. Apple's Vision Pro headset hasn't exactly set the world on fire with demand, and competition in the AI wearables space is heating up. This feels like Apple shifting strategy toward something people might actually wear in public.

AirPods With Eyes

The camera-equipped AirPods represent an even more intriguing play. These are widely believed to be a premium version of Apple's next-generation AirPods Pro, and they're getting infrared cameras designed for AI-driven spatial recognition and visual interaction.

What does that mean in practice? Industry observers suggest we're looking at gesture-based controls and enhanced environmental awareness. Instead of tapping or pinching your earbuds, you might control them with hand gestures the camera can see. It's a meaningful departure from how AirPods currently work, and it positions these as a high-end offering rather than a replacement for existing models.

The Supply Chain Winners

Supply chain sources indicate that Foxconn Technology Group (HNHAF), also known as Hon Hai Precision Industry, is expected to handle primary assembly for Apple's first AI glasses. Taiwan Semiconductor Manufacturing Co. (TSM) will manufacture the key chips, which is hardly surprising given their relationship with Apple.

Largan Precision may supply high-end lenses, while Shin Zu Shing is expected to provide components for AirPods charging cases. When Apple makes a move like this, the ripple effects through the supply chain can be substantial.

Recent Performance Context

Apple reported fiscal fourth-quarter revenue of $102.47 billion, edging past analyst estimates of $102.17 billion. iPhone sales rose to $49.02 billion from $46.22 billion a year earlier, while Mac revenue increased to $8.73 billion from $7.74 billion. iPad revenue held steady at approximately $6.95 billion.

Interestingly, the Wearables, Home, and Accessories segment slipped slightly to $9.01 billion from $9.04 billion. These new AI wearables could be Apple's answer to reinvigorating that category.

Apple stock has gained 9.28% year-to-date and 9.56% over the past year. The stock is experiencing an upward price trend across short, medium, and long-term timeframes.

The 2026 timeline gives Apple room to get this right, but it also puts pressure on the company to deliver something genuinely differentiated in a market that's still figuring out what AI wearables should actually do. If these products can make AI feel useful rather than gimmicky, they could reshape how we think about wearable technology. If not, well, at least they tried something more wearable than a headset.