Apple is poised to make a significant leap into the head-mounted device market, with an analyst predicting its “Ray Ban-like” smartglasses will drive industry sales past 10 million units by 2027. After a relatively quiet 2026 for new product releases in this category, Apple Inc. (AAPL) is anticipated to accelerate its launches of head-mounted devices in the subsequent year.
Apple’s Strategic Focus: The Next Major Trend
Ming-Chi Kuo, a respected analyst from Taiwan-based TFI Securities, stated in a recent report that Apple views head-mounted devices as the forthcoming dominant trend in consumer electronics. The renowned analyst indicated that Apple currently has an ambitious pipeline, with seven products under development within this category. This includes four distinct SmartGlass variants and three iterations of its Vision series. Of these, five products already have confirmed timelines for their release or production.
The “Ray-Ban-Like” Smartglasses: Driving Volume
Kuo specifically forecasts that the “Ray Ban-like” smartglasses will be the first of Apple’s new head-mounted devices to achieve substantial sales volume. He projects that shipments for these particular smartglasses could reach three to four million units or more in 2027. This anticipated success from Apple is expected to significantly boost the overall industry, pushing total head-mounted device sales beyond the 10 million unit mark in the same year. To put this in perspective, Apple’s flagship iPhone devices were estimated to have sold over 230 million units in the fiscal year 2024, highlighting the nascent but growing nature of the head-mounted device market.
Apple’s Strengths and Challenges in the AI Era
When examining Apple’s competitive landscape, Kuo pinpointed the company’s robust hardware development capabilities and its seamless ecosystem integration as its primary competitive advantages. However, he also noted significant challenges, particularly concerning artificial intelligence (AI)-powered operating systems and software.
Apple’s perceived lack of a compelling new product lineup in the immediate future, coupled with its somewhat delayed foray into advanced AI, has arguably placed the company on the defensive. Reflecting these perceived setbacks, along with the broader uncertain macroeconomic and geopolitical climate, Apple’s stock has declined by nearly 20% this year. Retail investor sentiment towards the stock on Stocktwits was notably ‘bearish’ (rated 40 out of 100) by late Sunday, though message volume remained ‘normal’. The majority of this negative sentiment among retail investors is largely attributed to factors external to the company itself.
Delving deeper into the “Ray-Ban-like” smartglasses, Kuo envisions them offering multiple frame and temple material options, alongside user interfaces primarily controlled by voice and gesture recognition. Notably, these specific smartglasses are not expected to feature display functionality. Instead, the analyst suggests their core features will encompass audio playback, camera capabilities, video recording, and AI environmental sensing. Kuo believes that such devices could potentially replace functions currently performed by True Wireless Stereo (TWS) earphones and smartphone cameras. He sees this particular product category as representing the smart glasses segment with the highest near-term growth potential. The analyst also anticipates future developments in this category, including XR Glasses and various Display accessories.
Vision Series Roadmap: A Longer Horizon
Regarding the more advanced Vision Series, Kuo expects that the Vision Pro M5 version will commence mass production in the third quarter of 2025. The Vision Air is projected to enter mass production in the third quarter of 2027, with the second-generation Vision Pro slated to follow in the second half of 2028.
Apple’s strategic pivot towards head-mounted devices, particularly its “Ray Ban-like” smartglasses, signals the company’s strong belief in this category as the next wave of consumer electronics. While facing challenges in AI software and a current stock dip, Apple’s core strengths in hardware and ecosystem integration position it to potentially redefine how we interact with technology. The success of these anticipated launches, particularly the more accessible smartglasses, will be crucial in determining Apple’s trajectory in this evolving market.
