Apple's Augmented Reality Gamble Faces Challenges As Rivals Surge Ahead In AI and Design

Meta Platforms Inc. META and Alphabet Inc. GOOGL are leading the charge in the consumer augmented reality (AR) space, with Apple Inc. looming as a formidable contender.

Bloomberg columnist Mark Gurman in his latest weekly "Power On" newsletter on Sunday shared that Samsung Electronics Co. continues to make strides in AI innovation and smartphone design. However, Apple Inc AAPL remains steadfast in its strategy despite delays in launching its next AR products.

Apple's journey into AR began over a decade ago with ambitious ideas for AR-powered windshields for self-driving cars. Those concepts evolved into the development of AR headsets, culminating in the launch of the Vision Pro mixed-reality headset.

Although Vision Pro's $3,500 price tag and bulkiness hindered its success, Apple continues to refine its AR technology at a facility in Santa Clara, California. Despite technical challenges, the company aims to release AR glasses within three years, seeing them as a superior alternative to mixed-reality headsets, added Gurman in his post.

Also Read: Apple’s Slimmest iPhone Yet? The iPhone 17 Air Expected This Fall

While Apple's progress in AR has slowed, rivals like Meta and Google are making significant headway. Meta's prototype AR glasses, named Orion, could reach consumers by 2027, and Google's collaboration with Samsung has produced next-generation devices powered by its Android XR operating system. Samsung has also unveiled its "Moohan" mixed-reality headset, which is expected to be more affordable than Apple's Vision Pro.

In the smartphone arena, Samsung is ahead of Apple with its new Galaxy S25 line, featuring cutting-edge AI capabilities powered by Google's Gemini platform. Additionally, Samsung's S25 Edge, an ultrathin smartphone, is set to debut months ahead of Apple's rumored iPhone 17 Air, showcasing its competitive edge in hardware design.

Meanwhile, Apple has made internal adjustments to bolster its AI and Siri efforts. Vice President Kim Vorrath, known for successfully managing key software projects like the original iPhone and visionOS, has been tasked with overseeing improvements in Siri and Apple's AI platform.

Investors are closely watching Apple's upcoming earnings report on Jan. 30 for insights into its holiday sales performance and the impact of its AI initiatives.

As Apple refines its AR and AI strategies, it faces mounting competition from Meta, Google, and Samsung. The tech giant's track record of entering established markets with superior products will be tested in the years to come.

Read Next

Could Apple Set Revolutionize Tablet Market With 18.8-Inch Foldable iPad?

Image: Shutterstock