Apple AirPods With Cameras? Rumors Persist About Next-Gen Features

Apple Inc. AAPL reportedly continues to explore AirPods with tiny infrared cameras.

What Happened: In his latest "Power On" newsletter, Bloomberg columnist Mark Gurman fleetingly mentioned camera-equipped AirPods while reporting about Cupertino's wearables development.

While he did not dwell on the use cases of the camera, it clearly indicated that the development is still on the cards. 

According to previous reports, these tiny infrared cameras are expected to deliver an enhanced spatial audio experience, especially in combination with Vision Pro headset.

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Reports also indicated that the cameras would allow users to leverage sound sources based on head movements while watching videos with the headset.

Moreover, they could enable “in-air gesture control,” allowing users to interact with devices through hand movements.

Mass production of these AirPods will reportedly begin by 2026 with a potential release in 2026 or 2027. Apple has yet to confirm any such plan.

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Why It Matters: The AirPods lineup is a critical component of Apple's wearables, home, and accessories category.

It generated $9.04 billion in revenue during the fiscal fourth quarter of 2024 which represents a slight decline from $9.32 billion in the same period in 2023.

Apple continues to maintain its leadership in the true wireless stereo (TWS) market, holding a 17% market share as of the third quarter of 2024. However, this represents a sharp decline from 48.1% in 2019, according to Statista.

Price Action: Apple stock declined 0.39% on Friday, closing at $222.78, and fell an additional 0.27% in after-hours trading, according to Benzinga Pro data.

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Disclaimer: This content was partially produced with the help of Benzinga Neuro and was reviewed and published by Benzinga editors.