Apple's Smart Glasses Could Launch in 2027. Here's Why Apple Could Succeed Where Others Have Failed.

Recent reporting from Bloomberg says that Apple (NASDAQ: AAPL) is working on a smart glasses device that could debut as soon as later this year and go on sale as soon as 2027.

These aren't the long-awaited augmented reality glasses that Apple investors like me have been anticipating, but they're likely the first step in that direction.

Meta (NASDAQ: META) has had smart glasses for years, complete with a display that Apple's glasses reportedly won't have. And while it may not be as technically capable, I think there's a good case for Apple's smart glasses to be a big success. Here's why.

Image source: Apple.

What Apple's been cooking up

Bloomberg's Mark Gurman recently said Apple is working on smart glasses that will potentially have two cameras: one for photos and video, and another for computer vision. The glasses will have a custom N401 processor that's based on some Apple Watch chips. Even with these capabilities, the first iteration isn't expected to have a display, which means it won't have full augmented reality capabilities.

Instead, the glasses -- which will come in four design options -- pair to a user's iPhone and give them access to Siri. The idea is for users to make phone calls, send texts, take videos, and ask Siri questions about their surroundings -- all hands-free. For example, if you're walking around in a new city and don't know the landmark you're looking at, you could just look at the building and Siri will use the camera to identify it for you.

Meta is already on its third-generation model for its glasses, so Apple isn't blazing any new trails here. But in typical Apple fashion, the company may be setting its sights on a market it can eventually dominate.

But Apple needs to fix Siri first.

Apple could win the smart glasses market using a tried-and-true method

It's no secret that Siri is a mess. It has been for years. And when Apple tried to roll out a newer version of Siri with Apple Intelligence a couple of years ago, it mostly fell flat.

But that's about to change. Apple has tapped Google's Gemini as its foundational model for a new version of Siri, which will likely debut later this year. This new Siri will have more capabilities to act within apps and have improved contextual awareness. And Apple could use it to make a pair of smart glasses, its next successful wearable device.

As Jason Moser, senior investment analyst at The Motley Fool, told Quartz, "Apple doesn't want to be first with AI, they just want to be the best."

If it gets Apple Intelligence right this time, delivering a capable and useful Siri, it could make its new glasses a stand-out product. One of the main reasons customers continue coming back to Apple, even though its products are expensive, is that it makes some of the best devices and pairs them with exceptional software.

That's why Apple has been able to command nearly 37% gross margins for its devices.

By offering its smart glasses as an accessory rather than a stand-alone device, Apple will follow a similar path to the one it took with the Apple Watch. It released its Watch long after smartwatches hit the market, and even had fewer capabilities than some at the time.

But it succeeded because it had enough features customers wanted, and combined the right mix of hardware and software that easily paired with a user's iPhone.

Apple's wearable success speaks for itself

Another reason Apple can succeed where others have failed is that the company's history of success with wearable devices gives it the upper hand.

Consider that Apple generated $35.6 billion from its wearable, home, and accessories segment last year, with an estimated $14 billion to $18 billion from Apple Watch alone. Its Watch also has about 50% market share in the smartwatch category, and its AirPods hold 41% of the earbuds market.

If Apple launches a newly capable Siri and uses its wearable tech prowess to deliver useful smart glasses, it might be enough to give Apple the upper hand in the smart glasses segment and help Apple quickly shift from being late to the smart glasses party to becoming the life of it.

Chris Neiger has positions in Apple. The Motley Fool has positions in and recommends Apple and Meta Platforms and is short shares of Apple. The Motley Fool has a disclosure policy.