Apple (AAPL) is reportedly in the late stages of developing new AirPods with built-in cameras, which could become the tech giant’s first major wearable built specifically for the AI era. According to Bloomberg, the prototypes are now in advanced testing and have a near-final design, with cameras placed in both earbuds to help the device understand the user’s surroundings. Importantly, these cameras are not meant for taking photos or videos. Instead, they would act more like “eyes” for Siri, thereby giving Apple a way to turn AirPods into a more useful AI assistant.
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The idea is that users could ask questions based on what they are looking at, such as asking what to cook while facing ingredients. Apple is also testing other uses, such as reminders based on what the earbuds see and more detailed walking directions that reference nearby landmarks. Interestingly, the product had been expected as early as the first half of this year, but delays in upgrading Siri pushed things back.
However, privacy will likely be a major issue because people may not want camera-equipped earbuds nearby. To address this, Apple has added a small LED light that turns on when visual data is sent to the cloud, though it is unclear how noticeable the light will be. Nevertheless, the camera-equipped AirPods have been in development for about four years and are part of an AI hardware push that also includes:
- Smart glasses
- Camera pendant
- AI smart home devices
- Foldable iPhone
- Touch-screen MacBook
Is Apple a Buy or Sell Right Now?
Turning to Wall Street, analysts have a Moderate Buy consensus rating on AAPL stock based on 17 Buys, 10 Holds, and one Sell assigned in the past three months, as indicated by the graphic below. Furthermore, the average AAPL price target of $312.60 per share implies 8.8% upside potential.
