Apple is reportedly developing a new generation of wearable and mobile hardware, including AirPods equipped with internal cameras and a second-generation foldable iPhone, targeting a 2027 release. These initiatives are part of a broader push to integrate advanced artificial intelligence and computer vision into the company’s consumer device lineup, according to reports from Bloomberg.
Integrating Visual Intelligence into Wearables
Apple is working on a version of its AirPods, internally codenamed "B798," that features integrated cameras. Unlike traditional cameras used for photography, these sensors are designed to capture visual data to assist the device’s AI, specifically to provide context to Siri. This project aligns with Apple’s broader "Visual Intelligence" strategy, which aims to allow devices to recognize and respond to the user’s physical environment.

Development of these AirPods has faced challenges, including the complexity of building AI models capable of object recognition and software integration. While the company is exploring features like improved pedestrian navigation and situational awareness, the AirPods remain in the development phase. The project follows Apple’s recent introduction of similar AI-driven visual capabilities for its Vision Pro headset, as detailed during the company’s recent Worldwide Developers Conference.
Timeline for Foldable and Anniversary iPhones
Apple is preparing a multi-year hardware rollout that includes a second-generation foldable iPhone by 2027. This follows the company’s anticipated entry into the foldable market, with initial models currently in the pipeline. By planning an update only one year after its expected foldable debut, Apple is signaling a commitment to iterating on the form factor to compete with established rivals like Samsung.
In addition to foldables, the company is developing a special 20th-anniversary iPhone model, internally referred to by the codenames "V73" and "V74." This device is expected to feature an edge-to-edge display and curved glass, serving as a successor to the current Pro and Pro Max lines. Both the anniversary model and the second-generation foldable are slated to utilize the 2-nanometer A21 chipset, a component currently under development with manufacturing partners, including TSMC.
Strategic Shift Toward AI-Centric Hardware
The company’s roadmap reflects a transition toward AI-native hardware. Beyond the camera-equipped AirPods, Apple is investigating other form factors, such as AI-enabled smart glasses—codenamed "N50"—and potential wearable AI pendants. These projects are intended to counter the hardware strategies of competitors like Meta, which has already established a presence in the smart glasses market.

These hardware efforts are supported by internal testing of future iOS versions, including "Bell," the internal codename for iOS 28. As Apple transitions to new leadership under John Ternus, who is set to assume the role of CEO in September, these upcoming products will serve as the primary drivers for the company’s long-term growth. Apple has not provided official comment on these development timelines, and release schedules remain subject to change as testing progresses.
Development Roadmap Overview
| Project | Expected Focus | Core Technology |
|---|---|---|
| Camera AirPods | AI-driven situational awareness | Computer vision sensors |
| 2nd-Gen Foldable | Iterative hardware refinement | 2nm A21 chip |
| Anniversary iPhone | Premium design/Display | 2nm A21 chip |
| Smart Glasses | Competitor to Meta’s hardware | AI-integrated optics |
Note: Product codenames and release dates are based on industry reporting and internal development cycles, which are subject to change by Apple.