Apple is developing camera-equipped AirPods that will launch in late 2027 alongside its 20th anniversary iPhone and a next-generation foldable model. These earbuds represent Apple's first wearable AI product, with cameras positioned in the stem to capture environmental data rather than photos or videos.

The cameras feed visual information to Siri, enabling the assistant to identify objects and answer questions about the wearer's surroundings. Features may include contextual reminders and enhanced walking directions. Apple already offers similar functionality through Visual Intelligence in iOS 27, which analyzes photos in a dedicated Siri Mode.

Design-wise, the AirPods resemble the current AirPods Pro 3 but include a privacy indicator light that activates when cameras stream data. Apple initially aimed for a 2026 release, but AI development challenges and object recognition modeling pushed the timeline back. All three upcoming devices are currently being tested with iOS 28, though Bloomberg notes the schedule remains fluid.

Apple's smart glasses project, potentially arriving by late next year, suggests the company is building an ecosystem of wearable AI devices. The AirPods camera technology could serve as a stepping stone toward more sophisticated AR applications, positioning Apple to compete with Meta and Google in the emerging wearable AI market.