This article first appeared on GuruFocus.

Oct 2 – Apple (NASDAQ:AAPL) is changing course on its mixed-reality strategy, choosing to prioritize smart glasses powered by artificial intelligence over a major reboot of its Vision Pro headset, according to Bloomberg. The company has reassigned staff who were working on a lighter, more affordable Vision Pro toward smart glasses development, aiming to compete directly with Meta Platforms (NASDAQ:META).

• Is AAPL fairly valued? Test your thesis with our free DCF calculator.

Engineers are developing two versions of the glasses. One will connect to an iPhone and operate without its own display, with a potential release as early as 2026. A second version would include a built-in display, similar to the recently launched Meta Ray-Ban Display. At the same time, Apple still intends to refresh its Vision Pro with a faster processor and a modest redesign by the end of this year. FCC testing records suggest the updated headset is already in the pipeline.

The smart glasses are expected to rely on voice commands, AI features, and an upgraded Siri projected for release in March. Importantly, they are set to carry a lower price tag compared with the Vision Pro, which launched at $3,499. Meta’s Ray-Ban Display glasses, priced from $799, hit the market last week, signaling intensifying competition in wearable AI technology.

Based on the one year price targets offered by 43 analysts, the average target price for Apple Inc is $248.00 with a high estimate of $310.00 and a low estimate of $175.00. The average target implies a downside of -2.92% from the current price of $255.45.

Based on GuruFocus estimates, the estimated GF Value for Apple Inc in one year is $225.34, suggesting a downside of -11.79% from the current price of $255.45. Gf value is Gurufocus’ estimate of the fair value that the stock should be traded at. It is calculated based on the historical multiples the stock has traded at previously, as well as past business growth and the future estimates of the business’ performance. For deeper insights, visit the forecast page.