Apple Eyes AI Wearable Pin As OpenAI Prepares First Consumer Device: Report

Apple Inc. (NASDAQ:AAPL) is reportedly working on a new AI-powered pin, which could be launched as early as 2027, to compete with OpenAI’s first wearable set to debut in 2026.

AI Wearable Still in Early Development

The wearable, similar in size to Apple’s AirTag, is still in the early stages of development and may not come to fruition. It is expected to feature multiple cameras, a speaker, and a microphone, reported The Information on Wednesday.

It is unclear if the device will be compatible with other Apple products, such as AirPods or the rumored smart glasses.

The wearable technology market has been difficult for newcomers to crack, a reality highlighted by the troubles of Humane, a startup launched by former Apple employees. Its AI Pin, which projected an interface onto a user's palm, drew criticism for sluggish performance and weak battery life. The device sold fewer than 10,000 units before portions of the company were ultimately acquired by HP for $116 million.

Earlier this month, it was reported that OpenAI is moving its first AI hardware project to Foxconn as it advances plans for a Jony Ive–designed consumer device, codenamed "Gumdrop," targeted for release in 2026 or 2027.

The product—possibly a smart pen or small audio device may include a microphone and camera to sense its environment and enable features like handwritten note transcription into ChatGPT.

Apple Ramps Up Push Into AI Wearables

Apple’s move into the AI-powered wearable market comes amid a broader push into AI technology. The company recently announced a partnership with Alphabet Inc. (NASDAQ:GOOG) (NASDAQ:GOOGL) to use Google’s Gemini models to power Siri, a move that ARK Invest’s Cathie Wood sees as a sign of Apple’s strategic weakness in the AI sector.

However, Apple’s shift from OpenAI‘s ChatGPT to Google Gemini was seen as a significant step in strengthening Siri’s capabilities, signaling a more serious approach to fixing Apple Intelligence.

Apple’s expansion into AI-powered wearables was first reported in December 2025, with the company planning to launch smart glasses and AI-powered AirPods in 2026. The development of a new AI-powered wearable could be another step in this direction.

Benzinga's Edge Rankings place Apple in the 90th percentile for quality and the 65th percentile for momentum, reflecting its mixed performance. Benzinga’s screener allows you to compare Apple’s performance with its peers.  

Price Action: Over the past year, Apple stock climbed 11.23%, as per data from Benzinga Pro. On Wednesday, the stock edged 0.39% higher to close at $247.65.

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Disclaimer: This content was partially produced with the help of AI tools and was reviewed and published by Benzinga editors.