Adam Kazwell, Product Manager for hire
Here's what I think will happen based on watching Apple's responses over the years:
1) They'll wait, observe, and judge.
2) They'll continue to iterate on existing pieces of relevant technology.
3) They'll build a product/ecosystem around a new input method (if there's an opportunity to provide a great experience).
Step 1:
They'll first respond by waiting - to see if the product/market validates itself. Remember how long it took Apple to respond to the MP3 market or the netbook market? I don't think Apple is in any hurry to start work a new product to compete with the not-yet-launched goggles from Project Glass.
Step 2:
Outside of the hardware, the Project Glass experience seems to rely heavily on voice control and maps. Apple is already involved in these areas with Siri and the rumors that they'll be offering maps of their own, separate from Google. I think they'll continue to improve their capabilities in these areas (and would have done so even in the absence of Project Glass).
Step 3:
Watching the demo, Project Glass seems to offer a new, sight-based navigation - this is the area of opportunity for Apple. Early Macs were built around the mouse, the iPod was built around the scroll wheel and the iPhone/iPad built around the touchscreen. Apple excels at many things, but specifically at offering great experiences that fit new user input methods:
(Image from Horace Dediu)
Can't wait to see what happens.
NYT link with more about Project Glass:
http://bits.blogs.nytimes.com/2012/04/04/google-begins-testing-its-augmented-reality-glasses/
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