Will it? Even if you offer people AR glasses and smartphones at the same price, I'd expect most people to pick the phone. Nobody wants to tap their glasses on a Square reader to buy coffee, or ask their specs to take a picture.
The VR/AR modality struggles when OEMs rely on unique native experiences as a selling point. There's no "killer app" for VR a even decade after the original Oculus DTK. Palmer Luckey sold Oculus to go work on building cruise missiles, to give you an idea of how awful VR's prospects are.