Meta and Google are intensifying their focus on smart glasses development, with 2025 emerging as a crucial year for innovation in this sector.
Meta aims to expand production significantly, while Google, despite earlier setbacks, is strengthening its position through the strategic acquisition of HTC's team. Both companies face mounting challenges in their Asian operations due to increasing US tariffs and political tensions, even as Chinese competitors like Xiaomi and ByteDance enter the market.
The consumer electronics industry, grappling with stagnation in smartphone innovation, has witnessed challenges affecting even market leader Apple. While many industry players hope generative AI will reinvigorate smartphone sales, attention has notably shifted back to smart glasses, with companies riding the AI wave seeking to reestablish themselves in this market segment.
Meta's 2025 strategic roadmap
Meta's financial results for the fourth quarter and full year of 2024 revealed impressive growth. By year-end, daily active users across Meta's applications reached 3.35 billion, a 5% increase from the previous year, with total revenue climbing to US$164.5 billion, representing 22% year-over-year growth. The company reported capital expenditures of US$39.23 billion.
Following the earnings announcement, Zuckerberg expressed enthusiasm on social media about Meta's achievements in AI, smart glasses, and social media platforms, outlining plans for further expansion in 2025. He detailed how Meta's AI assistant will enhance personalization to better serve individual users. The company's Llama 4 model is undergoing training, while the Llama 4 mini has completed pre-training, with larger models showing promising development. Zuckerberg highlighted an AI engineering agent capable of intermediate-level programming and problem-solving, emphasizing its substantial business potential.
Smart glasses as AI's ideal platform
Zuckerberg discussed Meta's smart glasses strategy, noting that historically, third-generation consumer electronics products typically achieve sales between 5 million and 10 million units. The company's collaboration with Ray-Ban has gained significant momentum, with 2025 expected to reveal whether sales will continue their upward trajectory or require additional market development time. He emphasized smart glasses' potential as an optimal platform for AI applications. According to The Verge, Zuckerberg revealed in an internal meeting that Meta sold over one million smart glasses in 2024, targeting two to five million units in 2025, with plans for new model releases.
Google is also strengthening its position in the smart glasses market. Following an initial setback and early 2024 downsizing of its AR hardware division, the company is now leveraging AI technologies and the Android XR system for next-generation product development. Google has invested US$250 million to acquire part of HTC's technology team, enhancing its XR capabilities and reinforcing its Asian supply chain presence.
Rick Osterloh, senior vice president of Google's Platform and Devices division, recently announced an internal initiative offering voluntary severance packages to US-based employees. Industry analysts interpret this as a strategic move to optimize its US hardware operations while expanding its workforce in Asia, where labor costs are lower. However, the US government's additional 10% tariff on Chinese goods is increasing operational costs, creating new challenges for American companies in Asia.
China decoupling challenges
Despite Google's stated intention to gradually separate its supply chain from China, the company continues to face pressure from Chinese authorities, particularly as manufacturing partners relocate to Southeast Asia. While interest in smart glasses grows, Google and its competitors encounter significant obstacles in research, development, and manufacturing within the Asian market.
Chinese manufacturers have recently launched several new smart glasses models, attracting considerable market attention. The segment has become another competitive frontier between American and Chinese companies, particularly in AI/AR technology advancement and cost management.
DIGITIMES Research reports a marked increase in AI glasses products at CES, projecting over 100 new models to launch this year. Major companies planning AI glasses releases include Xiaomi, ByteDance, Samsung Electronics, Google, and others. Meanwhile, Apple, which had previously pursued smart glasses development, is reportedly suspending these plans.