Meta's Bold Leap: Expanding AI Wearables to Challenge Apple's Dominance

As of last week, Meta (META) shares saw an increase of 0.98%. In the past week, the stock rose by 2.57% and has surged by 31.63% year-to-date, with the company reaching a market valuation of 1932.59 billion USD.

In recent developments, Meta has demonstrated a robust commitment to expanding its presence in the wearable technology market, particularly through its partnership with EssilorLuxottica. This strategic alliance has bolstered the sales of Ray-Ban Meta smart glasses, with sales revenue reportedly more than doubling year-on-year since their launch at the end of 2023. To manage the rising demand, EssilorLuxottica plans to scale its annual production capacity to 10 million units by the end of 2026.

Moreover, Meta appears to be investing heavily in the future of AI-integrated wearables. Meta purchased nearly 3% of EssilorLuxottica's shares at the market price, with a total investment valued at approximately 30 billion euros. This stake reflects Meta’s confidence in the global potential of AI smart glasses, which are seen as a viable alternative to mobile devices in scenarios like sports, commuting, and translation.

Meta’s strategy includes a series of product releases tailored to diverse market segments. In June, the company introduced the Oakley Meta smart glasses for athletes and sports enthusiasts, featuring endorsements from high-profile athletes. Additionally, an advanced smart glasses product, codenamed "Hypernova," is anticipated to launch by the end of the year, priced between $1,300 to $1,400, and equipped with a monocular display, advanced cameras, and AI chatbot functionalities.

CEO Mark Zuckerberg emphasizes that smart glasses contribute significantly to Meta’s AI strategy. They allow the company to independently develop hardware, manage distribution channels, and acquire manufacturing and global distribution capabilities. These efforts lay the groundwork for making smart glasses a mainstream consumer product.

Meta's strategic acquisitions continue to strengthen its capabilities in artificial intelligence. Recently, the company acquired WaveForms AI to advance its AI audio technology. This acquisition is aimed at developing next-generation voice interaction systems capable of understanding and mimicking human emotions. The founders of WaveForms, with extensive experience in the field, will join Meta’s newly formed Meta Superintelligence Labs, enhancing its AI divisions.

This relentless focus on integrating AI with consumer products is part of Meta's broader ambition to challenge Apple’s dominance in the consumer electronics space as the industry transitions to the next era of intelligent devices.