According to Zhichuang Finance APP, smart glasses will become the focus in 2025. According to data from Counterpoint Research, the cooperation product between Meta (META.US) and glasses manufacturer EssilorLuxottica has become a best-seller in most Ray-Ban stores in Europe, the Middle East, and Africa, with total sales exceeding 1 million units. This early success has also encouraged competitors to develop their own smart glasses.

Ray-Bans glasses integrate a microphone, speakers, camera, and AI assistant into a familiar frame, each priced at around $300. Unlike bulky virtual reality or augmented reality headsets that failed to win public favor, Meta's device actually looks like regular glasses, weighing less than 50 grams, and offers practical daily functions such as real-time translation, hands-free picture, and video capture based on built-in memory and processing capabilities. These smart glasses can also connect seamlessly with Smart Phones, similar to wireless earbuds. This is all thanks to the latest AI chipsets, Software, and Battery. Additionally, Meta's Ray-Bans claim a battery life of four hours, while competitor Snap's battery life is less than one hour.

Other technology giants are also focusing on this area. In November, Baidu launched a pair of glasses powered by the AI robot Ernie. A few days later, foreign media reported that Amazon (AMZN.US) is developing smart glasses for delivery personnel. Suppliers are increasing production capacity: specialty lens manufacturer Vuzix estimates that the company's annual production capacity will increase from about 1 million units in 2024 to 50 million units by 2028. According to reports, Apple (AAPL.US), Samsung Electronics, Xiaomi, and Alphabet (GOOGL.US) are all researching new products.

However, profitability may still be out of reach. The stylish Ray-Bans glasses have not disclosed financial details. According to available information, they are located in Meta's Reality Labs division, which also includes the augmented reality glasses prototype Orion. According to Visible Alpha's forecast, the division's revenue is expected to exceed $2 billion in 2024, an increase of 16% year-on-year.

However, according to Visible Alpha, despite Reality Labs being the fastest-growing division in the coming years, its Operating losses are expected to reach $60 billion over the next three years. According to The Information, the parent company Meta has requested the division to cut nearly 20% of its spending from now until 2026.

The dawn of hope has emerged. Analysts at Counterpoint estimate that the cost for Meta and EssilorLuxottica to manufacture a pair of Smart Phone Ray-Ban glasses is nearly $135, which means a gross margin of 45%. According to analysts at Itaú BBA, this ratio is higher than the approximately 30% gross margin of the Apple Smart Watch and close to the 50% gross margin of AirPods. Reducing the costs of processor chips and Batteries without compromising functionality and features will be a challenge, but it is not impossible.

By 2025, this commitment will attract more companies and investors trying to emulate Mark Zuckerberg's case. However, it must also be said that finding a ready-made winner for other participants to follow will be difficult.