Smart glasses are a sign of potential
- The Metaverse sector has been moribund for 3 years, but the ability to use voice as a decent user interface has improved the smart glasses experience so much that it is seeing real traction, potentially signalling a recovery in interest and the resumption of development.
- Meta Platforms has been tinkering with smart glasses for a while, and the success of the Ray Bans smart glasses has given it, Snap and Google the confidence to start pushing forward with the Metaverse once again.
- We are seeing this everywhere, with increasing attention being paid in conference calls to this still fledgling segment, increasing numbers of product and software launches, as well as Google tarnishing the reputation of TED Talks to run a 15-minute commercial.
- This week will be no different as Meta accidentally leaked video of what it is going to launch at its Meta Connect event this week.
- This is a new series of glasses from both Ray Ban and Oakley (both owned by Luxottica) that, for the first time, will include some form of display.
- The devices are also a step up in that they come with a wristband, which is where the extra processing has been offloaded to.
- Historically, pucks and external processing have not gone down well with users, as they represent extra baggage and yet another device that has to be charged up.
- The bet here is that users like the voice-based AI interaction so much and the added functionality that the display brings that they will be willing to wear the extra piece of equipment.
- The big question is why not just unload the processing onto the smartphone, which is where the AI voice processing happens, and I suspect that the answer is latency.
- When one starts adding displays into glasses, the tolerance for latency falls substantially, which is why I suspect Meta was forced into a position of needing dedicated hardware running in real time to drive the display.
- It does not have enough control over a smartphone, and smartphones don’t really have the hardware that would enable this to become a reality.
- Snap has also picked up on this trend, releasing a new version of its smart glasses software and reiterating its promise to release a consumer-oriented product in 2026.
- Google has also put its Google Glass debacle behind it and demonstrated a smart pair of glasses (“AI Glasses”) that have a small display and are powered by Gemini.
- To be fair to Google, the demonstrations were pretty good on both occasions that it demoed the device, which is expected to go on limited release at the end of this year and more broadly in 2026.
- At the moment, Meta dominates this market and its deepening relationship with Luxottica, in which it now has 3% investment, which will help ensure that Meta is the preferred partner for smart glasses.
- Despite the increase in interest in smart glasses and the improvement in the experience thanks to AI voice control, there still remains a very long way to go before this sector is even relevant.
- For example, if unit shipments of VR and AR devices were to double every year for the next 7 years, it would still only be a small fraction of the size of the smartphone market.
- Furthermore, the technology itself remains very far away from what the average consumer would consider to be a delightful and easy-to-use user experience, meaning that it will be years before it takes off meaningfully and even longer (if ever) before it starts displacing the smartphone as the go-to digital device.
- The two main beneficiaries here are Qualcomm (which is the industry standard for AR and VR silicon outside of Apple) and Meta Platforms, which has an early lead and has complete vertical control of its platform for the first time. (Others to keep an eye on are Unity and Roblox.)
- This has been a key strategic priority for Mr Zuckerberg, who is still smarting from the fact that his existing businesses operate at the whim of Apple and Google.
- I already own Qualcomm, and at the moment, no one cares about the Metaverse very much, making this a free option inside the company, if it hits the mainstream at some point.
