Meta Platforms Inc. is in talks with EssilorLuxottica, which owns the Ray-Ban brand, to double the annual production capacity of Ray-Ban Meta smart glasses from 10 million to 20 million units by the end of 2026. If demand grows even further, they could triple capacity to as many as 30 million units. This plan comes after more than 2 million units were sold in less than a year, primarily in the US, where interest in models such as Ray-Ban Meta and the newer Meta Ray-Ban Display caused stock shortages. EssilorLuxottica, the largest manufacturer of eyewear from brands such as Ray-Ban and Oakley, reported exceptional third-quarter results, with smart glasses accounting for more than a third of its revenue growth. This success accelerated the original plans for 10 million units, but strong demand in the US caused delays in international deliveries. Meta is working with EssilorLuxottica on six smart glasses products, including older Ray-Ban Stories models that are no longer manufactured, as well as the current Oakley Meta.
Google is preparing a rival product
Google is trying to catch up with Meta in smart glasses through its Android XR platform, which offers deeper integration with the Android operating system and Gemini AI. Unlike Ray-Ban Meta glasses, which weigh only 48 to 50 grams and focus on a 12-megapixel camera, voice commands, and open-ear speakers for audio, Google is planning visual features integrated across the entire ecosystem. This platform is intended to serve as a foundation for manufacturer Magic Leap and focuses on accessing information and working on the go, while Meta emphasizes sharing content through Facebook and Instagram. Ray-Ban Meta glasses sell for approximately CZK 7,490 and are available right now, but Google expects Android XR to mature around 2026. Google is therefore playing the long game, aiming to set standards for the entire market rather than quickly launch a consumer product.
Meta is laying off employees in its Reality Labs division and shifting its focus
Meta Platforms Inc. has begun laying off more than 1,000 employees in its Reality Labs division, representing roughly 10% of the group’s total workforce of 15,000. Employees began receiving layoff notices on Tuesday morning, and the process continued throughout the week. The division is responsible for virtual and augmented reality hardware, software, and platforms, including Quest headsets. A Meta spokesperson confirmed that the company is shifting resources away from the metaverse, which generated losses of more than CZK 1.6 trillion over four years, and toward growth in AI-powered wearable devices. The money saved is to be invested in this area. Chief Technology Officer Andrew Bosworth explained in an internal memo that the company is moving teams and resources almost exclusively to mobile devices because they have billions of users and are growing faster, resulting in a more sustainable business. CEO Mark Zuckerberg emphasized the focus on AI-powered glasses for everyday use, including strong sales of Ray-Ban smart glasses and plans for massive investments in tens of gigawatts of computing power to compete with companies such as OpenAI, Google, and Microsoft.
Impact on the market and the future of smart glasses
This shift by Meta is affecting the entire smart glasses market, where worldwide sales are expected to rise from 6 million to 20 million units this year, primarily thanks to Meta, Samsung, and later Apple, which plans to enter the market in 2027. Reports of Meta increasing production caused Warby Parker’s shares to rise by 10%, as Google is working with Warby Parker and Gentle Monster. Meta is thus trying to maintain its lead over competitors such as Google with Android XR and Samsung. Demand is strongest in the US and China, but Meta faces challenges with deliveries outside the US due to production constraints.
