Meta, after significant losses in its virtual reality (VR) endeavors, is shifting its focus to smart glasses, launching its most advanced model, Hypernova, at its annual Connect event. The glasses, featuring a small display controlled by hand gestures via a neural-enabled wristband, represent a significant departure from the company’s previous VR-centric strategy. Priced at $800, Hypernova builds upon the success of the Ray-Ban Meta smart glasses, aiming to establish a new market segment. The earlier appearance and subsequent removal from Meta’s YouTube suggest a high level of anticipation, despite internal expectations of moderate sales.
The launch comes amidst investor concern regarding the billions of dollars Reality Labs, Meta’s hardware division, has lost since late 2020. Justin Post of Bank of America Securities acknowledges the long-term investment nature of the project but emphasizes the need for demonstrable progress toward a return on investment. Smart glasses are viewed as a more commercially viable path to success than VR headsets in the near term, given the latter’s niche market and slower projected growth. The shift in focus from VR headsets to glasses is considered a strategic move to target a potentially larger consumer base.
Hypernova represents a middle ground between the simpler Ray-Ban Meta glasses and the more experimental Orion augmented reality glasses. While Orion offers impressive 3D projection capabilities, its complexity and cost make mass production challenging. Analysts believe that a single-display device, such as Hypernova, offers a more practical approach to building a functional ecosystem of apps and driving consumer adoption. The success of Ray-Ban Meta glasses, which saw triple-year-over-year sales growth, provides a solid foundation for optimism.
Meta’s AI strategy is also expected to play a crucial role. The integration of AI features in Hypernova could make it a more powerful platform than smartphones, according to analysts. However, success hinges on fostering a robust developer ecosystem to create compelling applications. The $800 price point, significantly higher than the Ray-Ban models, presents a challenge, as does the risk of consumer rejection. Despite these challenges, Meta’s ambition is for smart glasses to evolve into the next major personal computing platform, a goal shared by competitors like Apple and Google, who are also developing their own smart glasses technologies. The current competitive landscape suggests that Meta’s investment in the smart glasses sector may have been a strategically sound move.
