To capitalize on the growing demand for wearables, Meta (META) is reportedly in discussions with partner EssilorLuxottica (ESLOF) (ESLOY) to double production of AI-enabled Ray-Ban smart eyeglasses by the end of 2026.
According to Bloomberg, Meta (META) and EssilorLuxottica (ESLOF) (ESLOY) have discussed a production target of 20M units or more by the end of this year, with the potential to increase to more than 30M if needed.
EssilorLuxottica (ESLOF) (ESLOY) is currently producing 10M Ray-Ban glasses annually.
The ambitious production target underscores Meta’s (META) commitment to increase investment in artificial intelligence and the company’s confidence in the widespread adoption of smart glasses. Last week, the company said it was delaying the international expansion of Ray-Ban Display glasses due to “limited inventory” and “unprecedented demand,” while reports circulated on Monday that Meta (META) was reducing its metaverse staff by 10% to reallocate assets to the teams developing augmented reality and artificial intelligence.
By ramping up production of smart glasses, Meta (META) hopes to expand its lead in the smart glasses market over rival Google (GOOG). Through a $150M investment in Warby Parker (WRBY), Google (GOOG) is developing intelligent glasses intended for all-day wear. The Android XR-powered glasses will be available this year and will include audio-focused glasses and display glasses.
While the news has done little to bolster Meta (META) shares, EssilorLuxottica (ESLOF) (ESLOY) and Warby Parker (WRBY) are both getting a lift with the former up 1.5% and the latter gaining more than 7% on speculation Google (GOOG) will match Meta’s (META) aggressive production goals.