Despite Meta driving hype towards its Orion smart glasses at Connect a number of weeks ago, a self-proclaimed “time-machine” showcasing a potential future of AR wearables, the firm is already deeply involved in distributing AR smart glasses to consumers today.
The firm is gaining a fair success story with its Ray-Ban product partnership, which sees Zuckerberg’s firm leverage the latter’s famed branding to launch an AR-lite product and apparent testing bed for immersive features.
This success is only compounded by Ray-Ban parent firm EssilorLuxottica’s recent Q3 2024 earnings call, which, among other things, placed the company on Fortune’s ‘Change the World’ list and highlighted just how successful the Meta partnership is.
In an official statement, Francesco Milleri, Chairman and CEO, and Paul du Saillant, Deputy CEO, said that EssilorLuxottica “maintained solid momentum” in Q3.
Speaking on the Meta product partnership, the CEO’s also added:
The long-term partnership between EssilorLuxottica and Meta continues to write the bold story of smart glasses as the disruptive category in digital eyewear. – As we enter the fourth quarter with confidence, we remain on track with our long-term targets and continue driving meaningful transformation for the years to come.
EU Sales Success and AI “Killer Applications” in the US
EssilorLuxottica is reporting strong demand for the Ray Ban Meta smart glasses; notably, in EU regions, the firm reported that 60% of EU Ray-Ban stores mark the smart glasses as best-sellers.
CFO, Stefano Grassi noted that “on the frame side, I would say we continue to see strong demand from Ray-Ban Meta.”
Grassi noted:
It’s an overall success story that we see. Just to give you an idea, it’s not just a success in the U.S., where it’s obvious, but it’s also success in — success here in Europe. Just to give you an idea, in 60% of the Ray-Ban stores in Europe, in EMEA, Ray-Ban Meta is the best-seller in those stores. So it’s something that it’s extremely pleasing.
Moreover, Grassi explained how Ray-Ban Meta’s product is helping to set the firm apart with its leading innovation. It won the Silmo d’Or award for technological innovation in eyewear, proving “once again the EssilorLuxottica leadership in product innovation,” the CFO remarked.
In the US, Grassi noted that AI integrations on smart glasses represent a “killer application” for users. “We can’t wait to see that application rolled out in Europe. I think it would be extremely beneficial to consumers,” Grassi remarked.
Due to the success of the Ray-Ban Meta smart glasses, Grassi highlighted how EssilorLuxottica is expanding the “duration of the partnership.” The comment comes following Meta marking moves to purchase a five percent stake in Ray-Ban owner EssilorLuxottica. Calculations by Reuters, based on LSEG data, estimate the stake’s value at $4.73 billion, given an overall company valuation exceeding $94 billion.
Grassi added:
It’s a partnership that will be a journey that we’ll do together around wearable[s]. It’s a partnership that will last quite a few years, I would say that will take us to the next decade. It’s a partnership that will also encompass, presumably, I would say will encompass other brands.
The CFO explained, “if I have to judge by the results that we’ve seen so far with Ray-Ban Meta, the success the Ray-Ban Meta has had in many geographies, in every geography, I would say where it’s commercialized and sold, I should say that we’re very hopeful and confident that this is going to be a very successful journey together.”
Meta Enters “Multi-Generational” AR Smart Glasses Contract
Just days before Meta’s Connect 2024 event, EssilorLuxottica announced an extended partnership that will last into the 2030s. This new contract reinforces the collaboration between the two companies to develop “multi-generational smart eyewear products.”
EssilorLuxottica is currently experiencing sales success with its existing Ray-Ban Stories product, which is being distributed in the United States, Canada, the United Kingdom, Australia, Austria, Belgium, Denmark, Finland, France, Germany, Ireland, Italy, Norway, Spain, and Sweden.
At Meta Connect 2024, Meta introduced new AI features for Ray-Ban smart glasses, including live translation services. During a post-show Q&A, Meta CTO Andrew Bosworth said, “There have always been two major questions that needed to be answered to bring AR glasses to the mainstream. ” Bosworth also noted that challenges include developing “the fundamental technological breakthroughs” and use cases.
Bosworth said:
What can you do on AR glasses that you can’t do on any other kind of device? We feel like we’ve made progress on both of those questions with Orion and the good news is, you’ll see a lot of new devices from us in the next few years that build upon this work. There’s still plenty to be done to bring this to consumers. We have to bring the cost down and make it easier to produce at scale. Right now it’s are still prohibitively expensive as a consumer product, but make no mistake, this is the future.
Optimism within the Meta team is high, with the impressive showcase possibly indicating tomorrow’s technology. “It might be the most advanced consumer electronics device ever attempted,” proclaimed Bosworth.
He noted that smart glasses will be the “most impactful” new technology since smartphones. “People have dreamed about AR glasses like this for a long time, and that dream is finally coming true,” Bosworth added.
