XIAOMI(HK:01810) Sou Hu Cai Jing·2025-07-28 06:29Core Viewpoint - Xiaomi's entry into the AI glasses market has created significant industry buzz, marking it as the first major hardware player in China to do so, despite the overall market still being in its infancy and not yet profitable [3][4][12]. Company Insights - Xiaomi's first AI glasses were highlighted at a recent launch event, with CEO Lei Jun personally presenting the product, indicating its importance to the company [3]. - The AI glasses project is part of Xiaomi's wearable division, with a dedicated team of only a few dozen people working on it [4][6]. - The project faced challenges in gaining internal consensus, but ultimately received approval from Lei Jun, which accelerated its development [6][8]. - The glasses have features such as video recording, AI interaction, and color-changing capabilities, leading to demand that exceeded initial expectations [4][15]. Market Dynamics - The AI glasses market is still considered niche, with various companies like Baidu and Rokid also entering the space, but Xiaomi's involvement is seen as a catalyst for industry growth [12][17]. - The global market for AI glasses was reported at 2.34 million units last year, with Ray-Ban Meta dominating the market share [17]. - Xiaomi aims to leverage its extensive retail network, with the AI glasses already available in over a thousand Xiaomi stores and hundreds of traditional eyewear shops [18]. Sales and Projections - The initial sales of Xiaomi's AI glasses have surpassed expectations by several times, with a target annual shipment of over 5 million units within three years [15][18]. - The glasses are priced at 1999 yuan, which allows for some profit, but overall investment still results in a loss [12][18]. - The potential market for smart glasses is significant, especially considering the large population of myopic individuals in China, which could drive demand beyond 50 million units [18].