Meta Platforms(US:META) Xin Lang Cai Jing·2025-12-12 01:37Core Viewpoint - The global eyewear manufacturer EssilorLuxottica is heavily investing in the smart glasses sector, but this gamble faces challenges from privacy concerns and increasing competition [1][2]. Group 1: Product and Market Performance - The AI-driven Ray-Ban Meta smart glasses, launched in collaboration with Meta, have shown significant revenue growth this year [1][2]. - EssilorLuxottica's stock has risen by 28% this year, supported by strong performance and recovery from tariff impacts, reaching record highs [5][11]. - The company currently holds a 60% market share in the smart glasses sector, according to Barclays [11]. Group 2: Privacy Concerns - The smart glasses raise serious privacy issues, particularly regarding the use of personal data to train AI models and the lack of transparency for bystanders [3][10]. - European regulations, such as the AI Act and GDPR, impose strict requirements on data recording, complicating compliance for wearable devices [4][10]. - A survey indicated that while owners see smart glasses as enhancing self-image and social connections, non-users express concerns about privacy violations and social disruption [5][10]. Group 3: Competitive Landscape - Major tech companies are entering the smart glasses market, with Alibaba launching its Quark AI glasses in China, and Apple expected to release its model next year [6][11]. - Google is collaborating with Warby Parker and Kering to develop its version, anticipated for release in 2026, while Amazon and Xiaomi are also exploring this market [6][11]. - Analysts warn that as competitors introduce better products, EssilorLuxottica's first-mover advantage may diminish, and smart glasses could cannibalize its traditional eyewear business, which accounts for about 25% of its revenue [11]. Group 4: Strategic Initiatives - EssilorLuxottica is expanding its product portfolio, including a new model with an internal display and a gesture-control wristband [12]. - The company aims to drive innovation and set new industry standards while welcoming competition as a means to stimulate market growth and consumer choice [12].