The Competition in AI/AR Smart Glasses and the Advancement of Chinese companies in the Supply Chain Ecosystem

Meta officially announced its new products at the Meta Connect 2025 event on the 18th of last month (the 17th in US time), and began launching the Meta Ray-Ban Display smart glasses—its first consumer glasses to bring a display—in the US at the end of September. Meta continues its strategy to dominate the AI/AR glasses market. According to a post by Meta CTO Andrew Bosworth on Threads on October 2nd, the Meta Ray-Ban Display smart glasses have nearly sold out in physical stores, and November reservations are also almost fully booked. He stated that the market response to the product has been stronger than expected, and the company is working hard to keep up.

Meanwhile, over a year after its launch, the Vision Pro has gradually faded into the background. According to external reports, last year’s total sales of the Vision Pro fell below one million units, significantly underperforming market expectations. Additionally, rumors have intensified that Apple has halted development of a low-cost Vision Pro model and is shifting its strategic focus entirely to smart glasses. The goal is to launch a product capable of directly competing with Meta’s Ray-Ban smart glasses, with the initial smart glasses launch target date reportedly moved up to 2026. This pivot signifies Apple’s recognition that ‘AI+AR’ devices hold promise as the next generation of mobile terminals.

Samsung is also collaborating with Google to develop the Project Moohan XR headset, and its smart glasses Haean may also be unveiled this year. China’s Alibaba company has also announced ‘Quark AI Glasses,’ reported to launch by the end of 2025. Companies like Xiaomi and Baidu are also entering the market one after another, continuously fueling market excitement. Furthermore, the rise and expanding market share of domestic Chinese AR glasses brands like XREAL, RayNeo, Rokid, and INMO are evident.

From the supply chain perspective of smart glasses, the mutual penetration of AI and AR technologies has created an industrial ecosystem. The role of Chinese companies within this ecosystem is also evolving. While gaps persist in advanced core areas, they are emerging as ecosystem participants beyond their traditional supply chain roles through vertical integration within companies and external technology collaborations. In essence, they are becoming key drivers in this new industry. For instance, in Meta’s Ray-Ban Display glasses, Chinese company Goertek handles manufacturing, and numerous Chinese component suppliers are involved in internal parts like LCoS displays, batteries, and camera modules. Indeed, at the recent CIOE 2025 optoelectronics exhibition held in Shenzhen, China, the strong showing of Chinese companies like JBD, Goeroptics, and Sunny Optical was evident in LEDoS panels and optical waveguide components applied to next-generation AR glasses products.

In summary, major tech companies like Meta, Apple, and Samsung have recently shown active movements in the AI/AR glasses sector, further strengthening the influence of AI+AR glasses as a field receiving high attention. Therefore, as the industry ecosystem enters a critical transition phase and growth period, companies across the industrial supply chain are expected to intensify competition while actively pursuing technological breakthroughs and collaborative ecosystem development. Amidst this, Chinese companies are making notable strides. Benefiting from the Chinese government’s support for strategic industries and the policy trend positioning AR/XR as a core element of the digital economy, domestic optical module, display, and component companies are actively participating in the AR/XR glasses ecosystem.

Namdeog Kim, Senior Analyst at UBI Research(ndkim@ubiresearch.com)

2025 Micro-LED Display Industry and Technology Trends Report