The Smart Glasses Industry May Finally Be Turning a Corner
After years of struggling to find profitability, the smart glasses industry may finally be reaching an inflection point, driven by advancements in technology and partnerships with major players like Google and Meta.

Smart Glasses Industry May Finally Be Turning a Corner">
The smart glasses industry has long been a tantalizing prospect for Silicon Valley, promising a future where people can enjoy the benefits of mobile computing without being tethered to their phones. However, the industry has been a financial black hole, with massive investments yielding little to no profit. That may be changing, according to Chi Xu, founder and CEO of Xreal, a longtime partner of Google.
Xu met with me at Google's I/O conference in Mountain View last week, where he was promoting Xreal's Project Aura, its latest effort to create functional XR glasses that people actually want to use. According to Xu, the industry's struggles are rooted in the complexity of the technology. "Everybody's losing money," he said.
"That's because it's very hard, what we're doing." However, Xu and other industry insiders believe that the business has turned a corner. The partnership between Meta and Ray-Ban, which launched last year, was a significant milestone, selling a large number of units. While Reality Labs, the division responsible for the glasses, still operates at a massive loss, it's a step in the right direction.
Xreal's newest model, Aura, is a wired smart glasses system with OLED displays embedded within the frames, allowing users to watch high-resolution videos. The glasses come with a "puck" - a phone-shaped mini-computer that powers the experience. While the setup may seem awkward, Xu argues that it offers a wider variety of fun experiences, including an immersive Google Maps app, VR YouTube videos, and a "painting app" that enables users to create holographic imagery.
The company envisions the device being used not just by casual consumers but also by professionals. "It's not just about watching the NBA game in a hologram type of format, you could also go to a coffee shop and do some work," Xu said. Currently, the glasses are only available for developers, but the plan is for them to launch commercially later this year.
Xreal is also working on an IPO, expected to take place before 2026. Xu notes that his company has been raising its gross margin while lowering its costs for marketing and sales. "Next year is the year when we could actually break even," he says.
As the smart glasses industry continues to evolve, Xreal is poised to be a leader in the space, with Aura and future products driving growth and innovation.
Source: TechCrunch