AI Smart Glasses Industry: The Capacity Battle Has Begun

Supply Chain Tensions: Hidden Worries Behind Industry Prosperity

Recently, the AI smart glasses industry has witnessed a flourishing scene, yet with underlying supply chain tensions. The strong sales of products like Meta's Ray-Ban Meta have prompted major companies to raise their sales forecasts and increase investments, surging the demand for key components such as camera modules and SoC chips. Europe's leading eyewear company, EssilorLuxottica, CEO Francesco Milleri stated that the company is boosting the production capacity of Ray-Ban Meta smart glasses, aiming for an annual output of 10 million pairs by the end of next year. Domestic giants like Xiaomi, which share the same core components as Meta, have also entered the market, further intensifying the supply crunch.

Challenges for Small and Medium-sized Vendors

Amid the supply chain strain, small and medium-sized vendors face significant hurdles. Unlike large manufacturers that can secure priority access to components due to established supply chain relationships and stronger bargaining power, smaller vendors often struggle to obtain sufficient supplies, leading to delayed production and shipping. Those who opt for the same supply chain as large manufacturers are particularly disadvantaged, as they are more vulnerable to supply shortfalls and may miss market opportunities.

Roots of Supply Chain Issues and Their Impact

The supply chain problems in the AI smart glasses industry stem from the immaturity of the supply chain in its early stages. Currently, there are few specialized components like Soc chips and camera modules designed specifically for AI smart glasses, making the supply chain susceptible to shortages. Additionally, the production process for smart glasses is complex and multi - factorial. Any issue in product definition, marketing, supply chain integration, or other aspects can disrupt production and delivery.

Industry's Response Strategies and Future Outlook

To tackle the capacity battle, the industry must adopt comprehensive strategies. Vendors need to enhance supply chain management and establish stable supplier relationships to ensure a steady supply of key components. Small and medium-sized vendors should diversify their supply chain choices and seek differentiation to avoid direct competition with large manufacturers. Moreover, the industry should foster collaborative development among upstream and downstream enterprises to drive innovation and ease supply chain pressures.

The future of the AI smart glasses industry is promising, but sustainable development hinges on resolving critical issues like supply chain strain. Only by doing so can more vendors establish a foothold in this emerging field and propel the industry toward new heights.