Facebook has been rumored to be working on smart glasses since 2019. The company announced updated plans on the long-rumored growth item during its earnings call this week.
What Happened: Facebook Inc FB CEO Mark Zuckerberg confirmed on its earnings call its next product release will be smart glasses through a partnership with Ray-Ban, a unit of EssilorLuxottica ESLOY.
“The glasses have their iconic form factor and they let you do some pretty neat things,” Zuckerberg said.
The CEO did not offer a release date but said he is excited to get the product to consumers. The glasses could also be the first of many to come as Zuckerberg referred to the Ray-Ban glasses as part of the company’s “journey towards full augmented reality glasses in the future.”
Why It’s Important: Launching smart glasses is a continued step in Facebook’s move to go all-in on the metaverse. The glasses will offer augmented reality efforts and could help Facebook become a leader in the space.
The glasses are drawing comparisons to Google Glass, a product from Alphabet Inc GOOGGOOGL. Snap Inc SNAP launched the Spectacles smart glasses to strong demand.
Facebook’s smart glasses are expected to offer the ability to take calls, see information and broadcast livestreams. Zuckerberg said the glasses will let users “do some pretty neat things.”
Facebook confirmed before that the glasses will not have an integrated display, which could mean a paired smartphone app is needed for the glasses. Spectacles also required a paired smartphone app.
A key question for investors could be how much revenue and profits the smart glasses will generate.
“Our business model isn’t going to primarily be around trying to sell devices at a large premium or anything like that because our mission is around serving as many people as possible,” Zuckerberg said.
Facebook is also rumored to be working on a smartwatch to expand its hardware offering.
FB Price Action: Facebook shares are down 0.35% to $357.08 on Friday at publication.
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