Ray-Ban and Meta Platforms Inc (NASDAQ: META) glasses have become the top-selling product in 60% of Ray-Ban stores across Europe, the Middle East, and Africa (EMEA). Companies commonly use this region to define their global market divisions.
EssilorLuxottica CFO Stefano Grassi shared the update during the company's third-quarter 2024 earnings call, Upload VR reports.
EssilorLuxottica, Ray-Ban's parent company, has a stronghold in the global eyewear market and owns other popular brands like Oakley.
Grassi expressed satisfaction with the performance of Ray-Ban Meta glasses, noting their popularity in the US and across the EMEA region. The higher price point of $300 for the Meta glasses, compared to the average $150-$200 range for regular Ray-Ban products, indicates that consumers are willing to pay more for smart glasses that combine style and functionality.
While Ray-Ban Meta glasses offer basic smart features, Meta has consistently added new capabilities like WhatsApp voice messages and QR code scanning. Future updates are expected to include live translation and Spotify (NYSE: SPOT) controls.
Despite the absence of advanced AI features in Europe due to regulatory delays, these glasses have still outperformed traditional Ray-Ban models in these regions, driving significant sales for the company.
While Meta's smart glasses offer speakers and cameras that have attracted early adopters, the AI capabilities-including live translation and Spotify controls-are not yet available in Europe.
TechCrunch reports that Meta attributes this delay to ongoing uncertainty from European regulators.
Despite the lack of AI integration, Ray-Ban Meta glasses have exceeded sales expectations, signaling consumers are already drawn to the current smart functionality.
The success of the Ray-Ban Meta glasses has likely contributed to Meta's decision to extend its partnership with EssilorLuxottica into the 2030s.
JMP Securities' Andrew Boone flagged growing confidence in Meta's hardware and XR (extended reality) roadmap at Meta Connect. He noted Meta's strides in augmented reality (AR) hardware over the past five years and suggested that Orion could become the next major consumer computing platform.
Boone emphasized that Meta's platform could become twice as profitable if it controlled its infrastructure, similar to Microsoft Corp (NASDAQ: MSFT) and Apple Inc (NASDAQ: AAPL).
He also highlighted the potential of Meta's Llama models to capture a portion of search queries. The analyst expects Meta's continued focus on lowering hardware prices will boost consumer adoption.
Meta Platforms stock has increased over 83% in the last 12 months. Investors can gain exposure to the stock through the iShares S&P 500 Growth ETF (NYSE: IVW) and The Communication Services Select Sector SPDR Fund (NYSE: XLC).
Price Action: META stock is up 0.50% at $578.03 at last check Tuesday.