Meta will release smart glasses under the Prada brand - CNBC. Why it matters.

Meta and EssilorLuxottica, which produce smart glasses with AI under the Ray-Ban brand, are planning to release versions under the Prada brand, as well as Oakley - this company specializes in sports and high-tech optics. The new gadgets will be positioned just as sporty. Prada's participation marks Meta's first step in entering the luxury fashion segment with wearable devices, notes CNBC.  

According to CNBC, EssilorLuxottica and Prada's agreement - to produce eyewear under the luxury company's brands, which the parties recently renewed - will be used to launch a line of smart gadgets with Meta. This will be the tech giant's first attempt to enter the premium segment of fashion brands, the channel noted. 

Prada glasses, according to former Meta employees, may prove particularly suitable for wearable electronics, as many of the brand's models feature wide earpieces, CNBC reports. This will provide space for the necessary components, including microphones and chips.

When the release will be officially announced is not yet clear, the channel points out.

The Oakley-branded Meta hinted at the release of a new model on Monday, launching an Instagram account "Oakley | Meta" with the profile description, "The next evolution coming June 20," CNBC noted. According to its data, the gadget will target athletes. Meta is looking to attract active users after noticing that owners of Ray-Ban smartglasses often use them to record video while playing tennis, skiing and the like.

A source told the TV station that the Oakley sunglasses will cost around $360. The first version is expected to have similar technology to the Ray-Ban Meta line, released in 2023, but will be better weatherproofed. 

The partnership between EssilorLuxottica and Meta began in 2019, and in 2023, the second generation of Ray-Ban Meta glasses was released. This model is equipped with Meta AI voice assistant and, when connected to a smartphone, allows, for example, to recognize city landmarks, find recipes by type of ingredients, record and send voice messages in WhatsApp and Messenger. The company wants to introduce the third, larger generation in time for the upcoming holiday season in the fourth quarter. The new model is expected to feature a small display in one of the lenses. 

The head of EssilorLuxottica, Francesco Milleri, said in February that the companies have sold 2 million pairs of second-generation gadgets since 2023 and plan to increase production to 10 million units per year by the end of 2026, CNBC writes.

According to the calculations calculations research portal Counterpoint, published in February, the global smartglasses market grew by 210% last year, its main driver being Meta devices, whose share exceeded half of all shipments. This year, it is forecast to expand by 60% and maintain a steady compound annual growth rate of more than 60% through 2029. The key drivers will be the addition of smartglass usage scenarios, a variety of price segments, and a rapidly expanding ecosystem of manufacturers.

Counterpoint predicted that 2025 will be the year of "the battle of hundreds of smart glasses models," and competition will reach a whole new level.

In May, Alphabet announced a $150 million partnership with small-cap company Warby Parker to co-produce glasses integrating Google's Gemini voice assistant. And Bloomberg's sources reported that Apple is developing smart glasses without augmented reality and expects to release the device by 2026 or 2027.

Last week, Snap announced that it is preparing to release the sixth generation of glasses under its new Specs brand. According to the company, the new product will arrive in 2026, will support augmented reality technology and will be smaller and lighter than previous models. Among those who are also going to enter this market, Counterpoint names Xiaomi, Samsung, Baidu and ByteDance.

Meta's Reality Labs division is responsible for the development and production of smartglasses. In its latest quarterly report, the company said the division had revenue of $412 million and an operating loss of $4.2 billion. The tech giant is looking at ways to make it profitable, including considering building a tactical helmet with AI for the Pentagon.