Mark Zuckerberg Once Predicted That This Technology Would Replace Your Phone — A Decade Later, How Far Is Meta From Delivering On A 'More Natural' Future - Alphabet (NASDAQ:GOOG), Apple (NASDAQ:AAPL)

Meta Platforms, Inc. META CEO Mark Zuckerberg once shared his bold vision, indicating that virtual and augmented reality would one day replace mobile phones as the dominant computing platform. Now, nearly a decade later, how close is Meta to achieving that future?

What Happened: In a 2015 interview at the Vanity Fair New Establishment Summit, Zuckerberg, after Facebook’s over $2 billion acquisition of Oculus.

When asked why he decided to buy the company, Zuckerberg said, “Every 10 or 15 years, there's a new computer platform that comes along," referring to mainframes, PCs, the web, mobile and then the virtual and augmented reality.

He described the transition from traditional computing systems, where users needed a degree to operate them, to the more user-friendly and natural mobile platform.

However, Zuckerberg believed mobile devices, while revolutionary, are not the ultimate endpoint. The future, according to him, lies in the next major computing platform: one that integrates directly with vision.

The Meta CEO stressed that the future of technology would be about capturing real-life moments in a "more natural" and immersive way, such as sharing experiences with loved ones through virtual reality rather than traditional still photos or 2D videos.

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Why It's Important: A decade after Zuckerberg's initial prediction, Meta's investment in virtual and augmented reality, particularly through its Oculus headsets (now branded Meta Quest), has been a central focus of the company's strategy.

However, despite substantial investments, Meta still faces significant hurdles in delivering on this “more natural” computing experience. In fact, it is widely believed that the tech giant sells Quest headsets at a loss, according to TechCrunch.

In January, Meta discontinued its $999 Quest Pro headset after it failed to gain traction, and now redirects customers to the more affordable Meta Quest 3, which sells for $499.99.

At the same time, in October 2024, it was reported that Ray-Ban and Meta's smart glasses became the top-selling product in 60% of Ray-Ban stores across Europe, the Middle East and Africa (EMEA).

The current Meta Ray-Ban smart glasses don't include a built-in display — instead, they offer voice commands, a camera, and speakers for calls and media playback. However, reports have emerged that Meta is working on a third-generation version that could feature an integrated visual display.

Last year, Meta also showcased its prototype Orion AR headset, designed to blend digital elements seamlessly into the real world. Meta also launched the $299 Quest 3S, marketing it as an affordable option for gaming, workouts and watching movies in VR.

In its latest first-quarter earnings report, the company revealed that Reality Labs, its division responsible for products like the Quest VR headsets and Ray-Ban Meta Smart Glasses, generated $412 million in revenue, slightly down from $440 million in the same period in 2024.

Despite this revenue, the segment continued to operate at a significant loss, reporting an operating loss of $4.2 billion in the first quarter, which widened from a loss of $3.8 billion a year earlier.

Meanwhile, other major players are pushing into the same space. Apple Inc.'s AAPL Vision Pro, which hit the U.S. market in February 2024 with a hefty starting price of $3,499. Alphabet Inc.'s GOOG GOOGL Google and Samsung Electronics Co. SSNLF have also teamed up on a mixed-reality headset called Project Moohan.

Benzinga’s Edge Stock Rankings indicate that Meta's shares continue to trend upward over the short, medium and long term. More detailed performance insights can be found here.