Cathie Wood’s Ark Invest analyst Andrew Kim suggested that the rise of Mark Zuckerberg-led Meta Platforms Inc.’s META Ray-Ban smart glasses, along with other AI consumer hardware products, could potentially disrupt the long-standing smartphone duopoly.
What Happened: In a newsletter on Tuesday, Kim highlighted the impressive fourth-quarter results of Meta, including a 22% year-over-year revenue growth and a 21% increase in operating margin. The company also projected a further 25% revenue growth for the current quarter.
He pointed out that Meta Platforms’ management has identified smart glasses and generative AI as the next consumer hardware/software paradigm in a post-smartphone world. "According to Mark Zuckerberg, sales of the Ray-Ban Meta smart glasses have been higher than expected."
See Also: AI Revolution Ignited? Ark Invest Predicts 75% Annual Drop In Training Costs By 2030
According to the analyst, the proliferation of AI hardware product launches, including the Ray-Ban Meta smart glasses, Humane Ai Pin, Tab, and Rabbit R1, indicates that next-generation consumer hardware is fragmenting, similar to the early days of personal computers and smartphones.
He also hinted at the potential disruption of the long-standing smartphone duopoly by new AI consumer hardware.
"Given the recent proliferation of AI hardware product launches—such as the Humane Ai Pin, Tab, Rabbit R1, and the Ray-Ban Meta smart glasses—next gen consumer hardware seems to be fragmenting much like personal computers and smartphones did in their early days," he stated.
Kim added, "Given mixed reviews of Apple's recently launched Vision Pro as well as recent developer outrage at Apple's policies, new AI consumer hardware could be in the process of disrupting the longstanding smartphone duopoly."
Why It Matters: The rise of AI-powered consumer hardware has been a significant trend in the tech industry. Companies like NVIDIA and Intel INTC have been making strides in the AI chip market, while Apple Inc. AAPL has also entered the space with its Vision Pro mixed-reality headset.
Moreover, the Humane AI Pin, which was named one of the “Best Inventions of 2023” by Time Magazine, and the Amazon Echo Frames have also been significant developments in the AI-powered consumer hardware space.
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