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Meta’s Reality Labs unit, focused on augmented and virtual reality technologies, reported a substantial operating loss of $4.48 billion in the second quarter. Despite this, the loss was slightly lower than the $4.55 billion predicted by analysts polled by StreetAccount. Since late 2020, the Reality Labs division has accumulated around $50 billion in losses, reflecting CEO Mark Zuckerberg’s significant investment in developing the hardware and software for what he envisions as the next era of personal computing.
The unit’s revenue, primarily from the Quest family of VR headsets and Ray-Ban Meta smart glasses, reached $353 million. This marks a 28% increase from $276 million in the same period last year, although it fell short of analysts’ expectations of $371 million.
In September, Meta launched the Quest 3 VR headset, priced starting at $499. This release came just before Apple’s introduction of the Vision Pro VR and AR headset, which starts at $3,500. Apple’s Vision Pro was reported to begin deliveries in China in June, with a retail price starting at 29,999 yuan (approximately $4,128).
As the VR market continues to develop, Meta has been increasingly promoting its smart glasses, developed in collaboration with Ray-Ban. Advances in artificial intelligence and large language models have enhanced the capabilities of these smart glasses, according to Zuckerberg. In July, Francesco Milleri, CEO of Ray-Ban’s parent company EssilorLuxottica, revealed that Meta plans to become a shareholder in the European eyewear maker, expanding on their partnership established in 2020.
Meta’s second generation of smart glasses, priced starting at $299, was launched in October. Zuckerberg has expressed optimism about the potential market for fashionable AI glasses without a display, suggesting a growing interest in this emerging technology.