NEWS  Headset  January 31, 2024  Reading time: 2 Minute(s)

Max (RS editor)

Earlier this month, Chinese startup XReal took a significant leap in the augmented reality (AR) market with the unveiling of its latest innovation: the Air 2 Ultra. Positioned as a formidable competitor to Apple's high-end Vision Pro devices, the Air 2 Ultra promises to blend the virtual realm seamlessly with users' physical surroundings at a more accessible price point.

Priced at $699 for pre-orders, the Air 2 Ultra introduces AR glasses that project a virtual screen, displaying notifications and videos directly onto the wearer's line of vision. XReal aims to democratize advanced wearable technology, offering consumers an affordable alternative to the premium options dominating the market.

In a bold statement accompanying the January press release, Chi Xu, CEO of XReal, emphasized the company's commitment to making 6DoF (six degrees of freedom) glasses both affordable and practical for everyday use.

XReal's strategic pricing places it in direct competition not only with Apple but also with other players like Meta, whose Quest 3 goggles start at $499. By prioritizing accessibility without compromising on functionality, XReal aims to capture a significant share of the AR market, leveraging its early mover advantage and innovative approach.

Despite challenges from established tech giants, XReal remains confident in its trajectory. With an anticipated production of 50,000 units this year and plans to raise $60 million from undisclosed partners, the company is poised for rapid growth. This infusion of capital will bolster manufacturing capabilities and fuel further research and development, positioning XReal as a formidable contender in the AR landscape.

XReal's success is underscored by its impressive market share, accounting for nearly half of all AR device sales in the third quarter of the previous year, according to data from IDC. Xu asserts that XReal's AR capabilities outpace those of industry giants like Apple, positioning the company as a leader in innovation and technological advancement.

Looking ahead, XReal forecasts exponential growth, with production capacity expected to double within the next two years. Revenue projections indicate a potential increase from $100 to $150 million in 2024 to $200 to $300 million by 2025. This ambitious outlook reflects XReal's confidence in its product offerings and its ability to meet the evolving demands of the AR market.

While XReal remains focused on AR, it diverges from competitors by eschewing fully immersive virtual reality features in its glasses. Instead, the company emphasizes enhancing AR experiences, leveraging its technological edge to push boundaries and stay ahead of the competition.

 IMAGES CREDITS: XREAL