This week, smart glasses manufacturer XREAL announced a successful funding round of $60 million in a strategic round to launch the firm as a competitor to the Apple Vision Pro.
The spatial computing gears are turning. This Friday, US customers will get hands-on experience with Vision Pro. While optimism is high, so is the price point.
The Vision Pro headset clocks in at $3,599 for US customers, perhaps a price point too high for many – that’s where XREAL and others step in.
With such a monumental firm entering the XR space, more eyes than ever will be aimed towards AR/VR/MR hardware and software, perhaps namely those at a lower price point.
XREAL’s latest Air 2 Ultra AR smartglasses achieve a similar outcome to the upcoming Vision Pro but at a far lower price of $699. Moreover, XREAL’s product is available near worldwide, unlike the Vision Pro.
Potentially, XREAL could attract a crowd of first-time XR adopters who want to enter the space based on Apple’s splash but can’t afford to risk the high price point. Therefore, it attracts potential customers to XREAL’s more accessible solution.
The latest funding round now brings XREAL’s lifetime fundraising to roughly $300 million with a hefty lineup of backers, including Alibaba, Nio Capital, Sequoia, Kuaishou, and Gentle Monster.
Chi Xu, CEO and Co-founder of XREAL stated that the latest strategic fundraising round reinforces the firm’s position in the global AR market and “skyrockets” XREAL expansion goals while also “demonstrating strong commitment from our trusted fundraising partners.”
Xu also added:
As the first unicorn in AR glasses, we see where the AR industry is heading and are honored to continue leading and teaming with the industry’s finest today, through the launch of XREAL Air 2 Ultra in the spring, and beyond. Developer, partner and retailer conversations are underway now to make XREAL Air 2 Ultra’s first year the biggest in AR history.
XREAL states that the new $60 million of funding will go towards research and development and factory expansion. This goal will allow XREAL to expand production of its AR smart glasses product ready for 2025 onwards, readying the firm for a new wave of potential customers.
XREAL: Captial Expansion, Following Shipment Success
The news comes after XREAL claimed to have shipped roughly 350,000 pairs of AR glasses since the company’s 2017 inception. Moreover, IDC, a market watcher, has stated that XREAL was responsible for 51% of all AR glasses shipped in Q3 of last year, making it the leading player in the industry – which showcases XREAL’s influence on the smart glasses market ahead of the Vision Pro’s debut.
Chi Xu has explained that this shipment number is a crucial milestone in revolutionizing people’s day-to-day use cases such as video games, movies, TV shows, in-car entertainment, displays, and work on their desks or on the go.
Xu also added at the time:
Having secured a major foothold in the global wearable display market, XREAL is now in a stronger position to embrace market momentum and reaffirm its position as the leading, best-selling AR glasses and spatial computing brand in the world today, who’s trajectory is outpacing the rest of the industry combined.
XREAL Air 2 Ultra Smart Glasses
At the 2024 Consumer Electronics Show (CES) in Las Vegas, XREAL showcased its latest product, the Air 2 Ultra, and shared success stories in the XR device market.
XREAL officially launched the Air 2 Ultra at the event, boasting that it is an affordable way to experience spatial computing. The company now accepts pre-orders and plans to ship the product in March, while CES visitors get an opportunity to get hands-on with the product.
Chi Xu explained, “with XREAL Air 2 Ultra, we’re empowering developers around the world by providing an affordable and lightweight solution that allows them to jump into the exciting world of spatial computing and create the next generation of mixed reality experiences.”
Additionally, XREAL held a showcase at CES 2024, highlighting its wide range of partnerships that helped the company scale its AR smart glasses to enterprise clients worldwide and demonstrating how XR technology is influencing various industries.
XREAL highlighted collaborations with Qualcomm Technologies Inc., BMW Group, Nio, Quintar, and Forma Vision as part of its partner spotlight. Moreover, Qualcomm and XREAL are collaborating to create immersive applications with AR, AI, and 5G technologies over multiple years.
Peng Jin, the Co-founder of XREAL, said:
As the world’s leading designer and manufacturer of AR glasses, we seek out companies who share our vision for a future where the digital and physical world’s mesh, where all experiences, from enterprise to entertainment, from automotive to recreational, can empower people to experience the world in new and creative ways. Our CES 2024 partners are leading in their respective fields, just as XREAL is the leader in spatial computing and AR glasses. I can’t wait for CES attendees to experience everything we’ve created together at CES 2024, and what will come in the future.
Will XREAL continue its momentum as significant firms like Apple, Google, Samsung, LG, and others enter the space? With XR’s mainstream moment just around the corner, time will tell if the famed XR firm can keep its head above water.
