While all eyes are on the weekend for the launch of the Vision Pro, a small Chinese startup specializing in augmented reality glasses is expanding its lead. Xreal has closed a new round of financing, allowing it to be valued at $1 billion.
Thin, light and socially acceptable augmented reality glasses do not yet exist. But the Xreal models perhaps come closest, especially the latest version unveiled during CES in early January. The Air 2 Ultra is a pretty massive device, but much smaller than a Vision Pro or a Quest 3.
Everything for augmented reality
The micro-OLED displays display 1080p per eye, and it all works with a Snapdragon XR2+ Gen 2 chip at a reasonable price of $799. The only but big limitation is that you have to connect your smartphone, which is responsible for extensive calculations… Which is no worse than connecting an external battery!
With his connected glasses, Xreal walks across the Vision Pro flowerbeds
While the competition offers mixed reality (augmented reality and virtual reality experiences), Xreal relies entirely on augmented reality, i.e. the overlay of digital images with the user's real surroundings. The manufacturer's various AR glasses models also accounted for half of this (very small) market in the third quarter of 2023. In the mixed reality sector, Xreal is content with a market share of 4%.
The Beijing-based company is given free rein to expand its production capacities. In fact, the company has raised $60 million after a new round of funding, valuing it at $1 billion. Xreal can produce 500,000 to 1 million units in 2024 and this additional profit will make it possible produce 2 million units in 2025.
Chi Xu, the boss of Xreal, wants to move forward quickly and take advantage of the advantage over the competition. He knows that his company will one day clash with Apple in the AR glasses segment. “I think we are three to five years ahead [Apple] in augmented reality,” he told Bloomberg. “But they are catching up. So we have to keep up the pace and push ourselves to our limits.”
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Source: Bloomberg