Xreal has unveiled its latest iteration of augmented reality (AR) glasses, the Xreal One Series, in a strategic move to compete with industry giants such as Meta and Snap. This launch is particularly significant as it is backed by the Chinese e-commerce titan, Alibaba, and aims to capitalize on the burgeoning interest in AR technology.

The Xreal One Series is a milestone in the company's product line, featuring the X1 chip, which is Xreal's inaugural self-engineered processor specifically for its AR glasses. This innovation significantly enhances the device's functionality and represents a substantial advancement in the field of consumer AR glasses.

The Xreal One Series boasts the ability for users to seamlessly connect their glasses to various devices like smartphones, laptops, or gaming consoles, and enjoy the content on a vast digital display. This is a notable improvement over the previous generation, which relied on a separate device called the Beam for device connections. The integration of the X1 chip has rendered the Beam obsolete, streamlining the user experience.

"The introduction of the X1 chip represents the most significant upgrade in Xreal's history and arguably the most substantial leap for the consumer AR glasses industry as a whole," stated Chi Xu, Xreal's CEO, in an interview. The development of the X1 chip, a three-year endeavor, is seen by Xu as a means to expand the glasses' capabilities and set them apart from the competition. "We recognized the need to create a chip that would redefine the features of AR glasses," Xu explained.

Xreal is a major player in the AR glasses market, yet it faces fierce competition from companies like Snap, which introduced a new version of its Spectacles in September, and Meta's ongoing development of the Meta Ray-Ban product line. Additionally,reported this year that Qualcomm is collaborating with Google and Samsung on a new line of glasses. Xreal is among the companies that are placing their bets on glasses, rather than bulky headsets like Apple's Vision Pro or Meta Quest, as the future of mass-market AR solutions.

"People are starting to realize that traditional headsets are not the ideal form factor; we need to transition to lighter, more compact glasses," Xu remarked. "However, the challenge lies in pushing the boundaries to deliver a headset-like experience within a much smaller and sleeker design."

The Xreal One and Xreal One Pro are priced starting at $499 and $599, respectively. Augmented reality, which involves overlaying digital content onto the real world, has been a hot topic in recent years. Despite the hype, the market has not grown as rapidly as many had anticipated. Large headsets have often been deemed too costly or uncomfortable, prompting companies like Xreal and Meta to focus on enhancing the appeal of AR glasses experiences.

There remains a significant gap in content and compelling use cases for AR glasses, an issue that Xu believes must be addressed before the product category can reach a broader audience. The CEO emphasized that this begins with high-quality hardware. "To improve the experience, we need a platform and an ecosystem, as we currently lack content. However, to excite developers and encourage them to create, we must first have excellent hardware," Xu told.

Xu anticipates that the company will sell around 500,000 units of its previous products in 2025, which would nearly double the sales figure from this year. The Xreal One Series, with its groundbreaking X1 chip, is poised to be a key driver in achieving this ambitious sales target and solidifying Xreal's position in the competitive AR glasses market.