EssilorLuxottica SA (EU:EL) shares moved lower on Wednesday after Google LLC (NASDAQ:GOOG) and Samsung Electronics Co., Ltd. (USOTC:SSNHZ) introduced rival artificial intelligence glasses during Google’s annual I/O conference in Mountain View, California, increasing pressure in a fast-growing market currently dominated by Meta Platforms, Inc. (NASDAQ:META) and its partnership with EssilorLuxottica.
Samsung unveils new AI glasses concepts
Samsung revealed two AI-powered smart glasses concepts developed alongside Google. One design was created in collaboration with fashion label Gentle Monster, while the second was developed with Warby Parker Inc..
The presentation marked the first public unveiling of finished product designs after only prototype demonstrations were shown at last year’s conference.
The devices run on Google’s Gemini AI platform and Android XR operating system. They feature cameras positioned on both sides of the frame, together with integrated microphones and speakers designed to support functions including navigation, live translation and restaurant recommendations without requiring connection to a smartphone.
Samsung said the products are expected to launch following its Galaxy Unpacked event scheduled in London in July.
Citi sees Meta and EssilorLuxottica retaining an advantage
Analysts at Citigroup Inc. said:
“EL shares have significantly underperformed due to concerns about competitive threats in the smart glasses segment; overall, we believe the information disclosed overnight reinforces our view that EL/META should remain an important player in this area, given their first-mover advantage, positioning in fashion and recognized brands, and distribution network compared to WRBY/GentleMonster.”
Citi also argued that Google’s glasses currently lack sufficient “fashion appeal” and noted that no display-integrated product is expected in the near term because of challenges linked to incorporating prescription lenses.
Smart glasses market expands rapidly
The Ray-Ban Meta smart glasses range, produced through the partnership between Meta and EssilorLuxottica, currently leads the AI glasses segment.
According to research firm Omdia, global smart glasses shipments surged 435% last year and are expected to rise a further 322% this year to approximately 8.7 million units.
Chinese manufacturers, including Xiaomi Corporation, currently hold only small single-digit shares of the market.
Samsung has positioned its latest AI glasses initiative as part of a wider strategy aimed at increasing its installed base of AI-enabled devices from 400 million units last year to 800 million units during 2026.
Meta also introduced two new products in South Korea one day before Google’s I/O announcement.
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