The technology landscape is witnessing a seismic shift as artificial intelligence (AI) becomes increasingly integrated into consumer electronics. Major tech companies are gearing up to launch AI-powered devices that promise to revolutionize user experiences significantly. Among these emerging products, smart glasses equipped with AI functionalities stand out as a potent example of how technology can enhance daily life. In recent months, reports indicate that prominent players like Xiaomi and Samsung are preparing to unveil their versions of AI glasses, positioning them as direct competitors to products like the Meta Ray-Ban.

Xiaomi is reportedly set to release its AI glasses in the second quarter of 2025. This latest innovation is anticipated to offer an array of features, including audio and camera modules that leverage AI for a more interactive and augmented reality experience. Meanwhile, Samsung is also entering the fray, reportedly preparing its own AI smart glasses for launch in the third quarter of 2025. The company's glasses will incorporate AR capabilities and utilize the Gemini model, with initial production plans set at 500,000 units. This burgeoning sector signifies a newly emerging market trend where AI capabilities are enabling the rise of smart devices, reminiscent of the transformation seen in the smartphone industry.

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According to recent insights from Wellsen XR Research, the market is diversifying, with brand manufacturers focusing on developing bespoke hardware integrated with advanced AI models, while white-label manufacturers are opting for standardized solutions enhanced by third-party models. This dual market dynamic suggests a competition for different segments within the consumer landscape, creating varied offerings suited to diverse consumer needs.

Interestingly, the adoption of AI applications varies significantly between markets. In the United States, there has been a notable indication that the tech sector is leaning heavily towards business-to-business (B2B) scenarios. Commercial applications for AI are taking precedence in the American stock market, contrary to trends witnessed in other regions such as A-shares, where the consumer market is becoming the focal point. For instance, AI technologies embedded in eyewear products like the Ray-Ban Stories, a joint venture with Meta, have found traction due to their features like camera functionality that can take photos, recognize surroundings, and translate audio—all while interacting with user voice commands. Such products have seen a surge in sales attributed to seamless user experiences.

However, not all products have enjoyed similar success. For example, the Ola Bean headphones, launched with modest fanfare, have failed to penetrate the market despite the buzz surrounding AI-enhanced functionalities. With only over 3,000 units sold on major e-commerce platforms, the experience has been underwhelming, highlighting that branding products with AI capabilities alone does not guarantee success. Instead, user experience and practical application remain paramount—AI devices must solve genuine problems to thrive in a competitive marketplace.

In light of this evolving landscape, many upcoming releases have sparked eagerly anticipated discussions. A closer look at brands reveals a pattern: AR-focused companies like Rokid and INMO are gearing up for launches alongside smartphone manufacturers hoping to capture market share. Rokid recently unveiled new products that extend beyond traditional AI functionalities, integrating payment solutions with support from Alipay, allowing users to simply scan using their glasses and pay using natural language commands. Similarly, INMO's new AI + AR smart glasses are poised to capture consumer interest, as they embody the next generation of interactive technology.

Within this context, System on Chip (SoC) technology is primarily shaping the experience of AI terminals. In consumer-facing models, there's an observed need for practicality and cost-effectiveness. The hardware in consumer devices won’t serve merely as computing power but must satisfy targeted segment needs, hence requiring SoC designs to prioritize low-energy consumption and connectivity, along with processing capabilities necessary for real-world use cases. For AI glasses, the current leading SoC options range from Qualcomm's XR/AR series chips to adaptations of smartwatch architectures, as well as combinations of modular setups more accurately tailored for diverse user environments.

Looking towards the future of AI terminals, several critical insights emerge. First, the transformation being undertaken is not merely incremental but a holistic step towards higher value creations. Unlike previous consumer electronics innovations like true wireless stereo headphones (TWS), AI terminals necessitate a systemic approach, requiring a comprehensive ecosystem that harmonizes applications, AI models, and interactive modalities. Proponents believe that as user experiences mature, offering genuine problem-solving capabilities will cultivate greater willingness among consumers to invest in AI technologies. The pricing of AI devices will reflect a combination of hardware costs plus the user experience, creating added value opportunities that can boost profitability for manufacturers.

Enhanced interactivity will play a pivotal role in the acceptance and utility of these futuristic devices. Existing AI use cases emphasize voice-based interfaces, freeing users' hands from cumbersome interactions, while future iterations are expected to incorporate gesture recognition functionalities. What does this signify? It suggests that smartphones might evolve into personalized computing terminals, allowing users to engage via natural voice and visual commands. The expectation is clear: AI glasses could provide real-time processing capabilities through built-in cameras—capturing end-user experiences seamlessly—and microphones for an effortless command, effectively redesigning interaction paradigms.

The ecosystem surrounding AI devices mirrors the evolution of the smartphone market some ten years ago. The introduction of 4G technology catalyzed a wave of new demands driven by mobile internet adoption. Traditional leaders like domestic mobile brands once dubbed “China Cool Union” faced formidable competition from new entrants like OPPO, vivo, and Xiaomi. In the ensuing years, the landscape saw several exits by legacy manufacturers such as Nokia and LeEco, paving the way for industry stabilization. We seem to be on the brink of a similar transformation era, as AI technologies propel the next wave of smart consumer electronics, foreshadowing a dual market structure: branded firms developing their hardware alongside expansive AI models, while other manufacturers leverage standard solutions bolstered by third-party enhancements.