Tianfeng Securities analyst Ming-Chi Kuo wrote that Meta’s headset (Metaverse) hardware business’s losses due to weak demand may be higher than market consensus. Ming-Chi Kuo’s latest survey points out that Meta’s headset/metaverse hardware shipments continue to decline significantly, so downsizing the headset/metaverse business will have limited help in improving losses.
Quest3's initial shipment estimate was to reach more than 7 million units in 2H23. However, due to expected weak demand, the current shipment estimate for the second half of this year is 2-2.5 million units, and shipments in 2024 will be about 1 million units.
Quest's shipments will further decline significantly by about 50% YoY to 3.5 million units in 2023, and shipments in 2024 do not rule out the possibility of a YoY decline.
Even though the new Ray-Ban Meta Smart Glasses use improved specifications/functions as a selling point, the current lifetime shipment estimate is only about 1.5 million units, which is lower than the original shipment target of 2 million units for the previous generation Ray-Ban Stories Smart Glasses. However, it is worth noting that the final shipment volume of Ray-BanStories SmartGlasses was only about 300,000-400,000 units. The sales results were significantly lower than expected, and the actual active users were even lower than 50,000.