Ray-Ban Meta: Pricing issue apparently causes tensions

According to insiders, Meta and EssilorLuxottica have differences in pricing and marketing of their smart glasses. Considering rising demand and growing competition, heated debates are reportedly taking place internally, reflecting the different priorities of the two companies. This is reported by Bloomberg, citing several people familiar with the matter.

Specific examples from the report illustrate the differences in pricing: For instance, Meta wanted to include the smart glasses in Black Friday promotions in 2023, but EssilorLuxottica rejected early discounts. Even with the Ray-Ban Stories from 2021, Mark Zuckerberg had suggested an entry price of around 250 US dollars, but ultimately a compromise of 300 US dollars was agreed upon.

One of the sources speaks of a “tug-of-war,” which however never escalated. Both sides continue to seek a common course, and the cooperation is considered not to be endangered. Meta and EssilorLuxottica did not deny the report but emphasized the success of their partnership and described the cooperation as stronger than ever.

Last year, Meta acquired a 3 percent stake in EssilorLuxottica. A year earlier, both companies had extended their partnership until the 2030s.

Different Priorities

Mark Zuckerberg hopes that AI and AR glasses will become the next computer platform and that Meta, thanks to a leading position, can reduce its dependence on Google's and Apple's smartphone ecosystems. “It's hard to imagine a world in several years where most glasses that people wear aren't AI glasses,” Zuckerberg recently propagated. According to insiders, lower prices should accelerate the adoption of Meta's smart glasses before Google and Apple enter the market with their products this year and next.

Meanwhile, the world's largest eyewear manufacturer, EssilorLuxottica, has other interests: as a luxury group, it relies on high margins, while smart glasses, due to expensive electronics and production expansion, are reducing profitability. In 2025, the adjusted gross margin decreased by 2.6 percentage points to 60.9 percent, with smart glasses being responsible for the majority of the decline, according to the company. This is evident from the latest quarterly report.

Last year, the two companies sold 7 million Ray-Ban Meta glasses, after around 2 million units were sold between October 2023 and the end of 2024. The significant increase is likely also due to Meta launching several new models, including two from Oakley, in 2025. At the beginning of the year, Bloomberg reported that partners are considering increasing production capacity to 20 million units per year.

According to the current report, the companies are negotiating with Prada, a long-term licensing partner of EssilorLuxottica, about smart glasses of the luxury brand. An agreement could be reached later this year.

(wpl)