Meta’s XR division, Reality Labs, surpasses 2024 forecasts with “massive sales growth in wearables” and a strong Quest brand presence
According to Business Insider, Meta Reality Labs, which leads XR research and development, has experienced significant sales growth, particularly in wearables, as stated by Meta’s CTO, Andrew Bosworth, in an internal memo.
Meta Reality Labs develops a wide range of XR technologies, but nearly 50% of its budget is dedicated to researching AR glasses – an industry that has yet to be even established. This heavy investment, along with other research projects within Reality Labs, explains why Meta’s earnings reports consistently show billions in expenses while revenue remains in the millions or, more recently, around a billion. While some may see this as a “loss,” Meta views it as a long-term investment expected to become profitable sometime in the 2030s.
While Meta may be a decade or more away from profitability, the company can still take pride in its latest achievement in 2024. In a leaked internal memo, Meta’s CTO, Andrew Bosworth, shared some key insights. Here are a few quotes:
“2024 was a pivotal year for Reality Labs and positioned us for greatness in 2025,”
“The team beat nearly all of last year’s aggressive sales and user goals, growing RL sales >40% YoY overall”
“We are seeing massive sales growth in wearables and the Quest brand has never been stronger.”
While Bosworth’s references to massive sales growth likely pertain mainly to the wearables market, particularly Meta Ray-Ban glasses, the growing recognition and strength of the Quest brand have also been acknowledged.
Meta Ray-Ban glasses have been a huge success, surpassing Meta’s expectations. The company reportedly plans to release a premium version this year, priced around $1,000. This new model will include a small display for notifications and general information, with potential additional upgrades, though leaks have not specified the details.
The Meta Quest 3S, released in October 2024, likely played a key role in Reality Labs’ strong sales. Priced at $300, it retains most features of the more expensive Quest 3. On Christmas Day 2024, the Meta Horizon app – required to set up the headset – topped the App Store download charts.
The XR industry is steadily growing, and the rise in sales shows no signs of slowing down. Mixed reality headsets are becoming increasingly useful, and while price and weight remain challenges, companies are actively working to overcome them. For example, Meta reportedly plans to release a sub-110g mixed reality headset resembling bulky glasses, sometime in 2027. Additionally, we are approaching the launch of the world’s first consumer-grade true AR glasses, expected from Meta around the same year.
