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New smart glasses will feature small display for basic

functions

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Analysts expect device to retail for about $800

By Aditya Soni and Echo Wang

Sept 16 (Reuters) - Meta is expected to double

down on AI-powered augmented reality products with new smart

glasses at its annual Connect event on Wednesday, even as the

company faces scrutiny over its handling of child safety on its

social media platforms.

At its Menlo Park, California-based headquarters, CEO Mark

Zuckerberg is expected to unveil Meta's first consumer-ready

smart glasses with a built-in display, a device that analysts

predicted will retail for about $800.

Internally codenamed "Hypernova," the glasses are expected

to be launched as "Celeste," analysts said, and will feature a

small digital display in the right lens for basic functions such

as notifications.

The new glasses are the latest in Meta's effort to stay

relevant in the AI race, where it is lagging rivals such as

OpenAI and Alphabet's Google, but analysts said the

device's hefty price tag could deter buyers.

The product will likely be much less advanced than the

"Orion" prototype glasses that Meta showcased at last year's

event, a device that Zuckerberg called "the time machine to the

future." The company did not immediately respond to an emailed

request for comment on the new glasses.

Meta, which expects to launch Orion in 2027, currently

offers two lines of glasses - in collaboration with Ray Ban and

Oakley - that incorporate artificial intelligence features,

cameras, hands-free control and livestreaming to Meta's social

media platforms, Facebook and Instagram.

Zuckerberg, who has poured more than $60 billion since 2020

into Meta's augmented reality unit, has said that smart glasses

will be the company's main conduit to integrate

superintelligence - a hypothetical concept where AI surpasses

human intelligence in every possible way - into everyday human

lives.

In the effort to catch up in AI, Zuckerberg has sparked

a billion-dollar talent war, aggressively poaching researchers

from rivals, while whistleblowers have said Meta was putting

profit over user safety.

Reuters reported last month that Meta's AI policies allowed

its chatbots to engage children in provocative conversations

about sex and race, and whistleblowers said earlier this month

Meta's researchers were told not to investigate harms to

children using its virtual reality technology so that the

company could claim ignorance of the problem.

Meta told Reuters previously that it has removed portions in

its policies that stated it was permissible for chatbots to

engage in romantic roleplay with children.

BIG TICKET PRICE MAY DETER BUYERS

At the two-day Connect conference, the company is also

expected to launch its first wristband that allows users to

control the new glasses with hand gestures. It is also expected

to show an updated Ray-Ban line that comes with better cameras

and battery life and supports new AI features, analysts said.

Meta is the rare Big Tech company to gain consumer traction

in smart glasses, selling about two million pairs of the Ray-Ban

line it makes with EssilorLuxottica since 2023, in a

market where rival bets such as Google Glasses have stumbled.

But the unit has posted billions in losses.

CNBC has reported the Hypernova glasses could feature Prada

branding, as the Italian label is known for thick

frames and arms that could house many of the necessary

components. Prada did not respond immediately to an emailed

request for comment.

Still, analysts said the expected $800 sticker price for the

glasses - much higher than the $299 starting price for the

Ray-Ban line and $399 for the sportier Oakley glasses - will

mean that the device will have a negligible share of the

market.

"These glasses will be somewhat bulky ... not the most

consumer-friendly design. It is also going to be pretty

expensive. So the volumes are going to be fairly low," said

Jitesh Ubrani, research manager for International Data Corp's

worldwide mobile device tracker.

He estimated the device would sell "a few hundred thousand

units at most" but could help get more developers on board to

build apps for it. "This is a step to eventually build a

much-better mass-market headset."

As part of efforts to attract developers, Meta is also

expected to open its smart glasses to third-party developers

with a new software kit.