CICC: Successful paradigm of AI glasses may have emerged, optimistic about the upgrading of core devices such as SoC, storage, and display.

The research report released by Zhongjin states that AI glasses are based on the design of traditional glasses and frames, equipped with components such as cameras, acoustic modules, and SoCs, to achieve intelligent product upgrades and integration with multimodal large models, providing a new way of interaction. After multiple rounds of product iteration, the successful paradigm of AI glasses may have emerged, with an estimated shipment of about 2 million units and a penetration rate of 0.1% by 2024, with a market size of about 36.5 billion yuan. Looking ahead, the upgrade of core components such as AI glasses SoC, storage, and display is promising, optimizing user experience, enriching application scenarios, and potentially creating the next mobile terminal. According to data calculated by Wellsenn, global AI smart glasses shipments are expected to reach 80 million units in 2030, with a penetration rate of approximately 4.3%. After multiple rounds of verification, the successful paradigm of AI glasses has emerged. 1) Pricing: The price is affordable, with room for further cost reduction. Global AI glasses brands have successively released multiple products priced in the range of 1-3,000 yuan, providing users with relatively low trial costs. In addition, the potential for cost reduction in core components such as SoCs in the future opens up the sinking market and attracts users to make purchases. 2) Interaction and application: Intelligent glasses provide new interaction methods by integrating large models, and the large models provide more application scenarios, potentially creating a full-scene life assistant and providing a new hardware experience. 3) Brand: Currently, AI glasses products from Meta, Baidu, Rokid, and Xreal have been released, and it is expected that Samsung, Apple, ByteDance, and Xiaomi, among other major companies, have related product plans and are expected to be launched in the next 1-2 years. Zhongjin believes that top global companies are needed to educate consumers, complete market promotion, and attract more application developers to enrich the ecosystem for new terminals. Looking back at the multiple rounds of development in the ARVR industry, it is believed that the successful paradigm of AI glasses has now emerged, and the industry is expected to enter a rapid development stage. There is still considerable room for optimization in AI glasses, and a rich product form is expected to drive shipment growth. 1) Basic functions: In the future, AI glasses are expected to solve the customization of refractive power through ultra-thin interlayer lens design and improve adaptability for sunglass wearing using electrochromic technology, helping AI glasses achieve and optimize basic functions. 2) SoC: Based on the current breakdown of product bills of materials, SoCs account for a high proportion of costs. It is optimistic about the prospects for domestic chips being successively released in the future, providing higher-cost-effective chip solutions and upgrading in terms of battery life and cost, among other aspects. 3) Storage: The future intelligent glasses are expected to have rich functions, which may promote an increase in storage specifications and, as shipments grow, calculate that the future storage market may achieve a billion-dollar market increment. 4) Optical display: In the medium to long term, optical display is one of the key upgrades for AI glasses. With core components such as optical waveguides and Micro LED becoming mature, top global brands are expected to be the first to launch AI glasses (AR glasses) with displays, further enriching application scenarios and completing information interaction and feedback through display functions, optimizing user experience. In conclusion, Zhongjin believes that in the next 3-5 years, AI glasses are expected to achieve continuous upgrades in basic functions, SoC, storage, display, and other areas, improving user experience, enriching application scenarios, and driving overall product shipments. Risk factors AI smart glasses shipments fall short of expectations; new function mass production and implementation progress is below expectations.