Samsung will team up with Alphabet Inc. Class C (GOOGL.US) to develop AR glasses to compete with Apple Inc. and Meta.

According to a senior executive in Samsung Electronics' mobile business, the company is expected to collaborate with Alphabet Inc. Class C to enter the augmented reality (AR) glasses market. TM Roh, President of Samsung's Mobile Experience Department, said in an interview that the two companies announced their collaboration on Project Moohan headsets just last December and are now working together on developing AR glasses. Roh did not provide more details about these glasses, but he mentioned that the glasses will ultimately be launched as part of the jointly developed Android XR operating system. As for the market entry timing, Roh stated that the two companies will "strive to achieve the quality and readiness we desire as soon as possible." Developing true AR glasses, a longtime staple of science fiction, has always been a challenging goal for the tech industry. Alphabet Inc. Class C, Apple Inc., and Meta are all working towards creating lightweight glasses that can overlay data and graphics on the user's view of the real world, but cost and engineering challenges have slowed progress. As the largest company in South Korea, Samsung is also one of the world's leading smartphone manufacturers. The company is looking for new growth engines for its consumer business. Last year, they introduced the Galaxy Ring, expanding their range of wearable and health-related electronic products that can track users' sleep, stress, and activity throughout the day. Together, Samsung Electronics and Alphabet Inc. Class C aim to develop Android XR as a unified operating system for all types of wearable head-mounted devices. The AR glasses launched by these two companies will compete with the upcoming product from Meta and potentially with Apple Inc., which has been more cautious about its plans. According to reports on Tuesday, Meta plans to launch AR glasses named Artemis in 2027. Meanwhile, Project Moohan headsets are a mixed reality device that combines AR and virtual reality (VR). It uses outward-facing cameras to simulate AR effects, but it is primarily a VR device that fully surrounds the user. Roh mentioned that Samsung is still working on determining the release date and price of this product, with an expected release this year but the price not solely based on manufacturing costs. Roh stated that a key part of launching these headsets will be providing enough content for the devices, adding that Samsung and Alphabet Inc. Class C are collaborating with third parties to develop customized original content. For example, Apple Inc.'s Vision Pro, priced at $3500, has been working on launching enough apps and entertainment features to make it a must-have product.