Summary of Key Points
Leineung Smart Glasses has achieved the highest global shipments in the AR (Augmented Reality) category, but the industry trend has shifted towards AI glasses (glasses with artificial intelligence capabilities). Leineung has launched the iO AI glasses, which feature a display, in an attempt to leverage its strengths in optical technology. However, it faces three major challenges:
1. The AR market is extremely small, with only 1.06 million units sold globally in 2025, compared to the much larger AI glasses market, which reached 8.7 million units.
2. Leineung has relied on a low-price strategy to gain market share but has not yet turned a profit and is heavily dependent on financing.
3. AI glasses place a greater emphasis on voice interaction and ecosystem integration, and Leineung's optical display technology may become a liability in its transformation. Its future success will depend on whether users are willing to wear glasses with displays on a daily basis.
Detailed Analysis
1. AR Glasses: Leading the World, but a Tiny Market
Leineung is indeed impressive in the AR glasses sector, accounting for 27% of the global shipments (about 286,000 units) in 2025, making it the market leader. However, the AR market is very limited—like being the top student in a class of just 100 people, while the AI glasses market has over 800 students.
In contrast, the AI glasses market saw a 322% year-on-year increase in shipments, with Meta accounting for 85% (7.4 million units) in 2025. Interestingly, Meta also tried smart glasses with displays before but failed to sell them. It later switched to display-free AI glasses (such as the Ray-Ban Meta), which became successful. This indicates that users currently prefer AI glasses that can help with tasks like chatting, translating, and taking notes, rather than just displaying virtual images.
2. Low Prices to Gain Market Share: Losing Money to Build Awareness
Leineung's success in the AR market largely stems from its low-price strategy. For example, the Leineung Air4 from 2025 was priced at 1,599 yuan, 900 yuan cheaper than the Air2 from two years earlier. The 2026 model, the GT, added features like Dolby Vision and spatial computing but was only 200 yuan more expensive than the Air4 Pro. While this “value for money” strategy helped Leineung gain market share quickly, it has not led to profitability.
CEO Li Hongwei admits that the company has not yet made a profit and estimates that it will need to sell 5-10 million units to become profitable. However, Leineung has only sold 280,000 AR glasses so far. To sustain operations, the company has raised funds 10 times since its inception in 2021, averaging two rounds of financing per year. If the demand for AI glasses declines in the future and investors stop supporting it, Leineung may struggle.
3. The New Attempt: iO AI Glasses with Displays
Focusing on the AI glasses trend, Leineung has chosen to develop the iO AI glasses with a green display, offering features such as note-taking and translation assistance. This is a strategy to leverage its expertise in optical display technology, distinguishing it from Meta and Xiaomi’s display-free AI glasses.
However, this approach carries risks. The iO glasses are heavier (34 grams) compared to the display-free models (e.g., the Ray-Ban Meta, which weighs around 45 grams). The question is whether users will be willing to pay extra for the display function.
4. Optical Advantages: A Double-Edged Sword
The core of AI glasses is their intelligent assistance, and users primarily interact through voice commands (e.g., asking for weather updates, translations, or taking notes). A display may not be essential. For instance, Xiaomi’s AI glasses, which lack a display, rely on their own large models and ecosystem (such as controlling smartphones, cars, and home appliances) to gain a 28% market share in the Chinese display-free AI glasses market in Q1 2026.
Leineung’s strengths lie in optics and hardware, but it relies on external partners for large models and ecosystem services. If users prioritize integration with smart home devices and the accuracy of AI responses, its display technology may become a disadvantage. Additionally, a display could increase the weight and reduce battery life, potentially diminishing its competitiveness.
5. The Future Depends on User Acceptance
The significance of the Leineung iO glasses lies in testing whether users are willing to wear glasses with displays daily. If users find the display functions (such as real-time subtitles or note-taking) useful, Leineung’s investment in optics will be worthwhile. Otherwise, its AR technology may become a hindrance as it would have to compete with companies that have established ecosystems.
For Leineung, being the market leader in AR is no longer the most critical factor. What matters is how long users are willing to wear its glasses daily and whether the features are frequently used. These metrics will determine its survival in the AI glasses era.
Conclusion
Leineung’s success in the AR market was due to its technical advantages and low-price strategy, but the industry is shifting. The company now faces a decision: should it maintain its display technology, potentially becoming niche but differentiated, or give up this advantage to compete with Meta and Xiaomi on ecosystem integration? Ultimately, user preferences will determine Leineung’s future. After all, the ultimate goal of smart glasses is to become something people wear daily, not just an occasional novelty.