The XR industry has become lively again, and wearable ODM manufacturers are targeting AI

The terminal market is so lively, and ODM companies have also shown great potential in the XR market. Recently, ODM company Yidao Information stated on the investor communication platform that its subsidiary Yijing Virtual has served multiple well-known customers in the AR glasses field, and the new AI glasses are also steadily being developed.
In addition to Yidao Information, ODM companies such as Longqi Technology and Huaqin Technology have made new progress in the layout of the XR market. At the same time, in 2024, when AI technology is further implemented, we also see ODM companies extending their strategies to "AI+".
Yidao Information's main business includes consumer computers and tablets, reinforced intelligent industry terminal products, XR and AIoT products. Currently, consumer computers and tablets are its main sources of revenue, while reinforced intelligent industry terminal products, XR and AIoT products are important businesses for its future performance growth. XR products include VR all-in-one machines, MR products, AR computing units, and are aimed at fields such as video games, education and training.
The XR field is mainly managed by Yijing Virtual, a subsidiary of Yidao Information. Currently, it has launched various related products including VR/MR all-in-one machines, gaming all-in-one machines, lightweight VR glasses, industrial AR helmets, all-in-one and split type AR glasses, AR main computing units, etc. And in cooperation with Qualcomm, products based on Qualcomm XR2 chips have served multiple industry XR customers.
In June 2023, Apple's MR headset Apple Vision Pro attracted widespread attention in the market. Yijing Virtual has also launched a new generation of entry-level MR all-in-one machine VisionSE. Due to its extremely similar appearance, the industry once referred to it as a "knockoff Apple". Of course, this nickname has both negative and positive connotations, and the positive impact is that Yijing Virtual has gained popularity as a result. It is worth mentioning that the VisionSE series of Yijing Virtual MR all-in-one machines was more popular than expected at the CES exhibition in the United States. Shi Qing, the general manager of Yijing Virtual, said in an interview with the media that he brought more than ten prototypes and sold 10 at the exhibition at a price of $250 each.
It can be said that before Apple's own Pingti product AI smart glasses were released, other brands of Pingti had already taken a portion of the market share.
Another ODM company, Huaqin Technology, has also achieved a one-stop service capability for end-to-end VR/AR research and development, operation, and manufacturing. By the third quarter of 2023, it will achieve a breakthrough for VR global major customers. Smart watches, VR/AR and other categories have already become areas where Longqi Technology has ODM advantages. In the XR category, the company has cooperated with terminal manufacturers such as iQiyi and Luxottica in the early stages.
In wearable devices, AI smart glasses are rapidly rising, and IDC's data shows that global smart glasses shipments increased by 217% year-on-year in the first quarter of 2024. This has also become the direction of ODM enterprise layout.
Yidao Information stated that the company is optimistic about the new product direction of digitalization and AI intelligence of traditional glasses that can be worn for a long time, which is also one of the reasons why the company is developing AI glasses. Yidao Information is still undergoing an "AI+" strategic transformation, deepening technology cooperation with original partners such as Intel, AMD, Microsoft, Qualcomm, Rockchip Micro, and Spreadtrum. Yidao Information believes that "technology empowerment in new categories such as AI home computing centers and AI glasses based on artificial intelligence, spatial computing, and spatial perception is becoming increasingly important.
In recent investor relations activities, due to confidentiality agreements with clients, both Huaqin Technology and Longqi Technology have not disclosed specific client names and product models. Longqi Technology said that the company has successfully launched and continued to cooperate with two generations of smart glasses products with global Internet head customers. Thanks to the deep integration and innovative application of AI technology, the second-generation smart glasses products have performed well in the market.
The development momentum of the AI smart glasses market brought by the XR industry and AI technology remains strong. Although facing many challenges, the opportunities are equally enormous. With the continuous advancement of technology and the diversification of market demand, XR and AI technologies will be applied in more fields. ODM enterprises adjust their company strategy to maintain technological and market competitiveness while paying attention to technological developments and market changes.