Meta Cuts 10% of Reality Labs Staff to Shift Focus to AI and Smart Glasses
Written by Emily J. Thompson, Senior Investment Analyst
Updated: 5d ago
0mins
Source: CNBC
- Layoff Impact: Meta has laid off 10% of its Reality Labs staff, approximately 1,000 employees, primarily affecting VR-related projects, indicating a significant shift in the company's investment strategy that may undermine industry confidence.
- Strategic Shift: The company is reallocating resources from virtual reality to artificial intelligence and smart glasses, launching the $799 Ray-Ban Meta smart glasses, signaling its intent to capture a share of the rapidly growing wearable device market.
- Market Outlook: IDC projects a 41.6% growth in XR device shipments to 14.5 million units by 2025, but VR headset shipments are expected to decline by 42.8%, reflecting waning consumer interest in VR, which could impact Meta's long-term strategy.
- Industry Reaction: VR developers express concern over Meta's pivot, fearing it may affect the overall health of the industry, although Meta maintains that it will continue to invest in VR despite the layoffs.
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Analyst Views on AAPL
Wall Street analysts forecast AAPL stock price to rise over the next 12 months. According to Wall Street analysts, the average 1-year price target for AAPL is 299.69 USD with a low forecast of 230.00 USD and a high forecast of 350.00 USD. However, analyst price targets are subjective and often lag stock prices, so investors should focus on the objective reasons behind analyst rating changes, which better reflect the company's fundamentals.
32 Analyst Rating
19 Buy
11 Hold
2 Sell
Moderate Buy
Current: 256.440
Low
230.00
Averages
299.69
High
350.00
Current: 256.440
Low
230.00
Averages
299.69
High
350.00
About AAPL
Apple Inc. designs, manufactures and markets smartphones, personal computers, tablets, wearables and accessories, and sells a variety of related services. Its product categories include iPhone, Mac, iPad, and Wearables, Home and Accessories. Its software platforms include iOS, iPadOS, macOS, watchOS, visionOS, and tvOS. Its services include advertising, AppleCare, cloud services, digital content and payment services. The Company operates various platforms, including the App Store, that allow customers to discover and download applications and digital content, such as books, music, video, games and podcasts. It also offers digital content through subscription-based services, including Apple Arcade, Apple Fitness+, Apple Music, Apple News+, and Apple TV+. Its products include iPhone 16 Pro, iPhone 16, iPhone 15, iPhone 14, iPhone SE, MacBook Air, MacBook Pro, iMac, Mac mini, Mac Studio, Mac Pro, iPad Pro, iPad Air, AirPods, AirPods Pro, AirPods Max, Apple TV, Apple Vision Pro and others.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
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- Team Integration: The founding team of Q.ai, including CEO Aviad Maizels, will join Apple; Maizels previously founded PrimeSense, acquired by Apple in 2013, highlighting Apple's commitment to attracting AI talent.
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