Shoppers eager to gift AI-powered generative gadgets this holiday season may face limited choices, according to a CNBC report. Generative AI has become a buzzword captivating Silicon Valley since the launch of OpenAI’s ChatGPT in November 2022.
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The report cites Paul Gagnon, vice president of analytics firm Circana, who noted that earlier this year there was considerable excitement at trade shows about the potential of GenAI devices. At CES, startups like Humane and Rabbit created buzz with products touted for their ability to translate, take voice memos and answer questions.
Consumers are slow to adopt such devices
However, consumers have been slow to adopt such devices. Many critics describe them as “too slow and too prone to failure.” A key problem is that these gadgets lack the powerful chips and components needed to compete with established technologies like smartphones, according to Ben Bajarin, CEO of market research firm Creative Strategies.
Additionally, consumers stay away from these gadgets due to their high prices and unclear features, according to Bajarin.
Meta’s Ray-Ban smart glasses remain hard to sell
This means that products like Meta’s (META) Ray-Ban smart glasses, which allow users to take photos, listen to music and interact with an AI assistant, are proving a tough sell. These glasses do not offer augmented reality features that could captivate buyers. Additionally, Bajarin said these glasses still rely on strong internet connections and smartphone integration. These factors could lead to frustrating delays for users.
Meta is offering these glasses with a 20% discount until December 2. As a result, a pair of Ray-Ban Meta Skyler glasses will cost $239.20 instead of the previous price of $299 if purchased online.
Is META a buy, hold or sell?
Analysts remain bullish on the Strong Buy stock, with a Strong Buy consensus rating based on 40 Buys, three Holds and one Sell. Over the past year, META has increased by more than 70%and the average META price target of $662.62 implies 16.3% upside potential from current levels.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.