Camera-equipped smart glasses in China now cost about $120, less than half last year's price. China saw 2.5mn pairs sold last year per IDC data, with sales more than doubling in the first eight months of this year. Camera-equipped models are rapidly gaining share over audio-only versions.

This opens a large market for makers including Li Auto, Alibaba, and TCL. If 10 per cent of China's working-age population bought pairs at current prices, sales could exceed $10bn. Counterpoint Research estimates hardware profit margins as high as 50 per cent. Suppliers like Sunny Optical benefit from new demand for cameras and lenses.

But mass adoption raises privacy threats. China released its first industry self-regulatory code for AI glasses in June, calling for minimal data collection and clear recording indicators. This followed controversy over strangers recorded without knowledge on subways, beaches, and flights.

Privacy safeguards require hardware and software changes. On-device processing reduces risks but needs more powerful chips, memory, and batteries, raising costs. Falling prices help manufacturers reach consumers, but privacy expenses could raise them again unless makers absorb the cost — potentially distinguishing winners from losers.