HSBCGlobal Investment Research,14Januarv2026EquitiesGlobalTechLuxGlobalTechFrom Tapto Blink:when Alboosts glasses vs phonesGlobal*Al supports new form factors: ergonomics. tech stack andhealth challenges analysed to assess smartalasses potentialhPlatformsn@hsbcib.com* We revise up 2040e TAM for smart glasses; ESLX benefitsfrom Meta's R&D. competition bulkina uo IalTechPlatformsAnalyst*Upgrade ESLX to Buy (from Hold), Iif TP13%toEUR340;comretain Buv (TP USD905) on Meta.Hold (TPUSD250) on Apple1207689778isp@ConsumerAnalystglasses):Al's Large Language Modelsth@hsbcib.comThismodeopensoppotunities for usersto442079916587 and services without handling a smartphone. For,nRambourgroaressivelydisnlacesmartohonesbatferLuxury&Consumerranceonhedt and soal aspeds arerequired.@hsbc.combot, we alsorefledton a Google Glassuser1442079910387AkshayGupta*,CFA&consumerAnalyse 25%), gives an indication of a possible displacement.2hsbc.com.hk297429802040eTAMbasecaseby3%,tocUSD20on,us to revisit both ourmarket volunTechPlatformsAnalystare joiningMetaand@hsbcib.comts to reate a new computing platfom, incuding442079916734nchPlatformsAnalystthe Metagassesandis the globaleader (c70%@hsbc.com142032686280petition (20% ESLX share in 2040e), the more likelyn critical mass and attractR&D efforts to the benefit of all plavers>TPofEUR340,Meta (Buy), Apple(Hold):thallour@hsbc.con(frmELUR300) on the backof:(Q)a1% andT07145093337rease in our EBIT estimates in 2026e and 2027e and(i) DCFrlloverby oneSonamChamaria*impliesc23%upside, we upgrade to Buy (fromHol), WBangalorea Buy ating on Meta: it can play a majr olein his new computing platformtancof/Sec.Secunties (USA)In; andismartphone displacement riskgiven ts technical expertise build withits.Emplovedtitul elity headset Vision Prothat can support the developmentofits own smantglasses in the future.Summary of HSBC ratings,targetprices and valuationsDisclosures&DisclaimerIssuer of report:-HSBCContnentalEuropehis report must be read with the disclosures and the analyst certifications inthe Disclosure appendix, and with the Disclaimer, which forms part ofithttps://www.re
MHSBCEquities。GlobalTech14 January2026camera for contextual information: these features open the potential for a widesmatohones now face ariskif not to be replaced, a least to bedisplacednics, usages and current/future2040smartglasseNew2040eTAMofcUSD200bnmore in 2026-27 including fromAlphabetfocusingonitsXR softwareachescUSD200bn in2040in the market(15m2025e).We alsoruna'swordwide in2040 and a TAM ofan a S-curve) gets to 58m users and ahne forESLXto 35munits in2030 (vsnefits from its vertically integrated operatingme).It shouldcontinueWe retain aBuy ratingonMeta. We seeApple inapositinto hedge the smartphone displacementriskgiven ts techniclexperiseaquired with is ision Pro headset to supportits own smartglasses in the futunedsmartglassesmodelsphonesbut swapable batteryasolutin,SmartGlassesve translationincluding transcrptsink ofwearables(wristband)Tlactesforallight leakagewithglassesSmartGlassesSmartphon...
