China tries on the smart glasses craze — and its privacy risks

{"text":[[{"start":5.24,"text":"At about $120 for the typical pair, camera-equipped smart glasses in China cost less than half what they did a year ago. That may be good for promoting adoption of the devices. But the more popular they become, the greater the threat to privacy — which could introduce a new set of costs."}],[{"start":22.32,"text":"China saw 2.5mn pairs of smart glasses sold last year, according to IDC data. In the first eight months of this year, sales on key Chinese online platforms more than doubled. And the camera-equipped models have been rapidly gaining market share relative to audio-only models."}],[{"start":39.88,"text":"That opens up a potentially large market for makers such as Li Auto, a carmaker that has branched out into smart glasses, ecommerce group Alibaba and electronics group TCL. If 10 per cent of China’s working-age population bought a pair at current prices, it would suggest sales in excess of $10bn."}],[{"start":58.16,"text":"In profit terms, that’s also a considerable opportunity. Rough estimates on component costs from Counterpoint Research suggest hardware profit margins can run as high as 50 per cent. For suppliers such as Sunny Optical, it creates new demand for cameras, lenses and other components that would pick up even before smart glasses reach anything close to mass adoption."}],[{"start":null,"text":"

"}],[{"start":79.48,"text":"All this raises the question of what happens when millions of users, rather than just a small group of early adopters, are walking around with inconspicuous recording devices on the bridge of their nose."}],[{"start":91.04,"text":"Regulators have already taken notice. China’s first industry self-regulatory code for AI glasses was released in June, calling for minimal data collection and clear indicators when cameras or microphones are actively recording. The move followed controversy over videos showing strangers being recorded without their knowledge on subways, beaches, shopping malls and on flights."}],[{"start":112.32,"text":"For the makers, today’s guidelines could become tomorrow’s costs. More obvious recording indicators and stronger physical and data controls require changes to both hardware and software. Processing more camera and audio data directly on the device instead of sending it to cloud storage can reduce privacy risks. But that requires more powerful chips, additional memory and larger batteries, raising component costs."}],[{"start":136.04,"text":"This means that the impressive demand for smart glasses may prove deceptive. Falling prices are now helping manufacturers reach more consumers but the necessary expense of safeguarding privacy could raise them again, unless their makers are prepared to eat the extra cost. That might be what ultimately distinguishes winners from losers."}],[{"start":161.32,"text":""}]],"url":"https://audio.ftcn.net.cn/album/a_1790233737_6879.mp3"}