Gene Munster Says Meta's $65 Billion AR/VR Bet Shows Hardware, Software, AI Integration Is 'Really Hard,' Giving Apple More Time On AI
Gene Munster highlighted the challenges Meta Platforms faces in integrating hardware, software, and AI during its Connect 2025 event, suggesting that Apple has more time to develop its AI strategy. Meta has invested approximately $65 billion in Reality Labs since its rebranding, but product demos of new smart glasses faced issues. Munster believes these struggles indicate that even well-funded companies encounter significant hurdles, giving Apple a longer timeline to refine its AI approach, despite skepticism about its current efforts.
On Wednesday, Gene Munster said Meta Platforms Inc.'s META Connect 2025 keynote underscored the challenges of combining hardware, software and AI — and that Apple Inc. AAPL has more breathing room than investors think.
Munster Sees Lessons In Meta's Struggles
Deepwater Asset Management's managing partner took to X, formerly Twitter, after Meta unveiled its latest lineup of Ray-Ban and Oakley smart glasses at its Connect 2025 event.
"Good news for $AAPL," Munster wrote. "One take away from tonights $META keynote is hardware, software, AI integration is REALLY hard as evidence that two glasses demos struggled."
"And they’ve poured energy into hardware. Meta has lost/invested about $65B in Reality Labs since the name change in 2021. Bottom line: Apple has more time to figure AI out than most realize," he added.
His comments came after several on-stage demonstrations of Meta's new smart glasses faltered, spotlighting the complexity of merging artificial intelligence with wearable technology.
Meta's Expensive AR/VR Push
Since rebranding as Meta in 2021, the company has plowed nearly $65 billion into Reality Labs, its division focused on virtual reality, augmented reality and AI-powered wearables.
At Connect 2025, Meta introduced the $799 Ray-Ban Display glasses with a built-in digital screen, the $499 Oakley Vanguard glasses geared toward athletes and upgrades to its Quest VR headsets.
Despite the flashy launches, glitches during product demos drew attention — and critics.
Munster framed the missteps not as a failure but as a reminder that even well-funded companies face steep integration hurdles.
Apple's AI Timeline Extends
By comparison, Apple has moved cautiously in augmented reality and AI. Analysts, including Ming-Chi Kuo, expect the company to debut its own smart glasses closer to 2027, alongside updates to its Vision Pro headset line.
While Munster argued that Meta's stumbles give Apple more time, the iPhone maker faces skepticism over its own AI strategy.
Wedbush analyst Dan Ives previously called Apple's AI push a "disaster," noting Siri has failed to impress and internal development lags behind rivals.
Venture capitalist Chamath Palihapitiya also blasted Apple's innovation potential, while analysts highlighted that its iPhone 17 lineup brought mostly incremental improvements.
Price Action: Shares of Meta fell 0.42% to $775.72 on Wednesday and inched up 0.50% in after-hours trading, according to Benzinga Pro. Apple shares gained 0.35% to $238.99 during regular hours.
Benzinga's Edge Stock Rankings indicate that AAPL maintains an upward trajectory across short, medium and long-term horizons, with additional performance insights available here.
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