Avoid AR Hardware Giants

Shaan Puri shares his perspective on hardware startups competing against tech giants in the AR glasses space, specifically in response to a startup pitch for AR glasses for the deaf/hard of hearing.

Key Points:

• Competition with Tech Giants:

  • Major companies (Google, Facebook, Apple) are investing billions in AR glasses
  • These companies will "own" the market, not just "validate" it
  • Startups can't compete with their resources and development capabilities

• Hardware Development Challenges:

  • Startups using grant funding can't match the R&D budgets of big tech
  • Form factor improvements will come from companies with massive resources
  • Hardware is inherently commoditizable

• Market Reality:

  • Big companies will create the lightweight glasses consumers want
  • Captions/accessibility features will likely become apps on their platforms
  • Startups will waste money trying to compete on hardware development

• Alternative Approach:

  • Focus on software/applications rather than hardware
  • Build for existing platforms instead of creating new hardware
  • Consider how to provide value on top of established hardware platforms

• Strategic Advice:

  • Don't try to win an "arms race" against tech giants
  • Avoid spending limited resources on hardware development
  • Look for opportunities to build on top of existing platforms

The core message is that hardware startups should avoid competing directly with tech giants in AR glasses, as they lack the resources to compete effectively in hardware development and manufacturing.