Meta Platforms (META) has been in full focus recently after an internal communication revealed something shocking.
After becoming the market’s first social media giant, the company has shifted its focus to expanding into the artificial intelligence (AI) field. As this new frontier of the tech sector has continued to grow rapidly,
Meta has maneuvered to compete with its Magnificent 7 peers, a group of market leaders responsible for much of the industry’s growth.
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Last week (the final week of May), Meta reported strong Q1 earnings and high capital expenditure plans, indicating that it intends to continue scaling its AI efforts. However, that’s not the only noteworthy thing Meta has revealed recently.
According to reports, the company is planning on expanding into another area, one that many people likely didn’t see coming. This news has left both investors and consumers with pressing questions.
CEO Mark Zuckerberg is looking to take Meta Platforms in a new direction.
Image source: Morris/Bloomberg via Getty Images
Meta sets its sights on a surprising new market
In March 2016, long before the launch of ChatGPT kicked off the current AI revolution, Meta captured many people’s attention when it released the Oculus Rift, its first virtual reality (VR) headset. This device marked the company’s foray into consumer products.
Since then, Meta has expanded its VR lineup, cashing in on the growing interest in both VR and metaverse gaming. Its products can be found in stores such as Best Buy, Walmart, and Target. But now Meta plans on taking its consumer tech expansion a step further, in the form of retail stores. Per Business Insider:
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“The company has a project to expand its retail footprint, which is not broadly known internally yet, according to an internal communication seen by Business Insider. The communication also said Meta planned to hire retail employees.”
Meta already has one retail store, which is located on its campus in Burlingame, California. Opened in 2022, the Meta Store allows visitors to sample the company’s hardware products, similar in both strategy and appearance to the typical Apple store.
Additionally, last year, Meta hinted at a retail expansion when it debuted a pop-up shop in Los Angeles to sell its Ray-Ban Meta smart glasses. CTO Andrew Bosworth has described 2025 as the company’s “most critical” year, adding that it plans to significantly expand its AI-powered wearables lineup.
Now it seems that Meta is delivering on that promise, threatening to rival Apple as it expands into the physical retail space. While the number of stores Meta plans on opening has not yet been revealed, some experts believe this step is necessary for Meta’s growth to continue.
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“They aren’t opening stores because they want to—they’re doing it because they have to,” states technology founder and strategist Jared Navarre. “Because the technology they’re building can’t be sold through a screen. It has to be experienced. It’s like trying to describe childbirth to someone who’s never felt it—words will never be enough.”
Can Meta successfully integrate into this part of the industry?
Meta’s decision makes sense, as it looks to cement its reputation not just as a social media company but as a consumer tech producer that makes wearable AI-powered devices. However, it comes at a time when Jonny Ive, the former Apple leader credited with designing the iPod and iPhone, has joined forces with OpenAI.
Related: OpenAI teams up with legendary Apple exec
Ive’s partnership with the maker of ChatGPT is poised to make the consumer tech market even more competitive. And as Reilly Newman, founder of Motif Brands, tells TheStreet, it isn’t the only risk Meta is facing.
“The desired behavior of shoppers is likely to be uphill for Meta because the brand isn’t associated with a “physical” brand in the minds of consumers,” he speculates.
“The brand’s position as a social media and advertising empire frames it not as a product brand. Overcoming this perception will be challenging because it involves rewiring how people view Meta, which must be accomplished through reassigning new meanings via associations.”
Even so, other experts feel that Meta may benefit from a shift in the industry if it can correctly execute this transition. Felix Hartmann, Managing Partner at Hartmann Capital, predicts that the consumer tech market is entering a “story over storefront” era.
“In a world flooded with digital noise, the companies that win will be the ones who can create visceral, in-person magic,” he predicts.
Related: Billionaire fund manager, skeptical of AI, backs shocking stock
