Oura postponed its initial public offering on Tuesday, citing "uncertainty in the IPO market," but analysts questioned whether broader concerns about the AI wearables sector played a role. The Finnish smart ring maker had signaled strong demand ahead of the expected debut.
The pullback comes as the AI wearables market faces mounting headwinds. Meta Ray-Ban smart glasses, equipped with discreet cameras, have drawn sustained criticism on social media as "pervert glasses" following reports of unauthorized recording and photography. Incidents include a user whose date filmed without permission and another account of unauthorized videos shot in a retail setting. Meta's own marketing campaign featuring Kylie Jenner filming everyday moments intensified concerns about surveillance. The company has since unveiled a camera-free smart glasses option.
DA Davidson analyst Gil Luria declared the camera-equipped glasses category effectively finished. He noted that after gifting the spectacles to his teenage sons last year, both initially excited, they now refuse to wear them. Anshel Sag, principal analyst at Moor Insights & Strategy, told CNBC he suspects unstated reasons drove Oura's IPO delay but acknowledged difficulty identifying them. He described the pullback as "weird."
The backlash reflects broader unease with AI-driven wearables. Smart glasses have been banned from gymnasiums and other venues over privacy concerns. Flock Safety's license plate scanning technology faced vandalization and contract cancellations after community opposition. A federal judge in Los Angeles threatened contempt charges in February 2024 if spectators wore Meta Ray-Ban AI glasses during CEO Mark Zuckerberg's testimony in a social media addiction trial.
Avi Greengart, founder of research firm Techsponential, noted that health-focused wearables, including Apple Watch and Oura smart rings for sleep and exercise tracking, have demonstrated consumer value. Accessibility features on Apple AirPods, functioning as hearing aids, represent practical application. Conversely, pins and pendants designed as AI personal assistants have encountered design and execution failures. The Humane AI Pin discontinued last year after poor reviews. The Rabbit r1 personal assistant lacked distinct advantages over smartphones and faced technical problems.
Greengart stated plainly: "If you force someone to spend $700 on a device that overheats, has a user interface that doesn't work in sunlight, battery life that is poor, unless what it does is magical, that's not going to work."
Apple, Google, Meta and OpenAI continue releasing new wearable iterations, including Meta's Muse Charm and OpenAI's Dots personal assistant. Meta has expanded Ray-Ban glasses offerings across price points. The sector confronts skepticism about whether the technology solves genuine consumer problems or merely extends surveillance capabilities.