Meta is taking another swing at the smartwatch market. The company plans to launch a health-tracking smartwatch with AI features later this year, according to The Information. Code-named Malibu 2, the device represents Meta's second attempt at wearable hardware after the company killed its original smartwatch project in 2022. The move puts Meta on a collision course with Apple in the increasingly crowded wearables space, while also reshuffling the company's broader augmented and mixed reality roadmap.
Meta is betting on wearables again. After abandoning its first smartwatch effort four years ago, the social media giant is reviving its hardware ambitions with a new device targeted for late 2026, The Information reports. The smartwatch, internally known as Malibu 2, will pack health tracking capabilities and AI features - Meta's latest attempt to establish a foothold beyond virtual reality headsets.
The timing isn't accidental. Meta is simultaneously planning an updated version of its Meta Ray-Ban Display smart glasses, which have gained traction since their launch. By coupling a smartwatch with its glasses ecosystem, Meta appears to be building out a connected wearables platform that could compete with Apple's tightly integrated hardware lineup.
But this isn't Meta's first rodeo with smartwatches. The company scrapped an earlier smartwatch project in 2022 that featured dual cameras and was positioned as both a fitness tracker and a potential metaverse controller. Technical challenges and Mark Zuckerberg's company-wide cost-cutting measures killed that device before it reached consumers. The decision came during Meta's "year of efficiency" when the company laid off thousands of employees and killed multiple hardware projects.
What's changed since then? For one, AI has become central to Meta's entire product strategy. The company has poured billions into AI infrastructure and rolled out Meta AI across its apps. A smartwatch with embedded AI features could serve as another interface for Meta's large language models - think real-time health insights, conversational interfaces, and predictive notifications powered by the company's Llama models.
The health tracking angle also makes strategic sense. Wearables have evolved from simple step counters to sophisticated health monitors that track sleep patterns, heart rhythms, and stress levels. Apple has dominated this space with the Apple Watch, which generated an estimated $41 billion in revenue in 2025. Samsung and Google (through its Fitbit acquisition) have also carved out positions. Meta entering now means playing catch-up in a mature market where consumers already have strong brand loyalties.
The smartwatch launch comes as Meta reshuffles its broader AR and MR roadmap. The company has reportedly pushed back Phoenix - a pair of mixed reality glasses - from 2026 to 2027, according to The Information's sources. This delay suggests Meta is streamlining its hardware efforts, possibly to avoid spreading resources too thin across multiple ambitious projects.
Meta's Reality Labs division, which houses all its hardware efforts, has been a massive cash drain. The unit lost $16 billion in 2024 alone and has hemorrhaged over $50 billion since 2020. Investors have grown increasingly skeptical of Zuckerberg's hardware bets, even as the Quest headset line has found modest success. A smartwatch could provide a faster path to revenue than complex AR glasses that remain years away from mass adoption.
The competitive landscape has shifted too. Apple is rumored to be developing AI-powered smart glasses and other wearable devices, while startups like Humane (with its AI Pin) have tried and largely failed to crack the AI wearables market. Meta's advantage lies in its existing social platforms and the data they generate - a smartwatch could tap into Instagram, Facebook, and WhatsApp in ways that standalone devices can't.
Pricing will be critical. Meta has historically subsidized its Quest headsets to drive adoption, pricing them well below competitors. Whether the company takes a similar approach with Malibu 2 or positions it as a premium device remains unclear. The Ray-Ban smart glasses retail for $299, suggesting Meta might target an accessible price point to maximize reach.
The technical challenges that killed the first smartwatch haven't disappeared. Battery life, sensor accuracy, and app ecosystem development all pose significant hurdles. Meta will also face privacy concerns - the company's track record on data handling could make consumers hesitant to let Meta monitor their health metrics 24/7.
Meta's smartwatch revival represents both ambition and pragmatism. While the company continues betting billions on a metaverse future that remains distant, a smartwatch offers a near-term hardware play that could generate revenue and deepen user engagement across Meta's apps. Success hinges on execution - something Meta struggled with in its first attempt. If Malibu 2 makes it to market, it'll test whether Meta can compete beyond VR headsets in a wearables market where Apple has spent a decade building dominance. The real question isn't whether Meta can build a smartwatch, but whether consumers want one from a company they associate with social media, not health and fitness.
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