First, let me say thanks again, everybody, for coming today. Super exciting time at Vuzix. Yeah, you guys have all seen the cautionary statements before. Look, Vuzix, this industry—I hear from everybody, and I get it—when, when, when? If you think about it, it has been a long time in this industry to finally get to the point to where the whole world's waking up. I personally have been in this game for 28 years, and people like Microsoft and Google and Magic Leap, etc., they all have been fighting this fight. Our vision has been the same from the very beginning. I always felt that a wearable computing system was going to be the future of computing in a lot of different ways. I thought it would impact the world, but today it's even more poignant.
It's literally going to be everywhere in front of all of us. Even though there's been all these challenges over the last years, many years in this space, there's been zero let-up, zero dollars slowing down going into making this business happen. The whole future of computing is going to revolve around artificial intelligence, connected human beings, the augmented human, and the only way to do that is going to be through a pair of glasses. Your eyes, your heart, your soul, everything you see and do and feel and hear works through most of the senses on your head. That vision has been part of our vision from the very beginning. It's accelerating. There's more and more money. There's more and more opportunities that are coming.
Vuzix has built a background to build and take a significant position in the space as it unfolds here over the coming years. We're all going to look back very soon and say, "Holy mackerel, this thing happened overnight." It will—it's going to be like a switch coming up where business and companies around the planet are using glasses in some form to get jobs done, to walk down the street, to be involved in the world, to replace their phones. We have built the solutions required to deliver into certain components, key pieces that are going to drive the future of what these glasses look like. High-volume manufacturing at the same time. For those of you that haven't seen the video, I'll show it to you in a few minutes. Over on Becker Road is a gold mine.
The facility that we built is designed to manufacture high-volume waveguides at price points that nobody else can compete with today. I'm going to talk a little bit about the competition and what they're doing on the waveguide manufacturing side of the house. Then I'm going to talk a little bit about what we're doing and how it leapfrogs so many companies today. That is a cornerstone piece of where Vuzix is going. We've also developed over the years a lot of great relationships. Of late, I'm sure you're seeing some of those relationships grow with companies like Quanta Computer putting in $20 million in stages, etc. I will describe a bit more about some of those growing relationships coming up.
Finally, we have been reworking over the last year and a half our operations with a focus on going after the broader market and the supply of the key components that are going to drive this industry. Yes, we have enterprise products. We think the enterprise industry is going to be a significant industry and opportunity. What will turn even it is what happens on Becker and in our manufacturing plant over here in Rochester, New York. It is a market that is expected to be in the tens of millions of units, actually bigger than that even. If you look at where it started, right, personal computers. Last year, 2024, there were 245 million personal computers sold. The global smartphone marketplace, there were 1.4 billion smartphones sold last year. Enter smart glasses that are touted to be the replacement.
They'll start as an accessory, but it's going to be a replacement ultimately for your phone. When that happens, think about the size of this business. It's literally a billion units a year kinds of numbers. Actually, from a waveguide perspective, double that because there's two waveguides per pair of glasses. There's a way to go to make this happen, but this is the vision. It's why there's so much money being spent on the West Coast. Everybody sees this is coming. One of the key parts to make this happen are the parts that we've built in-house.
Those four bullet points that you see up top there, the ability to manufacture in volume, the systems and solutions, the capabilities to design those waveguides that are needed for those devices, they're all cornerstone to drive what's going to happen in that bullet point on the end, the next step in the evolution of the computer industry. Vuzix is positioned, I believe, better than almost any company on the planet, not just because of our experience, but what we've built in this industry, what's over on Becker Road and the team that we have built, it just second to nobody out there today. On that note, a lot of amazing people work at Vuzix today. Sadly—give me a moment. I hate this part. Pete Jameson, Vuzix's Chief Operating Officer, unfortunately succumbed to cancer.
He's one of the guys that have been pioneering in this space after all these years. It's sad to lose him on the team, but our team now is fighting for everything he believed in. We were happy to have him with us while we had him. We have a great team today. We've built an incredible intellectual property portfolio. Our team loves to work at Vuzix. They're dedicated. They believe in this space. They can see how we stand apart from the rest of the world and what they're all trying to do. They can see how we fit in. We have an expanding family of enterprise-based products. What's cool about it is those products show people the way for white labeling and for OEMing and for building their own versions of it.
It helps us build the core technology that's needed that's going to go into these glasses. We stand next to nobody when it comes to our ability to manufacture in volume. It's a beautiful thing to watch that plant floor run. I can't talk enough about it. Our friends from Quanta were here three or four weeks ago, Doug. I can't remember exactly. Time's flying. It's so much fun. Even they were like, "It's just hard to believe." That's not easy to do when you're making something that has to have the high standards that are required for these waveguides to perform well. Scalable, high-volume, and low-cost manufacturing is going to be a cornerstone to the people that will win. You're going to see companies there. You'll see others.
The bottom line, when it comes to what it costs to build that car, those engines that are coming from those competing companies will never compete with the price that Vuzix can deliver waveguides for. I mean, I think when our friends were here, we ran the plant modestly for a day and a half, two days, and we made thousands of waveguides that just shoveled off the plant floor. Nobody can do that today yet. This is a really tough problem to solve, especially to do it and yield in at price points that make any sort of sense for the broader markets. We've got a great roadmap for the future of where we're going. There are two pillars that drive the company today. One of the most important things we do is make waveguides and the core technology that goes into smart glasses.
Waveguide design and manufacturing is probably the most important thing Vuzix does today. That said, we have built a business around enterprise smart glasses. It's part of our business, I believe, is going to grow. I know that if you look at the last year and a half to three years, it's hard-pressed to see that. This whole industry has been going through some ups and downs in this regard. It's very, very positive. There's a bunch of enterprise programs. Vuzix is—we're in them. It's happening. Guys like NADRO, they've got 500 systems in the field already, and it's growing. There are wins, and it's being used, and the return is significant. We're investing a bit in here, but to be clear, most of the investment, most of our effort is going into waveguide manufacturing.
One of the things that's tough about a pair of glasses is you don't have a user interface. You put the glasses on, right, and then you could have this thing floating out in front of you. Maybe it's a touchscreen. You have all these sensors on the glasses, right? Then you can reach out, and you can touch in space. It's exhausting. It doesn't work. There's no real simple user interface like holding your phone and touching the screen on your phone with a touchscreen. With artificial intelligence, that whole idea of a user interface gets incredibly simplified. Literally, it can do things just by knowing where you are and what you're looking at. It's going to integrate life in the digital world together. The interface becomes way more simple. Simple example. You're going to get off the plane in Beijing.
The glasses are going to wake up and say, "Hey, we're here. Would you like me to get an Uber out front?" It's only going to take a 10-minute trip over to the hotel. You say, "Yes," etc., etc. Noticing that? I never take my phone out of my pocket. I never open up my Uber app. I don't open up my navigation app to find out how I'm going to get to the hotel. It all just happens because AI is your partner. That agent is part of the trip with you, and it's helping you serve you what you need to make that trip happen. It's a completely different paradigm. AI is the killer application. I believe AI is going to be the beginnings of the end of applications. The whole idea of picking up your phone and scrolling to this app and clicking buttons and stuff.
You watch. There are so many people that would never do that today. My mother is an example. She hates smartphones. The whole idea of finding an app and opening the app and doing the thing in the app, it is like it just does not make any sense to her. It does to us now because that is what we have been trained to wait until it just happens for you. It is going to be magical. That is really the definition of technology that is useful in the future. You do not know it is there. That is what is going to happen here. This will drive the future of this industry. It is part of the reason why they are saying phones are going to be obsolete. I do not think they will go away. My mom still has a wired phone to her wall by way of example. It is going to be a significant change coming up.
The market opportunity, we discussed this a little bit. OEM waveguides, waveguide supply with reference designs represents the largest single market. If you think about all those companies, they're going to be making glasses to supply to the world. That's what we're talking about here. This is somebody's got to design this waveguide, and then somebody's got to manufacture this waveguide. This piece of business literally is pointed to be a billion pair of glasses a year. There's two waveguides per. If the average selling price is $30, that's a $60 billion a year business that's coming in waveguides. To attain a 10% share would be wonderful. There's going to be a lot of winners. I'll talk about that in just a few minutes. This is big. This is literally game-changing kind of business. Then there's the enterprise smart glasses space.
There are all kinds of numbers out there today. You can do research from Markets and Markets and the likes. None of them, even today, with how challenging it has been to get to where we are at, are backing off their numbers that they talk about—literally million unit volumes in the enterprise space coming up. If you look at the smart glasses for enterprise, like in warehousing, which I will give a simple example of here coming up, that is upwards of a million units a year for enterprise-based solutions. Total addressable market at an average selling price of $1,000, which in some cases, by the way, you could imagine paying a lot more than $1,000 for.
If you had a pair of smart glasses on and you were working on the Boeing aircraft, they never would have forgotten to put the screws or the bolts in the door. Because the glasses would have just said, the bolts aren't in the door. AI engines running in glasses, cameras on. It's going to change completely. How much would you pay for that aircraft not to have the door not to have flown out? And in quality systems alone, that's how big this business could be. Imagine in warehousing when you're replacing audio picking solutions from people like Vocollect. That's a $1.5 billion a year industry by itself. You could see how this business would be here. On the OEM waveguide side of the business, just as a reminder, I mean, you guys have known Vuzix for a while.
You get the idea, I think, of what a waveguide is. It's a beautiful thin piece of plate glass or silicon carbide or plastic. And there's nano structures built into the surface of it that allow you to inject light in the side and have it propagate towards your eye. Boom, there are the images out in front of you. These waveguides are hard. That's what we do on Becker Road. That's what the design staff and the rest of the crew of Vuzix are focused on. We're a leader in this side of it. We've got more years at making custom waveguides than anybody. I'm very confident we've done more custom waveguide designs than any other company on the planet today. At Vuzix, you don't just come to us and get a manufactured waveguide.
We don't just do a design and then let some third party do the manufacturing. It's all here, one-stop shop. That's key. The reason why that's key is we know how to make waveguides that work good in the finished gizmo and that look good in the finished pair of glasses. You need to know how to do the whole darn thing in order to know how to get it all right before it's all said and done. Design, layout, replication, mold creation, metrology, materials, processing. We've also got capabilities that we've built in that are critical for the future of this industry.
You put a pair of glasses on and you're an average Joe and you're walking to the bar and it's like 10 o'clock at night and you walk in and you look like you got a projection screen from your projector coming out the front of the glasses. It's never going to work. You need to minimize and get rid of the forward light, this technology we call Incognito. This is an example of one of the features that we bring to the waveguide world. Besides just, "Hey, we make a waveguide." These waveguides are designed for color. They're designed for monochrome. They're designed for minimal forward light. The most fundamental aspect in the broader markets, and quite frankly, everywhere, these things have to operate as glasses. Number one, it's a pair of glasses. It's the first thing you do with them on. You put them on.
Oh, I've got to read my phone. Oh, I've got to read my paperwork. Oh, I'm working. I got to do this. They have to operate for the 60% of the world that needs glasses today. We have developed technology that allows us to integrate directly into the waveguide stack prescriptions. So the prescriptions can be dealt with right through the whole channel. We'll see coming up, there are companies that will be part and parcel of delivering to the broader markets right through to the prescription side of it that are designed to work with Vuzix systems. On the waveguide production side of the house, we've got this amazing plant floor. It's expandable to 39,000 sq ft where we're at now.
The beautiful thing about Rochester is, and there's probably some folks in Rochester, much to their chagrin, there's lots of space available for expansion if we need it. This facility alone, we can probably 3x to 4x the amount of waveguides we can make, which is around a million and a half a year in our current spot in the building that we're in. There's enough room to expand that three times. We have a lot of space in the current Becker facility to build a lot of waveguides, but it is still not enough for what the broader markets are going to need ultimately. What I'd like to do now is show you a video which was playing earlier, a portion of our plant floor in operation making waveguides. Cool video.
As amazing as it is, what you saw, it's really only showing a portion of what the plant floor has in it that actually makes these waveguides. The parts that we're not showing are printing and some other things that happen that, again, we really don't share with folks. It is a second-to-nothing plant. There's no other plant out there today that's like it. We also have this new facility that we acquired from a large company on the West Coast. It's a company that had intentions of being in this space making waveguides. They decided that they would prefer to partner with a third party like a Vuzix. There were lots of potential opportunities for them. They chose Vuzix to be the partner to work with. We acquired this equipment and the fab that's there. I'm just showing you one room. There are actually multiple rooms of equipment.
There's other stuff that goes on in here. But this facility is about making the tool sets that will run on our plant floor today. This is where part of the keys to the kingdom are. How do you do the design, the layout for the grating structures? Ultimately, we want grating structures that are going to be subwavelength grating structures. So I'm sure you've noticed there's these rainbows as this thing moves around. The light catches the gratings just right. There's kind of a cool look to them, right? We're going to make that go away. It's going to be almost impossible to see any grating structures before this is all said and done. And the equipment that's in this facility will enable that next-generation stuff. So you can imagine Vuzix has a whole pile of next-generation waveguide capabilities that we're working on.
This facility and the fact that it's on the West Coast, closer to many of our potential partners, opens up some doors for Vuzix in a great way. From a capacity perspective, run rates of a million and a half right now is really where Vuzix is at. Maybe there's one piece of equipment that we need to actually put it exactly at that million and a half to two million number, but effectively, we're there today. The ability to grow that is easy. Who's going to win? Everybody's hearing about this company and that company and XREAL and blah, blah, blah, blah, blah, and LUMUS. There are all these other companies that are starting to make hay in this space. Let me start by saying it's great. After 28 years, we're finally seeing success in the space. Woohoo.
We should celebrate every single one of them because rising tides float all boats. That said, just like in every industry that's worth a hill of beans, there's more than one winner. There's always more than one winner. If you look at the car industry today, there are 800+ manufacturers with 7,000 models. The smartphone industry today, there are 200+ manufacturers making. Well, the numbers speak for themselves. Finally, in the smart glasses space, there's going to be other players. It's impossible for one company to have every feature, every aspect of what's needed for every pair of glasses that ever get made. Even though Vuzix is going to attempt to try to be that kind of a supplier, there are certain areas that we're really, really good at, and we're going to focus on those.
Those areas are the areas where the sweet spot of the marketplace is today. Us versus the competition. Why do we feel we're going to be one of the bigger guys in this space? Vuzix has these custom processes. You've seen some of the Becker Road video. You can see that we're able to produce in volume. There's volumes worth of finished products sitting on the shelf over there. Let's look at the competition for a minute. There's the semiconductor process equipment guys. What do these guys do? Just what it sounds like. They use semiconductor equipment to process their waveguides, and that all assumes they start on a 300 mm format or a 200 mm format. These are the size around of the glass substrates. You can see we're using, in this particular case, these rectangular master substrates. We can use almost anything. It doesn't have to be that.
It just happens to fit well with our processes. Most of these guys are using 300 mm. They put them in a rack. The rack gets processed for they get 25 finished 300 mm wafers, of which each one has 12 waveguides. If you put them in a stack and a day later, that piece of equipment maybe could do two runs at best, add up the numbers. Literally, in the materials that they use, by the time it's all said and done, there are hundreds of dollars. The run rates, like I said, ask when you can get your first 10,000 waveguides. They do not have a facility that can crank out the volume yet to meet the needs. We certainly can do that, and it does not cost us hundreds of dollars. It costs us much less than $20.
In fact, the processing cost and stuff is practically insignificant for Vuzix in comparison to what the competition is. We have really good margin models, and we can do the volume today. The guys that are using the semiconductor models, whether it's imprinting or direct etch, they've got a run rate problem and a volume supply capacity problem that they have not solved yet. There are companies in China today. We've gone to them and said, "I want to buy five pieces, please." "16 weeks, Sam?" "16 weeks just to get five." Nobody's in volume production. When they are, we know what equipment they're running. That equipment will not supply to the volume requirements, nor can it hit the price points, nor can it supply to the yields that are needed. There are the Prismatic models. These are the guys. Again, I hate to mention companies' names.
Let's just call them the prismatic guys for now. In this particular case, they stack up a bunch of prisms in front of your eye, top to bottom, and then they stack up a bunch of prisms on the side that are at an angle that go top to bottom. There is literally, if you think about it, all these little parts that you got to line up. You can imagine putting them in a little box and then gluing them together and getting the coatings on them right. There are hundreds of steps. There is no way hundreds of steps like that will ever compete with what you can do when you have these low-cost processes that Vuzix has developed. You will hear companies using these prismatic-based waveguides. It's going to happen. There is going to be more than one player in this game, like I said earlier.
There are the Holographic models, which have all kinds of shortcomings, not to mention also volume capacity capability issues. Bottom line is we're quite confident we will be one of the winners in this space. There's no doubt about it. The question is just how big of a winner can Vuzix be? Every win that happens out there, every step forward that this industry makes now is only going to get more and more exciting because along the way, Vuzix is going to be participating and will be part of the catalysts that drives our business in this whole industry. We also have our enterprise product line. You guys understand the markets. We've talked about this before.
I'm going to talk particularly about one coming up in the warehousing and picking space because we have built a product that will be starting to ship before the end of this year that is designed specifically for warehouse and warehouse operations. You guys know these guys, this product line, the LX1. It's logistics purpose-built product. This Gizmo has taken probably three years in the making. The M400 has been in many, many warehouses and operations and, like NADRO, being used successfully today. Right now, there's an old dog that's been in the warehousing and picking space for a long time, and it's called voice picking. The idea behind voice picking is you put a headset on. There's a boom microphone that comes down.
You got a list, a pick list that comes up in your ears, and it says, "Pick this from here, do that," and then you're going back and forth. What number? How many again? It's this very long, drawn-out picking tool. Doesn't work well. It's been used for years now. It's called Vocollect. These guys are now reaching this point in time where technology is moving on, and the supply chain are looking for alternatives to pick by voice. This pair of glasses was designed rugged. You could take a pick-by-voice Vocollect pair of headsets and throw them in the corner. This guy, you can do the same. It's rugged. It's tough. It's got a 10-hour battery in it. You put it on, and the whole shift, even if you're working overtime for the shift, the batteries don't have to be replaced in it.
It's got a 12-megapixel camera, perfect for the purposes of what they need for this: improved voice recognition, NFC tap-to-pair. What does that mean? A lot of folks, even with the pick-by-voice, end up having a wrist-mounted barcode scanner. So they got the barcode scanner, and they got the pick-by-voice headset on. With this NFC connectivity capabilities, you've got the glasses on. You're now picking by vision, which can include voice at the same time. Even our software today from Mobian, the Mobilium software, will allow voice picking. And so what happens now is you take your wrist scanner, you tap the side of the glasses, and they're already paired, and you're good to go. There's no screwing around. Glasses on, boom, you're paired to your scanner, and you're out picking within seconds. Even login is so much simpler with this. With the Vocollect login, it's a voice login.
You got to put your password in by voice, and you can't even see what you put in so far. This thing is going to be simple. It's fast, and it's going to be the next generation of picking solutions for replacements for things like the Vocollect. Quite frankly, warehouse picking and vision picking, this was designed specifically for it. This will get announced and start early demo samples and stuff by mid and summer. It should be shipping before the end of this year. The Ultralite Pro, which we made a big deal out of at the Consumer Electronics Show, we've gotten nothing but accolades from many, many companies that have seen it. Large organizations that want either white labels of it or they want the Vuzix brand on it. They just want to buy them and use them.
These glasses will do everything that these will do, but they have a form factor, and they have optical see-through full-color display systems built into them, and they're using Vuzix's waveguides. This product will also, towards the end of this year, we'll be sampling, and it's one of those products that we have done in conjunction with our friends at Quanta. We have several other things that we're working on with Quanta that will get announced at the Consumer Electronics Show. Sorry, I can't offer more on that right now. Finally, one of the things that we found, and we said this before, software is key. You guys know we bought this company called Moviynt. The Moviynt software is called Mobilium, and there are multiple companies now that are using this thing.
Airbus is live in multiple facilities using—they started with Mobilium running with their handheld scanners. They've now moved from the scanners to our glasses and are thrilled and looking at upgrading throughout the facilities. There are a bunch of other companies now that we have this software in hand, and companies like Airbus are using it. There is the reference platform, the reference solution, the reference customer that makes it a lot easier to open other doors for our own version of the software. What's nice about this is we're not waiting for another company any longer to get their SaaS-based warehouse picking solution operational with our glasses. This software is easy to use. It's SAP certified. It's so simple to go in. A week or two later, you're connected.
You're through all of the IT department's requirements, and you're running under an SAP MRP system in the back end. It's exciting, and it's going to be a great connection to go with the LX1. These guys go hand in glove with each other. Partnerships and customers. Quanta is a great example of probably the pinnacle of a great relationship. This is what it looks like to do business with Quanta. First of all, yay Quanta did a strategic investment in Vuzix. It's a $20 million investment. It was three phases: 10, 5, and 5. The 10 and 5 are done. The last tranche will happen before the end of this year. We're on a great path to success in this regard. It's basically a fait accompli it should be. We've been working with them back and forth on reference designs because they have customers. They're an OEM supplier.
If you look at things like the Apple Watch, Quanta, they're a manufacturer of the Apple Watch or happened, etc. They have a pile of customers: Google, NVIDIA. There's a list. You can go to their website and see it. If you look at the OEM customer list that Quanta has, when you guys all ask, "Well, who's the potential customers?" They manufacture for everybody, practically speaking. That's who they're going to. That's their customer base. We're building reference designs to go after that customer base to supply the smart glasses of the future, whether it's to enterprise customers that might even compete with Vuzix, right on down through to the OEM customers that want high volume to sell into the broader marketplace. They're also doing product production for Vuzix. The LX1 will get produced at a Quanta facility in Taiwan.
Finally, waveguide supply. They are all in the bottom, going to the left. We should be shipping those guys in 2026, a lot, a lot of waveguides to help them fill the demand that they have for their OEM customers down at the bottom. You go to the right of that, the Vuzix box, and go down. We have our enterprise customers and our own enterprise products, and we are supplying waveguides to others. This is one example of a model. Here's another one. This is OEM waveguides. We have customers coming to Vuzix today that need a waveguide. They have everything else. These are companies like Quanta. They know how to build products and Gizmos, or they've got display engines, but they do not have waveguides. These are customers that need waveguides to go in a particular design for their glasses.
I ain't going to be the same pair of glasses as you see here, right? It's going to be the next customer's design style. There will be hundreds of glasses, just like there's hundreds of different car brands out there today. This is going to be a pathway to business for Vuzix that will happen again and again. We do waveguide design. We do waveguide supply. We do it with XYZ customer, and then they are supplying to their OEM customer base. This, again, could be a competitor of Quanta, as an example. This is some of the catalysts that you should see coming to help drive Vuzix's business. As this portion of our business starts to accelerate, there should be more and more of these kinds of partners joining the Vuzix parade. There is the white label side of it.
This is where you have white label customers that want to put their name on something but have it just a customization version of something that already exists. In this case, you might need a custom waveguide design, some product design, and then finished product would go along with waveguides in that finished product. In this case, these guys do not want to manufacture it. They just want to put their name on it. If you look, there is this one, phenomenal relationship out of the gates. We have it. It is wonderful. We have multiples of these other ones already in process. These will all be catalysts that should help to the future business model and where Vuzix is going to drive our business. We are gearing up for waveguide manufacturing and supply. We have a foundation that continues to strengthen to do this.
The Quanta relationship with millions of dollars being invested. It's focused on waveguide supply, chain, and product design and manufacturing. Vuzix has a proven factory that can produce waveguides in volume. The reason why we got the second and we'll get the third tranche is because we can hit the targets for high volume manufacturing. It was nice when our friends visited and to see their smiles on their face when they saw the performance of what was happening on the plant floor. We have a growing number of opportunities in logistics and warehousing. There's remote support. All those other applications are there, but the bigger portion of the business that we can see unfolding is around supply chain. We have an increased presence in OEM programs with prime defense contractors and others and an ongoing focus on cost and product optimization.
When I say cost here, I'm talking about the operational cost to run Vuzix. We're very cognizant of the fact that we need to be conservative. We need to put the dollars into where the real fastest, lowest hanging fruit business is, and we're focused, you can tell, a big focus on the OEM and the waveguide side of our business today. Key takeaways from the presentation: AI is a killer app. It's going to completely change this industry. Vuzix is strongly positioned to become a leading supplier in the unfolding multi-billion dollar smart glasses market. We have industry-leading waveguide supply capabilities. We have the most competitive enterprise industry products in the space today. We have deep industry knowledge. We have large revenue potential at scale. We have an incredible intellectual property portfolio, and we have a flow of expected catalysts coming for the company.
2025, the rest of the year in 2026, it should be very exciting for Vuzix and for the rest of the industry. Thank you very much.