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In this week’s edition, we analyse the most expensive course correction in tech history and what it signals for the future of AI hardware. We also break down the stark cost-of-living arbitrage between the world's two superpowers.

Now, let’s dive into the insights.

— Insights Team, Rwazi

Less than five years after Meta laid out its vision for a VR-centric future, the "Metaverse" as we knew it is officially dead. Earlier this month, Meta reportedly began laying off 1,000 people in its Reality Labs division, pivoting aggressively toward AI-powered smartglasses instead of the bulky VR headsets that were central to its initial strategy.

In 2025 alone, the Reality Labs division lost $19.2 billion, bringing the total operating losses for its big bet to nearly $90 billion over the past seven years. Despite this, the company seems ready to move on, with no mention of the metaverse in its recent earnings call, even as it braces for another year of heavy losses from the division.

However, the pivot is already showing promise. While VR headsets remain niche, Meta's AI-powered smartglasses, developed with Ray-Ban and Oakley, are seeing rapid adoption. For Meta, this hardware is a Trojan horse: AI glasses will eventually see what you see and hear what you hear, giving the company an unprecedented data advantage for ad targeting.

After years of volatility, the global economy is finding its footing. Global inflation is projected to ease from 4.2% in 2025 to 3.7% in 2026.

However, the global map remains deeply fractured. While major economies like China (0.7%), Switzerland (0.6%), and Italy (2%) are effectively seeing price stagnation, hyperinflation continues to ravage specific regions. Venezuela is forecasted to hit 682.1% inflation in 2026.

This reality means multinational businesses must operate with two distinct playbooks: one for the stable, low-growth West, and another for the volatile, high-risk emerging markets.

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When we analyse cost-of-living data, a startling disconnect emerges between nominal wages and actual lifestyle affordability. While the average monthly net salary in the U.S. ($4,276) is roughly 4x higher than in China ($1,007), the cost of core services in the U.S. erodes that advantage almost instantly.

The price multiplier for basic existence in the U.S. is extreme. Renting a 1-bedroom apartment in a city centre costs $1,747 in the U.S. versus just $559 in China. Basic utilities are 4x more expensive in the U.S. ($210 vs. $51), and internet access is nearly 7x more expensive ($72 vs. $11).

There are exceptions where the U.S. retains an advantage, specifically in commodities and agriculture. Gasoline is cheaper in the U.S. ($3.32/gallon vs. $4.35), as is milk ($4.00 vs. $6.77). But for the modern urban service economy, transport, housing, connectivity, and dining, the U.S. consumer is paying a massive "lifestyle tax" that Chinese consumers are not.

Retail continues to evolve because consumers continue to evolve. The old paradigm of "brand loyalty" is being replaced by "value loyalty." Shoppers today are selective, value-conscious, and ruthlessly efficient as they channel their spending toward the brands that simply "get it" in the moment. If the customer is always right, then retail must always be pivoting.

Success in 2026 now depends entirely on velocity. Retailers can no longer rely on legacy reputation; they must understand how shopping behaviours are changing in real-time.

We are seeing a shift where categories gain momentum not over years, but over weeks. Expectations around convenience and experience have hit a new baseline: if you aren't frictionless, you are invisible.