There is also still a lack of content and killer use cases for the product, an issue Xu said needs to change before the product category reaches a wider user base. The CEO added that this begins with good hardware.
"We need a platform, we need an ecosystem to improve the experience because we don't have any content yet. But in order to have the developers getting excited ... you need to have good hardware to begin with," Xu told CNBC.
Xu said the company is expecting to sell 500,000 units of its previous products in 2025, roughly doubling the figure of this year.