Fun with Data – VR

Fun with Data – VR
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Again 2020 has proven to be an odd year for CE, with some segments seeing extraordinary growth and others seeing significant reductions.  One area that did not fare well was VR (Virtual Reality) where according to recent data, saw a 22.1% drop in global VR sales last year, along with a ~10% drop in shipments.  But have no fear, that same data source predicts that VR will find its legs again in 2021, almost clawing its way back to 2019 levels, with 25.5% growth projected for this year and high growth rates through 2024.  Based on the stay-at-home situation presented to consumers in 2020 one would have thought VR would have seen growth similar to gaming monitors, however it seems that the hardware portion of the VR equation faced availability shortages as other, perhaps more profitable hardware demand took precedence with suppliers.  While we find that a hard explanation to justify such a drop in sales, we do note that as 2020 developed those priorities became more obvious and meaningful throughout the supply chain.
Much optimism as to VR growth is the result of Facebook’s (FB) $299 pricetag for the Quest 2, which likely generates little or no profit to the company but is said to be priced right in the middle of an inflection point that consumer VR surveys indicate will spur unit volume.  Said to be part of Facebook’s long-term view of the VR market, the company is adding suppliers as the device begins circulation, but speculation about VR consumer price points has been around since early devices were released, with little justification.  All in we take any estimates relating to VR sales with a large grain of salt and expect that it will still take some time to get VR resolution high enough that even those with the weakest stomachs can handle such headsets.

Global VR Revenue - Source: ARtillery Intelligence