Some time ago we reported on talks between Asus and Microsoft about a low cost version of the HoloLens device being developed by Asus. At that time it looked as if Asus was trying to jump on the virtual reality bandwagon. During the Q&A session in the most recent earnings report, Asus CEO Jerry Shen was asked what the company is doing in the AR / VR markets.
Source: Asus Earnings Conference 11’2015
According to Asus it is working on AR / VR devices. While he declined to comment any further on what they are doing, he did say that they will most likely announce a device in 2016. While not really saying what they will come out with, he made it appear that Asus is looking at AR and VR as two separate markets, with VR gaining momentum early on. However, Asus believes that in the long run AR will be much bigger than VR in terms of consumer acceptance.
Analyst Comment
Listening to the translation of the Q&A session it appears that Asus maybe working on both solutions right now. For a large manufacturer like Asus that makes perfect sense, as R&D is often seen as hedging against future developments. Nobody likes to be blindsided with a new product category. However, given the talks with Microsoft, I think that there is still a possibility that Asus will first come out with a VR headset aiming at gaming, given the interest of Asus in this market.
Several news outlets were interpreting the answer to suggest that Asus is working on AR instead of VR, but in my opinion they are doing both and there is no decision at this time what products they will come out with and when. Asus is throwing its “hat into the ring” as they know will be important in consumer electronics one day, but they have no clear strategy as to which products and markets they will attack first. This is also evident in that they did not mention these markets during their presentation, but only commented after being asked during Q&A. We just have to wait and see what they will finally decide. (NH)
