According to IDC, worldwide shipments of AR and VR headsets continued to rise with a total of 2.3 million units shipped in the first quarter of 2017. IDC is also forecasting triple-digit growth for the full year of 2017 due to the long list of new products scheduled to ship in the second half of the year.
VR headsets accounted for more than 98% of the headsets shipped during the first quarter of 2017. Of this number, around two-thirds of the headsets were screenless viewers, such as the Samsung Gear VR and the Google Daydream View. The rest of the shipments were tethered VR headsets, such as the HTC Vive, Oculus Rift and Sony’s PSVR. Compared to the same quarter last year, AR headsets had a rise of 77.4%, as new products began shipping and existing headsets expanded distribution to additional countries.
Tom Mainelli, VP of devices and AR/VR, believes it is very early in terms of AR headsets, with the vast majority of products shipping into the market focused on getting hardware into the hands of developers. He expects that most consumers will experience their first taste of AR through the cameras and screens of their existing mobile devices and tablets.
Samsung had the highest shipment volumes in the market with its Gear VR headset. Samsung’s large distribution network and its partnership with Oculus has allowed the company to take the lead in the market, although it was the only company in the top five to see an annual decline in shipments. IDC believes that this is temporary due to the absence of their Note line of phones.
Sony has only shipped its PlayStation VR headset for two quarters, but the company has already found its way into the top five. With a large installed base of PlayStation 4s, the company is likely to remain a leader in the near term.
HTC Vive has provided a high-end solution for those willing to pay a premium for the best current experience. HTC has also enjoyed success with VR cafes which have been opening up around the world, particularly in Asia. HTC has also launched a commercial-friendly app store and subscription model.
Facebook was among the first premium products in the market with the Oculus Rift. With the addition of touch controllers, improved room-scale tracking, and a price drop from $599 to $499, IDC believes Oculus will continue to provide a compelling alternative for VR enthusiasts.
TCL also made the top five with the Alcatel VR headset that it bundles with Alcatel Idol 4/s smartphones. However, the company faces challenges due to a limited platform that largely relies on existing Cardboard apps and Littlstar to provide apps, games, and videos for their headset.
Shipments of simple headsets that do not have any technology built in are excluded
Worldwide AR VR Headset volume dropped back from Q4, but was well up on Q1 last year.
