CINNO Research: In the third quarter of 2024, domestic XR market sales totaled 108,000 units, a quarter-on-quarter decrease of 35%.

CINNO Research Chief Analyst Zhou Hua stated that in the overall market scenario, the domestic XR market is expected to see a sales volume of 108,000 units in the third quarter of 2024, a decrease of 35% compared to the previous quarter. Of particular concern in the segment market is the performance of consumer-grade VR devices, with sales of 46,000 units showing a significant decrease compared to the previous quarter. This challenging situation is mainly due to the lack of high-quality VR content and applications, as well as the high cost of development, which has long troubled developers. This not only affects the market acceptance of VR devices but also slows down their popularization. As a result, some brands have chosen to delay the release of new products to adapt to the current market environment. Consumer-grade AR sales reached 62,000 units, surpassing VR market sales for the first time, but showing a 13% decrease compared to the previous quarter. This can be attributed to the relatively limited functionality of AR devices, the failure to expand application scenarios as expected, and limited intergenerational innovation changes, leading to a gradual decrease in consumers' motivation to upgrade, causing a bottleneck in the growth of AR device sales in the third quarter. In terms of pricing, the introduction of new products by Apple and BirdBath briefly raised the overall average selling price (ASP) of VR devices to over 5,500 RMB. In contrast, the price trend of AR devices showed a downward trend, with the overall ASP decreasing to around 2,400 RMB. In the third quarter, leading brands such as Leimen, Ruochi, etc., adopted new product iteration and price reduction strategies on e-commerce platforms to attract consumers. Furthermore, with leading brands like Leimen actively releasing more affordable new products, the price of AR devices will further decrease, laying the foundation for AR devices to become mass-market products. In the consumer-grade AR market brand rankings, Leimen remained in the top position in the third quarter, with the Air 2 and Air 2S products selling well due to price reductions. Additionally, Leimen introduced the new Air 3 with a selling price of only 1,688 RMB, mainly attributed to its use of BirdBath's screen for the first time. For existing customers, the third anniversary champion version of Air 2 is priced at only 1,399 RMB. In an attempt to further expand the market, Leimen has adopted a low-price strategy to lower the entry threshold for AR products. In a competitive market, XREAL maintains its second position in overall sales due to the contribution of XREAL Air 2 and Air 2 Pro. Additionally, through collaboration with Shanghai Rongtai Health Technology Corporation, XREAL is exploring more offline scenes and playing an active role in enhancing user experience. The brand VITURE is implementing a strategy of expanding from overseas to the domestic market, successfully jumping to third place in the quarter with the excellent performance of its flagship product VITURE Pro released in August. In the domestic consumer-grade VR market brand rankings, PICO 4 Ultra, a new product in August, maintained its top position in sales, leading BirdBath. Dapeng, on the other hand, ranked second by using innovative integration of VR headsets with content, successfully penetrating multiple application scenarios such as offline entertainment, education, and healthcare. Meta followed closely, ranking third in sales in the third quarter. For the overall XR market, in terms of screen display technology, Micro OLED accounted for 56% of the share in the third quarter, with continued stable growth surpassing Fast LCD. This is mainly due to Japan's Sony occupying more than 90% of the market share. Domestic manufacturers such as BirdBath and BOE are accelerating their layout, achieving breakthroughs in cost control and reducing defect rates, leading to a continuous rise in the market share of Micro OLED screen display technology domestically, and a more extensive development within China. The share of Micro LED remained stable compared to the previous quarter, with almost all of it coming from JBD. The sales share of Fast LCD significantly decreased, accounting for only 36%. The sales shares of Japanese JDI and Sharp both declined, while BOE in China is actively developing 4K ultra-clear display screens to expand the market, resulting in a noticeable increase in sales volume. The sales share of Pancake optical solutions in VR devices continued to rise, reaching 67% in Q3'24. Technologically, in addition to the advanced 3P Pancake solution used by Vision Pro and the multiple high-performance Pancake opto-mechanical modules introduced by Gore, Hupan Optics also showcased a new Pancake optical solution at the Optics Expo, capable of achieving a wide viewing angle of over 120 on a 1.31-inch Micro OLED micro-display screen. Additionally, emerging design manufacturers like Nanjing Baituo Vision offer cost-effective 3P Pancake technology solutions that combine high definition, high yield rate, and mass production capabilities, exhibiting competitive performance, weight, and price compared to major manufacturers. Particularly for high-end XR and MR products, these module solutions offer extremely high cost-performance customized solutions, highlighting their advantages. In the AR device optical solutions, although the BirdBath solution still needs improvement in thickness and weight, it continues to dominate sales. BirdBath introduced the first BB binocular optical solution module, paired with its latest 0.6-inch Micro OLED screen, providing a pixel density greater than 50 PPD, a module thickness of only 17mm, and a weight of only 8.5 grams, making it ideal for lightweight devices like AR glasses. In terms of financing, there were 39 financing activities in Q3'24, with 26 related to VR, mainly concentrated in overseas markets, especially in the United States and Japan. These financing activities mainly involved vertical applications such as VR education, VR gaming, VR healthcare, and VR training, with overseas investors holding optimistic views on the potential and market prospects of VR technology in these areas, while domestic development lags behind. Notably, in the third quarter, 51WORLD, as a domestic digital twin technology provider, rarel...In the hardware industry, companies like Hongshi Smart and Imoo have all reached funding levels of hundreds of millions of yuan. The domestic AR hardware market is entering a period of rapid development, with investors showing high recognition for AR hardware companies with innovative technology and market potential. Manufacturers along the XR industry chain no longer simply pursue sales growth, but are shifting towards a more refined layout, dedicated to promoting the continuous improvement and development of the entire industry."Bonjour, comment a va?" "Hello, how are you?"