CINNO: China's consumer VR product sales increased by 1% year-on-year in the second quarter of 2023

In Q2'23, the sales volume of domestic consumer-grade VR products reached 155,000 units, a year-on-year increase of 1% and a month-on-month decrease of 10%. Among them, the sales volume in April and May showed a downward trend, and the "618 E-commerce Festival" drove the sales volume to rise. Due to product iteration and upgrading, consumers' demand for interactive levels and immersive experience continued to rise, and other reasons, the average price of domestic consumer-grade VR rose to 3,214 yuan in the second quarter. VR products in the future will also add sensors such as VST and eye tracking. It is predicted that the price will rise further, and sales will gradually recover in the third quarter.

CINNO Research Review

From the perspective of the overall market structure, the top 5 domestic companies accounted for approximately 85% of the domestic market share in the second quarter of 2023, a decline of approximately 3% compared with the previous quarter.

01. Pico has an absolute advantage with a market share of 48%, ranking first in sales. It is the most competitive brand at this stage and in the short term in the future. In the first half of 2023, after several rounds of internal layoffs, Pico's domestic sales declined slightly, which also affected the overseas market. With the optimization of internal architecture and the intensive release of new products, sales will recover in Q3'23. From the ranking of best-selling models, the top three are all Pico products, namely Pico 4 256G, Neo3 256G, and the new product Pico 4 Pro.

02. iQUT performed strongly in Q2'23, with sales increasing by 61% year-on-year, ranking second in the industry. With the help of the iQUT platform, iQUT has unique advantages in technology and resources in the content ecosystem. In March this year, it announced a partnership with JD.com, which boosted the online sales of iQUT VR. The MIX VR all-in-one machine was launched in January this year, priced at 3,499 yuan. As of the end of June, the sales of a single model exceeded 18,000 units, second only to Pico 4 pro.

03. DPVR ranked third, with its consumer-grade E4 products performing exceptionally well, accounting for 76% of the brand share. With the advantages of enterprise-grade VR products, DPVR has made a comprehensive layout towards the consumer level, and completed a new round of financing of over RMB 100 million in March. This round of financing will increase investment in core technology and product research and development, and expand its business globally.

04. HTC Vive has always been committed to high-end VR products. In Q2'23, in the price range above RMB 4,000, HTC Vive's market share reached 19%, ranking first. HTC Vive actively increased its investment in software ecology, focused on experience, and applied metaverse-related technologies to commercial fields such as training, learning and education, architecture, and industrial design, which further promoted the conversion of enterprise users to consumer purchases.

05. NOLO actively cooperates with the three major operators, and its sales volume quickly climbed to the fifth place. NOLO, China Mobile and Qualcomm jointly released the first domestic all-in-one VR machine CM1, which is currently sold in many offline business halls, with the price threshold reduced to one or two thousand yuan, meeting consumers' demand for entry-level VR products.