At HTC’s recent telephone earnings conference, HTC confirmed that every Vive’s sales can bring profits, and actual sales figures are “more than†in most of the 140,000 reports.
Due to the recent sluggishness of the smart phone business, HTC will easily use the relatively new VR business as a way out to restore its glory and achieve financial growth. According to the Third Quarter Investor Earnings Report, the company stated that "the HTC Vive system has achieved continuous sales growth in the consumer and corporate markets."
1. "Much more"
Analysts and investors hope that HTC will announce more sales and growth information on Vive in the Q3 financial report. Like other competitors in the VR field, HTC refused to release detailed sales data. Some people had previously estimated that the sales volume of Vive has reached 140,000 units based on the sales volume of Raw Data. This has also been reported by various VR media. In this regard, HTC Chairman Wang Xuehong subsequently responded that actual sales far exceed this figure.
In response to an analyst from Arete Research, HTC Global Business Manager and Chief Financial Officer Zhang Jialin said: “Yes, I think this is a good question because I also read (about 140,000 sales figures). In fact, he talked with (HTC Chairman) Wang (Xue Hong)."
“I don’t know how the 140,000 figure came from. Wang (Xuehong) responded to this question, and I can confirm to you here that her claim is true. Basically, the actual figure is higher than 140,000. It's more than that number,†Zhang Jialin continued, “but I can't give you an accurate figure. I suggest that you don’t refer to this figure. It seems to be based entirely on something that we don’t even know where we’re coming from. Out."
Zhang Jialin’s response seems to be merely an embarrassing statement that he hopes to reassure investors. On the one hand, they want to tell investors that sales are better than the 140,000 reported, and they do not want to disclose actual data. In this regard, Zhang Jialin explained the reasons.
He said: "You can see from the HTC's point of view, we are also interested in knowing (competitor's sales figures) and vice versa, they all want to understand the actual sales figures of HTC. That's why I won't disclose (The exact number of reasons) because this is the best protection for shareholders in the long-term interest of HTC."
Zhang Jialin said at the telegraphic earnings conference: “What I can tell you is that we, as I said at the previous conference on telegraphic earnings, are as satisfied with the sales of Vive as they were at a telegraphic conference. I am very happy to tell you that we are satisfied with the sales situation in the previous quarter. We look forward to a good one. I do not mean the future, but I hope to have a good and pleasant Christmas sales season."
Zhang Jialin compared the current VR Grand View to the "horse race era," but he also admits: "I'm not sure this is an accurate and appropriate description." Finally, he said that this part of the company's business is "a rapid expansion, exciting The beginning of the era ".
Profitable sales
Zhang Jialin confirmed another interesting detail at the same time. The company’s Vive sales will bring profits.
Perhaps a device priced at $800 would be a profitable product, but HTC's perception of profit is not as false as previously stated by Oculus. Oculus had previously stated that the $600 Rift was sold at a cost (no profit). Both heads have similar components and requirements. When you add the $200 Touch controller, the price of the two systems is similar.
Due to lack of more details, it is difficult for us to confirm HTC's claim at present, but there are several ways to try to interpret it. First, HTC may be more efficient in production and sales, because HTC itself has a wealth of hardware production and sales experience compared to Oculus. Another possibility is that the sales of each piece of equipment may not be profitable at the beginning, but they finally make a profit after reaching a certain scale effect, so on average, it is concluded that “every Vive’s sales can bring profitsâ€. . Like Oculus, they may not be able to sell at cost, or if they have the same operational efficiency as HTC, Oculus does not even need to do so at the beginning.
Of course, the question remains unanswered. In the end, how much profit did HTC make from sales of Vive? The price of $800 is very high, especially in the early stages of development. If VR needs to be widely popularized, its price will undoubtedly need to be Greatly reduced.
Regarding the issue of mainstream pricing, investors also want to know the future price trend of Vive. Of course, HTC is not prepared to provide more details, but Zhang Jialin shared: "So we do think we have a good channel (in order to reduce the price of the consumer version in the future. This is HTC's long-term game." Machines completes $7.5 million Series A financing
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