GoerTek accelerates its "de-Appleization", and Meta Universe has become the "new main force"!
Goertek de-apples meta-universe
Goertek urgently needs a new direction to weaken the company's long-term over-reliance on Apple. This year's explosion of Meta Universe has brought hope to the company.

In the first three quarters of this year, GoerTek's revenue from VR/AR has increased significantly, making it independent of Apple's smart hardware business segment to account for more than 40% of its revenue, becoming the new main force of the company's revenue.

The enthusiasm of Meta Universe brings opportunities to the consumer electronics industry chain. In addition to Goertek, a number of consumer electronics companies have stated that they have deployed Meta Universe related product businesses, including Lens Technology and Anjie Technology.

At present, Metaverse is still in the early stage of development. What impact will the entry of many companies have on the development of the industry, and for these companies, is it the right time to enter?

VR/AR business changes the income structure of Goertek

Goertek was established in 2001 and its main business includes precision components business, intelligent acoustic machine business and intelligent hardware business. The main products of the precision components business include micro speakers, motors, wireless charging devices, antennas, micro microphones, sensors, precision structural parts, etc.; the main products of the intelligent acoustic machine business include smart wireless earphones, wired/wireless earphones, etc.; the main smart hardware business Products include VR virtual reality/AR augmented reality products, smart wearable products, etc.

In 2010, Goertek entered the Apple supply chain, supplying electronic acoustic products such as acoustic components and wired headsets for Apple. In 2019, it began to manufacture Apple's wireless headsets. In the past ten years, GoerTek's reliance on Apple has continued to increase. In 2016, Apple's revenue exceeded 20%, and in 2020 it accounted for nearly 50%.

Screenshot from Goertek's 2020 Annual Report

Too much reliance on Apple makes Goertek's income uncertain, so the company is actively looking for new business directions. In 2020, Goertek's intelligent hardware business increased by 107.34% year-on-year, which was higher than the precision components business and intelligent acoustic machine business. This year, the meta-universe exploded, making the company's intelligent hardware business a year-on-year growth of 119%, which benefited from The company's VR virtual reality business revenue increased.

Screenshot from Goertek's 2020 Annual Report

Industry insiders believe that Goertek has a first-mover advantage in the field of Metaverse. As early as 2016, the company became the exclusive agent of Sony PSVR and Oculus Quest products, and currently accounts for 70% of the global mid-to-high-end virtual reality headset market. Moreover, the company is a foundry of top companies such as Microsoft and Facebook, and has customers and technology accumulation in VR/AR. There are indications that in the future, GoerTek shares will be expected to benefit from Meta Universe, develop new business directions, and weaken its dependence on Apple.

Consumer electronics manufacturers lay out early to seize the opportunity

In addition to Goertek, Lens Technology and Anjie Technology have also stated recently that they have already carried out a meta-universe-related layout.

Lens Technology is mainly engaged in high-end window protective glass panels, new exterior protective materials, electronic functional components, and complete machine assembly. Products are widely used in smartphones, smart wearables, tablets, laptops, new energy vehicles, smart medical care, and smart homes. Home appliances and other fields.

The company said a few days ago that the company has deployed the research and development, design, production and customer resources of the meta universe concept products. As early as 5 years ago, Lens had started the R&D and expansion of products and technologies in the VR/AR field.

According to industry sources, Lens Technology has established a VR/AR research and business department to strengthen research and module design in the fields of acoustics and optics. Lens Technology said it will continue to increase the business scale of smart wearable devices such as VR/AR in the second half of this year.

Anjie Technology’s main products include precision functional devices, precision structural parts and modules, which are used in smart phones, laptops, tablets, all-in-ones, VR/AR, wearable devices, smart homes, new energy vehicles, and information Smart terminals such as storage devices and 5G communications.

Anjie Technology has recently revealed the company’s layout in the field of Metaverse many times. Its VR/AR-related product business involves Metaverse. The company mainly supports precision functional devices and precision structural parts for Facebook's (renamed "Meta") Oculus products. At present, the company has already supplied mass production for Oculus Quest2, and the company will provide more products for the next generation of Oculus.

The VR/AR industry has gradually achieved breakthroughs in the past few years. Since the beginning of this year, the software and hardware markets involved have experienced explosive growth. The above-mentioned early deployment companies have benefited significantly. At present, Metaverse is still in the early stage of development. VR is an important part of Metaverse. In part, companies that have deployed early in this field are likely to seize the opportunity again in the future.

The entry of many companies is beneficial to promote the development of the metaverse industry

Although the VR/AR industry has ushered in a wave of growth, it is expected that it will be a long time before Metaverse truly realizes large-scale applications. First of all, it needs to be improved technically. For example, the core VR equipment of Metaverse has the highest resolution at this stage. 4K is far from the clarity of the human eye, and it will cause the device to become hot after a long time. Another issue is cost. The current price of a VR device equipped with a high-end display and chip is nearly 5,000 yuan, which is still too high for ordinary users, which is not conducive to large-scale commercial use.

Metaverse involves many aspects of technology. In addition to VR/AR devices, there are also technologies such as AI, chips, communications, cloud computing, and the Internet of Things. It is conceivable that companies that master these technologies can occupy the market in the field of Metaverse in the future. For example, In terms of chips, many manufacturers have entered the game. Qualcomm Snapdragon XR2 is currently widely used in VR and AR hardware products. According to statistics, there are more than 50 VR and AR devices based on the Snapdragon platform, including Oculus Quest series, HTC VIVE, Pico, etc.

In addition, chip manufacturers such as MediaTek, Nvidia, and Samsung have also reported about the layout of the meta-universe. With the entry of leading chip manufacturers, it is expected that more chip manufacturers will follow up in the future, and more excellent underlying technology companies will join. In terms of technology The greater the chance of achieving a breakthrough, the more it can promote the further development of the entire industry