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Virtual reality (VR) has made significant progress in the consumer market as major technology companies roll out competing products. According to the global market research firm TrendForce, the 9 million out of the estimated 105 million units wearable devices shipped this year will be VR-based products. Gaming has emerged as the first major consumer application for the VR technology, said TrendForce analyst Ariel Chen.
Global shipments of LCD TV sets in the first quarter of 2016 totaled about 48.32 million units, according to the latest report by WitsView, a division of TrendForce. This figure represents a 20.9% quarterly decline and also a 6.3% year-on-year drop. In addition to first quarter being the off season in the U.S. and Europe, the uncertain global economic outlook and the saturation of the Chinese TV market have put significant pressure on the overall LCD TV shipments.
Global market research firm TrendForce reports that the worldwide smartphone shipments in the first quarter of 2016 totaled 292 million units, down 18.6% from the previous quarter and a year-on-year decline of 1.3%. The decrease was mainly attributed to market saturation. Leading brands such as Samsung and Apple no longer have the same growth momentum as before, so the overall shipments depended on contributions from Chinese brands and rising demand in India and other emerging markets.
After experiencing decline in end market demand last year, consumer electronics vendors now attempt to improve their profitability via differentiation. The PC gaming market is currently one of the niche segments that have huge opportunities. Thus, an increasing number of electronics brands are aggressively establishing themselves in the gaming PC hardware market. Part of their motivation comes from the rise of VR devices, which are expected to generate demand for new and better hardware.
The global smartphone demand has been stagnant since the fourth quarter of 2015. All branded vendors therefore have lowered their shipment targets, and the entire market spent about three months on channel inventory digest. Avril Wu, smartphone analyst for the global market research firm TrendForce, said the stock up of Chinese branded smartphones started to pick up in the middle of February, as the inventory adjustment period came to an end.
