Samsung is now significantly falling behind when it comes to the race for augmented reality or AR and virtual reality or VR devices to the market. This could be due to the company's "obsession" with foldable phones.
Samsung 'Obsessed' with Foldables But Lags in AR and VR Devices
As per The Korea Herald, Samsung could be "obsessed" with foldable phones, but its competitors, which include Apple, Meta, Microsoft, and Sony, are already developing or have launched their AR and VR devices.
Despite the race, it is still unclear whether or not Samsung is actively developing such devices at all. eBest Investment and Securities analyst Kim Gwang-soo stated the company's choices.
Samsung Smartphone Business Slowed Down to Just 0.9% Year on Year
As per Gwang-soo, big tech companies, instead of smartphone manufacturers, are now leading XR devices due to having the necessary content and platforms. This includes Google having Android, Sony having PlayStation, and Microsoft having Xbox.
Gwang-soo noted that it is very risky for Samsung to roll out their own XR devices, leaving them no choice but to stick with just foldable smartphones. With that, according to the story by MacRumors, the growth of Samsung's smartphone business has slowed down to just 0.9% year on year.
Company Remains Committed to Foldables, but Shareholders are Concerned
However, the company still remains committed to the potential of foldable to reignite momentum. However, shareholders are still concerned regarding its perceived preoccupation with certain foldable devices that are now distracting the company from competing with the future AR and VR devices.
Market data currently shows that the AR and VR devices market could increase tenfold in the course of the next three years and would potentially reach a valuation of $300 billion in 2024 when more than 70 million devices would support it.
Apple Believes AR and VR Devices Could Replace the iPhone in Ten Years
In the long term, these devices are expected to replace smartphones and PCs, becoming mainstream IT devices partially. An example of this is Apple's plans for AR and VR devices to replace the iPhone in ten years.
Industry insiders note that Samsung should decide to make its own AR and VR devices as the company still lacks the content and platform to create a cohesive and compelling ecosystem. In an attempt to catch up to the race when it comes to making inroads into the AR and VR market, the company made an overdue investment in DigiLens, a California startup focusing on making AR glasses.
In order to stay relevant, market observers are actually warning that the company might need to find a partner with content or a platform in exchange for chip expertise. An example of these types of partnerships can be seen between Microsoft and Qualcomm.
Related Article: Apple AR/VR Headset's Potential Name | 'Apple Goggles' or 'Apple Vision?'
This article is owned by Tech Times
Written by Urian B.
