Overview: In Q3 2024, global VR headset shipments declined 4% year-over-year (YoY) and 16% quarter-over-quarter (QoQ) . The YoY decline was primarily caused by a sharp reduction in the tethered VR segment. In contrast, the standalone VR segment recorded 14% YoY growth. Shipments of Meta’s Quest 3 experienced a sequential decline, falling short of expectations. Meanwhile, Apple’s Vision Pro showed a modest recovery following its international launch.
In Q3 2024, the YoY decline in global AR smart glasses shipments widened to over 30%. The primary driver of this decline was weak sales of waveguide-based products, which saw a YoY drop, largely due to sluggish performance from INMO’s glasses. The market's underperformance this quarter was in line with our expectations, as we had previously warned of potential weakened demand in this segment during our last report update.
Despite the lackluster performance in both the VR and AR smart glasses segments during the third quarter, the period marked a pivotal moment for the industry, drawing significant attention within the tech sector. Key events and developments included Meta’s launch of the Quest 3S and Orion AR glasses, Snap’s unveiling of the Spectacle’ 24 AR glasses, the international launch of Apple’s Vision Pro, and Pico’s introduction of the Pico 4 Ultra. Detailed analysis of these events and product launches are provided in the report.