Korea / Special Sits, Pairs, Index Rebalancing, Clepsydra Capital

Sanghyun Park

I investigate special situations, pairs, and index rebalancing trades in Korea.

Korea / Special Sits, Pairs, Index Rebalancing

Thematic (Sector/Industry)

South korea Consumer discretionary / Thematic (Sector/Industry)

Virtual Reality (VR) is not really taking off. We had and we are still having high expectations on VR, but the actual sales numbers are quite disappointing. VR was one of the items that went flop in the recent year-end hot sales period. In fact, no VR company seems to have actually turned profits. So, many of us are questioning about the survival (or sustainability) of VR business.For instance,Sony’s PlayStations VR (PS VR) created a huge hype, but Sony achieved only less than 30% of its initial sales target for FY16. Google’s Daydream is no exception. Google initially aimed to sell 450k units of Daydream for FY16, but the actual sales number was estimated at about 260k units. Well, Samsung’s Gear VR showed a relatively better result, but we should note that most of Samsung’s Gear VRs were given to Galaxy Smartphone buyers for free. So, Samsung Gear VR’s sales number is not really relevant. Another examples are Oculus’ Rift and HTC’s Vive. Both were expected to record 300-400k units in sales, but neither has so far achieved this target. It is estimated that the sales number of both devices was only around 100k.These numbers may not be accurate. But what seems certain is that the growth rate of VR market is not meeting our high expectations.

Virtual Reality (VR) is not really taking off. We had and we are still having high expectations on VR, but the actual sales numbers are quite disappointing. VR was one of the items that went flop in the recent year-end hot sales period. In fact, no VR company seems to have actually turned profits. So, many of us are questioning about the survival (or sustainability) of VR business.For instance,Sony’s PlayStations VR (PS VR) created a huge hype, but Sony achieved only less than 30% of its initial sales target for FY16. Google’s Daydream is no exception. Google initially aimed to sell 450k units of Daydream for FY16, but the actual sales number was estimated at about 260k units. Well, Samsung’s Gear VR showed a relatively better result, but we should note that most of Samsung’s Gear VRs were given to Galaxy Smartphone buyers for free. So, Samsung Gear VR’s sales number is not really relevant. Another examples are Oculus’ Rift and HTC’s Vive. Both were expected to record 300-400k units in sales, but neither has so far achieved this target. It is estimated that the sales number of both devices was only around 100k.These numbers may not be accurate. But what seems certain is that the growth rate of VR market is not meeting our high expectations.

Samsung Electro Mechanics Co, Ltd. (009150 KS)

Hyundai Home Shopping Network (057050 KS)

Hansae Yes24 Holdings Co, Ltd. (016450 KS)

Golfzon Newdin Holdings Co., Ltd.  (121440 KS)

Samsung Electronics Pref Shares (005935 KS)

Stark Reality of VR Market - Telcos Are Pushing VR for 5G in Korea