A potential winner in the meta-universe era-Wifi industry chain

Wi-Fi 6/6E/7 is the key to the wirelessization of Metaverse devices. Meta expects that within 10 years, Metaverse users will reach 1 billion people. The Wi-Fi supply chain will significantly benefit from this trend.

1. Wirelessization is the key to improving the user experience of Metaverse and promoting the growth of hardware. Meta has shipped 9 million VR devices in 2021, and the most popular Oculus Quest series all use the latest Wi-Fi specifications to support wireless technology Oculus Air Link.

(1) At present, one of the biggest challenges in the growth of head-mounted display devices is that they need to be connected to a PC by a wired connection, which is inconvenient to use. We believe that wireless can improve the convenience of using head-mounted display devices and improve the immersive experience.

(2) Meta is the world’s largest supplier of VR devices, with shipments expected to reach 9 million units in 2021. Meta launched Oculus Air Link in 2Q21, allowing the most popular Oculus Quest series to connect to a PC via Wi-Fi instead of a wired connection. Since Quest 2 launched in 2020 is equipped with better Wi-Fi 6 (vs. Wi-Fi 5 of Quest 1 in 2019), only Quest 2 can provide an excellent display update frequency of up to 120Hz through Oculus Air Link Use experience.

(3) Oculus Air Link requires Wi-Fi to support 5GHz, so Wi-Fi 5 must be supported at least. Wi-Fi 6 is significantly better than Wi-Fi 5 in terms of transmission speed and power consumption, so Meta’s latest Oculus Quest 2 supports Wi-Fi 6. Wi-Fi 6 helps Oculus Air Link operate more stably, and allows the screen update frequency to be up to 120Hz (Wi-Fi 5 is 72Hz or 90Hz).

(4) In order to improve the wireless experience and boost shipments, most wireless headsets will be equipped with the latest Wi-Fi specifications. We predict that most of the wireless headsets launched in 2022 will be equipped with Wi-Fi 6/6E.

2. If the head-mounted display wants to improve the wireless experience, it must adopt the latest Wi-Fi specifications. In 2022, the new head-mounted displays of Meta, Apple and Sony are equipped with Wi-Fi 6/6E.

(1) According to our survey, less than 5% of mobile phones and laptops currently on sale support the latest Wi-Fi 6. The reason is whether mobile phone and laptop users support the device Wi-Fi 6 feels no sense. However, if the head-mounted display device wants to optimize the wireless experience, it needs to support the latest Wi-Fi specifications.

(2) The connection requirements for high bandwidth, update frequency, and low latency of head-mounted display devices are significantly higher than those of smartphones and notebooks. Therefore, if we want to improve the wireless experience, we predict that most of the new head-mounted displays will support the new Wi-Fi specifications.

(3) Wi-Fi 6/6E/7 and 5G millimeter wave are the most suitable connection technologies for head-mounted display devices. Considering the battery life, we predict that within 2-3 years, most wireless headsets will only support the latest Wi-Fi specifications. In 2-3 years, high-end head-mounted display devices will be equipped with the latest Wi-Fi specifications and 5G millimeter waves.

(4) We predict that Meta, Apple and Sony will be the most influential brands in the meta universe device market in 2022. Meta, Apple and Sony will launch new head-mounted display devices in 2H22, 4Q22 and 2Q22 respectively. Both Meta and Apple’s new models support Wi-Fi 6E, and Sony’s PS 5 VR device supports Wi-Fi 6.

3. Meta expects that Meta Universe users will reach 1 billion people within 10 years, and the Wi-Fi supply chain will significantly benefit from this trend.

(1) Meta predicts that there will be 1 billion users of Metaverse within 10 years. Taking into account that Facebook is not the exclusive supplier and replacement needs, we predict that the shipments of head-mounted display devices will reach billions in 10 years.

(2) Since the latest Wi-Fi specifications are the basic requirements for the wireless experience of head-mounted displays, the Wi-Fi supply chain will significantly benefit from this trend in the next 10 years, including Wi-Fi chips, RF front-ends, LTCC and wireless routers .

(3) We are looking at the stock price performance of the Wi-Fi supply chain in the next 10 years.

Posted by:CoinYuppie,Reprinted with attribution to:https://coinyuppie.com/a-potential-winner-in-the-meta-universe-era-wifi-industry-chain/
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