The document summarizes findings from a survey of over 4,300 consumers about their wants and needs for extended reality (XR) devices. Key findings include: consumers envision using XR for everyday tasks and are open to various form factors; top desired features are comfort, lightweight design, and multimodal interaction; and there is significant interest in XR with over half willing to pay $300-600 for a device. Early adopters are especially positive and willing to pay more than average for an XR device.

1. What Consumers Want
in Their Next XR Device
Hugo Swart
Senior Director,
Product Management
Qualcomm Technologies, Inc.
@HugoSwart_QCOMOct 3, 2018
Kate Fu
Senior Manager,
Strategy & Analysis
Qualcomm Technologies, Inc.

2. 2

3. 3
Will the
smartphone
become an
XR wearable?
Qualcomm Snapdragon is a product
of Qualcomm Technologies, Inc.

4. 4
XR is here
today, but
it is still in
its infancy
Analogy to smartphones:
XR evolution will take
years…opportunity will
be immense
Technology Phase:
Infancy
Market:
Mostly early adopter
“Prosumers”
Technology Phase:
Rapid evolution
Market:
Surging consumer adoption
Technology Phase:
Maturity
Market:
Worldwide,
ubiquitous use
XR will follow a similar multi-year cycle of sleeker designs,
with tremendously increasing functionality
XR is
here
today
XR by
~2020

5. 5
Healthcare
Marketing &
advertising
Retail
Engineering
Education
Entertainment
XR is the
next mobile
computing
platform
Gaming
Emergency response
Industrial &
manufacturing
Military

6. 66
The past, the present and the future of XR devices
Last 5 years Next 10+ yearsPresent Next 2 years

7. 7
Standalone AR + VR
Install Base by 2023
186 Million
Source: IDC, ABI Research, Qualcomm Technologies

8. 88
Standalone devices are helping to make this happen
Lenovo Mirage Solo
w/Daydream
HTC VIVE Focus
Oculus Go
ODG R9
Shadow Creator
A new category of devices has arrived

9. 9
Devices
How do we make this happen?
HMD Accelerator
Program (HAP)
ISV
Components
ODM
IHV
Ref Design,
SDKs &Tools
KPIVR SDK
Profiles
Advanced
Algorithms
3D
Audio
Foveated
rendering
Scene
Under-
standing
Eye
tracking
6DoF
Hand
tracking
SoftwarePlatform
advantage.qualcomm.com/hap

10. 10
Your Next
XR Device

11. 11
Interviewed over
4,300 consumers
to obtain insights
Use
Cases
Form
Factors
Pricing

12. 1212
Consumers envision using XR in all aspects of life
Eye glasses are ideal for daily use
Everyday Use
• Multimodal interaction
• Easy and intuitive
• Higher quality and truly
immersive in a virtual space
• Provide the right info
when needed
• Smart suggestions knowing
you and your context
• Desire to use all day every day
• Replaces other screens in life
• Design is not intrusive
Enhanced Experiences Informed Decisions

13. 1313
Use cases that help save time and cost
35% Travel
Virtually visit any place
around the world as if you
are physically there
AR
25% Communication
Communicate with people in
different locations as if they are
there with you in the same space
VR
Top Individual
Use Cases
28% Shopping
Virtually visit a house/apartment,
hotel room, vacation spot, or
view products before buying
30% Assistance
Enhance your vision to
clearly see in dark or poorly
lit environments
30% How-To
Learn new skills or techniques
(e.g. foreign language,
making/fixing things)
30% Design
View a room or space with virtual
elements to see what it looks like
with a new design

14. 1414
Health & wellness are priorities
31% Travel
Virtually visit any place
around the world as if
you are physically there
AR
29% Education
Read or watch immersive
educational content (e.g. solar
system, historic events, geography)
29% Health & Wellness
Watch virtual reality videos for stress relief,
meditation, and physical therapy
VR
Top Individual
Use Cases
34% Health & Wellness
Passively monitor and record what you
eat/drink, your vital signs, blood
glucose/sugar levels, etc. Get alerts when
you are out of normal range
34% Assistance
Provide turn-by-turn navigation,
routes, time, distance, speed, and
warnings when you drive, bike, ski or
engage in outdoor activities
31% Medical Treatment
Use 3D images of your
body/injuries/symptoms to facilitate the
discussion between you and your doctor
about treatments

15. 15
Comfort is required and style is highly desired
Top
preferences
Sleek, comfortable,
light weight, and compact
Women are more likely
to ask for stylish design
and additional color options
Country
differences
China is open to
stand-out designs
It helps create an image of
tech savviness/trendiness
Compact, small and
comfortable to wear with
very strong capabilities.
(China)
“ „
I would definitely wear the
glasses at home or in public
because they are low profile
and people would not notice
that they are anything other
than regular glasses.
(US)
“
„

16. 1616
Form factor does not appear to be a barrier to adoption
Top 5 Preferred Models for Everyday Wear
321 4 5

17. 17
2+
pairs
58%
1
pair
31%
None
11%
Half of
potential
buyers would
purchase at
least 2 pairs
Number of XR glasses buyers would purchase
2+
pairs
45%
1 pair
54%
None
1%

18. 18
Ideal XR
Portfolio
Top choice
for 1st
pair
Top choice
for 2nd
pair
Regular eye
glasses
Helmets/
Goggles

19. 19
Multimodal interaction is preferred over single mode
Voice is mandatory, supplemented by at least one other mode
65% consumers request
2+ interaction modes
Eye tracking/blinks
(26% vs. 36%)
Tapping the frame
(28% vs. 35%)
Gesture in
front of glasses
(19% vs. 33%)
Head movements
(18% vs. 33%)
Feet/leg movements
(15% vs. 23%)
Controller
(16% vs. 25%)
Gesture on
the side
(18% vs. 32%)
Voice
(39% vs. 30%)
vs.

20. 20
XR interest
is high
* These percentages are top 2 boxes of a 7-point scale
“I get more excited for the future
of these devices. I can't wait to
see what will come of these!!”
Overall Appeal*
43%
52%
Likely to Purchase*
51% 52%

21. 2121
26%
28%
33%
34%
38%
Control by voice
Night image sensors to
help see in the dark
Looks like a regular
pair of eyeglasses
Light weight
Comfortable
32%
32%
33%
34%
34%
Night image sensors to
help see in the dark
Sensors to detect/monitor
motion, environmen and
your health
The style, UI, and content
can be personalized
Artificial intelligence
Can replace other
screens
Top Factors to Purchase XR
Comfort and capabilities
drive XR purchase
Statistically significant at 95% level compared to the other country










22. 2222
Pricing Willing to Pay for XR Concept
Solid market potential
for each tier
49%
29%
22%
27%
38%
34%
<$299
$300-$599
>$600
Average price ~$450

23. 23
A quarter
of consumers
could be the
first movers
on XR
14%
11%
26%23%
12%
14%
Budget
Shopper
Laggard
Mainstreamers Next Followers
Tech
Enthusiasts
Trendsetter
Early
Adopters
Total N=4,028

24. 24
44%
56%
Tech Enthusiast Trendsetter
Top Use Case
Watch immersive
educational content
Create 3D virtual
artwork/designs
Purchase Behavior Purchase Behavior
Buy
flagship
Buy
cheapest
Don’t worry
about price
Value for
money
Try new
brand
Buy from my
usual brand
57% 37
Mean
First one to buy First one to buy
View a 3D model
of a building site
Virtual travel
Virtual office
Provide turn-by-turn
navigation
Male
AGE
78%
22%
71% 34
MeanMale
AGE
Top Use Case
Buy
flagship
Buy
cheapest
Don’t worry
about price
Value for
money
Try new
brand
Buy from my
usual brand

25. 2525
Early adopters react very positively to the XR concept
~80% found XR very appealing - ~2X more than others
Willing to pay $100 more than average (~$450)
~80% with strong purchase intent - ~2X more than others
Bulkier designs are not a barrier
3 use cases can reach 75% of early adopters

26. 26
Vision Correction
Expands market to
glasses wearers by
removing the hassle to
bring multiple glasses
Versatility & daily use
Help justify the premium with
the assistance for activities
throughout the day
Comfort & weight
Ensure everyday/long-time
wear and are the first bar to
pass for adoption
Tiered Portfolio
Addresses buyers’ interest in
all price tiers with different
capabilities
XR has high adoption potential

27. Follow us on:
For more information, visit us at:
www.qualcomm.com & www.qualcomm.com/blog
Thank you!
Nothing in these materials is an offer to sell any of the
components or devices referenced herein.
©2018 Qualcomm Technologies, Inc. and/or its affiliated
companies. All Rights Reserved.
Qualcomm is a trademark of Qualcomm Incorporated,
registered in the United States and other countries. Other
products and brand names may be trademarks or registered
trademarks of their respective owners.
References in this presentation to “Qualcomm” may mean Qualcomm
Incorporated, Qualcomm Technologies, Inc., and/or other subsidiaries
or business units within the Qualcomm corporate structure, as
applicable. Qualcomm Incorporated includes Qualcomm’s licensing
business, QTL, and the vast majority of its patent portfolio. Qualcomm
Technologies, Inc., a wholly-owned subsidiary of Qualcomm
Incorporated, operates, along with its subsidiaries, substantially all of
Qualcomm’s engineering, research and development functions, and
substantially all of its product and services businesses, including its
semiconductor business, QCT.