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HTC Vive shipments fall behind Sony PSVR, Oculus Rift in 2016-2017

Shipments of the HTC Vive VR devices will lag behind those of Sony's PSVR and the Oculus Rift in 2016 and 2017 due to its disadvantage in pricing, according to an estimate of industry sources.

Pricing has been a barrier that has impeded HTC from ramping up shipments of the HTC Vive, said the sources, noting that the HTC Vive is priced at US$799 compared to US$499 for the Oculus Rift and US$399 for the Sony PSVR.

Shipments of the Sony PSVR devices are expected to top 1.5 million units in 2016, compared to 650,000 units estimated for the Oculus Rift and 450,000 units for the HTC Vive, said the sources.

Sales of the HTC Vive are likely to account for only 12% of HTC's total revenues in 2016, added the sources.

However, despite its efforts to boost sales of the HTC Vive, the company is expected to continue to operate in the red in the fourth quarter of 2016, affected by slack sales of its smartphone business.

Due to volatile market conditions, HTC is expected to ship 3-3.5 million smartphones in the fourth quarter of 2016, which represent a decline of about one million units from a year earlier period, the sources noted.

HTC is likely to post a net loss of NT$1.5-2 per share for the fourth quarter of 2016 after recording a loss of NT$9.05 for the previous three quarters, the sources estimated.

HTC reported earlier that it generated consolidated revenues of NT$64.09 billion (NT$2.003 billion) for the January-October period of 2016, decreasing 38.9% from a year earlier.