On April 2, according to foreign media reports, virtual/augmented reality technology is becoming more and more popular, and competition is becoming increasingly fierce. Many tech giants are likely to be leaders in this market, but only one has a clear and established strategy, and that is Google.
In the 1990s, there were virtual reality products on the market, but the user experience was very poor. The flat quality, technical problems and high prices made the virtual reality products at that time almost no demand, and the products slowly disappeared from the market and people's lives. . Many companies are aware of the potential of virtual/augmented reality technologies in the military, medical, personal communications and gaming arena, hoping to reinvigorate virtual/augmented reality technologies. When Google announced Project Glass in 2012, virtual/augmented reality technology re-entered people's vision. Two years later, Facebook acquired Oculus VR for $2 billion to further attract virtual/augmented reality technology.
In addition to Google and Facebook, Sony, Microsoft, Samsung and other giants also announced virtual / augmented reality helmets, and then add to the trend. Despite being so popular with so many giants, analysts still remember the failure of virtual reality technology 20 years ago, and the virtual/augmented reality market for 2018 is expected to be between $10.6 and $50.20 million. Although the ecological chain is still developing and the public's acceptance is still unknown, this conservative estimate is still the income-generating potential that technology giants cannot ignore. To be the leader in this market in the future, companies need to take the right steps to stay ahead of their competitors. The author believes that by implementing a strategy to adapt to the virtual/augmented reality market, Google will gain a dominant position in the market.
Google's consumer electronics strategy
Google is first and foremost a software developer, but it also requires world-class hardware solutions. For software vendors, the best way to release a comprehensive software/hardware solution is to work with other technology giants to deliver the best hardware solutions. For example, Google released Android for free use by hardware vendors, and they also designed Nexus series hardware devices, but they were produced and sold by hardware partners. Google’s move is a two-pronged approach, avoiding the hardware business with very low profit margins and expanding the Android ecosystem. Google is pursuing a similar strategy in areas such as PCs, smart TVs and wearables. Google will also adopt such a strategy in the virtual/augmented reality field.
Some media reports said that Google is developing an Android version for virtual/augmented reality technology, which constitutes the software part of the virtual/augmented reality product, and the hardware part is based on the first generation of Google glasses. In terms of virtual/augmented reality product hardware, Google has two options:
(1) Independent development: Google can continue to independently develop, design and manufacture a new generation of Google glasses, which will help increase the profitability of Google Glass, but will make Google a competitor of customers or partners in other fields, such as Samsung, HTC and Sony. Despite a slight boost to Google's performance, this approach will undermine strategic partnerships in other markets and have a destructive effect on the Android ecosystem. The author believes that this method is not desirable.
(2) OEM cooperation development. Google can work with a foundry to launch Google Glass on the market, which allows Google to maintain a partnership with its partners and avoid involvement in hardware manufacturing. The author believes that this method is feasible and possible.
in conclusion
Google has a clear strategy for the consumer electronics market, and in the virtual/augmented reality market, it will adopt the same strategy as smartphones. The experience of the first generation of Google Glass made it possible to launch products that are more easily accepted by the public. Due to the lack of real rivals, Android will dominate the virtual/augmented reality market. The advantages in the mobile operating system field make Google the most likely to be the leader in the virtual/augmented reality market.
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