Goldman Sachs-1.13.2016

EQUITY RESEARCH | January 13, 201

Virtual and augmented
reality have the potential
to become the next big
computing platform. All
around us are examples of
where VR (which
immerses the user in a
virtual world) and AR
(which overlays digital
information onto the
physical world) can
reshape existing ways of
doing things – from buying
a new home to interacting
with a doctor or watching
a concert. In the first of a
new Profiles in Innovation
series, we examine what
VR/AR could become, the
evolving use cases and
the markets that could be
created and disrupted.

PROFILES

Heather Bellini, CFA
(212) 357-7710
heather.bellini@gs.com
Goldman, Sachs & Co.
Wei Chen
+886(2)2730-4185
wei.chen@gs.com
Goldman Sachs (Asia) L.L.C., Taipei Branch
Masaru Sugiyama
+
@gs.com
Marcus Shin
+82(2)3788-1154
marcus.shin@gs.com
Goldman Sachs (Asia) L.L.C., Seoul Branch
Shateel Alam
(212) 902-6785
shateel.alam@gs.com
Goldman, Sachs & Co.
Daiki Takayama
+81(3)6437-9870
daiki.takayama@gs.com
Goldman Sachs Japan Co., Ltd.

I N I N N O V AT I O N

Virtual & Augmented Reality
Understanding the race for the next computing platform

Goldman Sachs does and seeks to do business with companies covered in its research reports. As a
result, investors should be aware that the firm may have a conflict of interest that could affect the
objectivity of this report. Investors should consider this report as only a single factor in making their
investment decision. For Reg AC certification and other important disclosures, see the Disclosure
Appendix, or go to www.gs.com/research/hedge.html. Analysts employed by non-US affiliates are not
registered/qualified as research analysts with FINRA in the U.S.
The Goldman Sachs Group, Inc.

January 13, 2016

Americas: Technology

Table of Contents
Portfolio manager’s summary

3

Virtual and augmented reality in 6 charts

8

Current state of the market

9

Using the past to predict the future

11

The PC revolution

11

The rise of the smartphone and tablet

12

Summary of our...