Rift CV1 (Model HM-A) Headset System report by Wilfried THERON March 2017

21 rue la Noue Bras de Fer 44200 NANTES - FRANCE +33 2 40 18 09 16 [email protected] www.systemplus.fr ©2017 by System Plus Consulting | CV1 Head-Mounted Display (SAMPLE) 1 Table of Contents

Overview / Introduction 4 Cost Analysis 83 o Executive Summary o Accessing the BOM o Main Chipset o PCB Cost o Block Diagram o Display Cost o Reverse Costing Methodology o BOM Cost – Main Electronic Board o BOM Cost – NIR LED Flex Boards Company Profile 9 o BOM Cost – Proximity Sensor Flex o Oculus VR, LLC o Housing Parts – Estimation o BOM Cost - Housing Physical Analysis 11 o Material Cost Breakdown by Sub-Assembly o Material Cost Breakdown by Component Category o Views and Dimensions of the Headset o Accessing the Added Value (AV) cost o Headset Opening o Main Electronic Board Manufacturing Flow o Fresnel Lens Details o Details of the Main Electronic Board AV Cost o NIR LED Details o Details of the System Assembly AV Cost o Microphone Details o Added-Value Cost Breakdown o Display Details o Manufacturing Cost Breakdown o Main Electronic Board  Top Side – Global view Estimated Price Analysis 124  Top Side – High definition photo o Estimation of the Manufacturing Price  Top Side – PCB markings  Top Side – Main components markings Company services 128  Top Side – Main components identification  Top Side – Other components markings  Top Side – Other components identification  Bottom Side – High definition photo o LED Driver Board o NIR LED Flex Boards o Proximity Sensor Flex

©2017 by System Plus Consulting | Oculus Rift CV1 Head-Mounted Display (SAMPLE) 2 OVERVIEW METHODOLOGY

©2017 by System Plus Consulting | Oculus Rift CV1 Head-Mounted Display (SAMPLE) 3 Executive Summary

Overview / Introduction o Executive Summary This full reverse costing study has been conducted to provide insight on technology data, manufacturing cost and selling price of the Oculus Rift Headset* o Main Chipset supplied by Oculus VR, LLC (website). o Block Diagram o Reverse Costing Methodology o Glossary The Oculus Rift Headset is an Head-Mounted Display (HMD) that can be used for gaming and entertainment.

Company Profile & Supply Chain We estimate that the device is manufactured and tested by an EMS in China for a volume of 500,000 units per year. So, the production cost and the selling Physical Analysis price are calculated for 500,000 units in 2017.

Cost Analysis The Oculus Rift Head-Mounted Display is made with one main electronic board and several Rigid-Flex PCBs, and 634 components and parts. Selling Price Analysis

About System Plus

* Note : the accessories (Sensor Module, X-Box Controller, Controller Wireless Adapter, Remote) and the packaging costs are not included in this analysis.

©2017 by System Plus Consulting | Oculus Rift CV1 Head-Mounted Display (SAMPLE) 4 Main Chipset

Overview / Introduction The main chipset of the Headset is resumed in the following table : o Executive Summary o Main Chipset o Block Diagram o Reverse Costing Methodology o Glossary

Company Profile & Supply Chain

Physical Analysis

Cost Analysis

Selling Price Analysis

About System Plus

©2017 by System Plus Consulting | Oculus Rift CV1 Head-Mounted Display (SAMPLE) 5 Block Diagram

Overview / Introduction The block diagram of the Headset is described in the following schematics: o Executive Summary o Main Chipset o Block Diagram o Reverse Costing Methodology o Glossary

Company Profile & Supply Chain

Physical Analysis

Cost Analysis

Selling Price Analysis

About System Plus

©2017 by System Plus Consulting | Oculus Rift CV1 Head-Mounted Display (SAMPLE) 6 Reverse Costing Methodology

Overview / Introduction o Executive Summary The reverse costing analysis is conducted in several phases: o Main Chipset o Block Diagram • The initialization of the analysis o Reverse Costing Methodology Pictures of the elements to be studied. o Glossary Identification of the components. Company Profile & Supply Chain • Description of the material in the “SYScost+” Creation of an “estimation project” of the studied board with SYScost+ software. Physical Analysis Construction of the Bill of Material (BOM). Cost Analysis • Assessing the material Selling Price Analysis Searching for the price of each reference among distributors and manufacturers. About System Plus Assessing the cost of the PCB and of the unaccounted references (unknown by distributors) The BOM is valued with SYScost+ : price simulation according to the requested quantities. • Assessing the assembling and test phases Assembly and test lines are modeled with the SYScost+ software. The assembly and tests costs are estimated. • Production cost & selling price Estimation of the production cost & selling price. • Report A report is edited. SYS.cost+©, is a software tool developed by SYSTEM PLUS CONSULTING to calculate the cost of electronic boards. More information on the software can be found at www.systemplus.fr.

©2017 by System Plus Consulting | Oculus Rift CV1 Head-Mounted Display (SAMPLE) 7 Views and Dimensions

Overview / Introduction Total Weight: 475g Company Profile & Supply (without cables). Chain

Physical Analysis o Views & Dimensions o Headset Opening o Fresnel Lens o LED o Microphone o Display o Main Board o LED Driver Board o Flex Boards

Cost Analysis 88mm Selling Price Analysis

About System Plus

Global view of the Oculus Rift CV1 Headset.

©2017 by System Plus Consulting | Oculus Rift CV1 Head-Mounted Display (SAMPLE) 8 Headset Opening

Overview / Introduction

Company Profile & Supply Chain Main Board Fresnel Lens Physical Analysis o Views & Dimensions o Headset Opening o Fresnel Lens o LED o Microphone o Display o Main Board o LED Driver Board o Flex Boards

Cost Analysis

Selling Price Analysis

About System Plus

LED Driver Board

Headset Opening ©2017 by System Plus Consulting | Oculus Rift CV1 Head-Mounted Display (SAMPLE) 9 Headset Opening

Overview / Introduction Front Cover Company Profile & Supply Screw Philips M2x4 Foam (x2) (x8) Chain Front Cover Physical Analysis o Views & Dimensions o Headset Opening o Fresnel Lens o LED o Microphone o Display Front Cover LED o Main Board Flex o LED Driver Board Screw Philips M1x2.5 (x4) o Flex Boards

Cost Analysis

Selling Price Analysis

About System Plus

Antenna Cable

Headset Opening ©2017 by System Plus Consulting | Oculus Rift CV1 Head-Mounted Display (SAMPLE) 10 Headset Opening

Overview / Introduction

Company Profile & Supply Chain

Physical Analysis o Views & Dimensions o Headset Opening o Fresnel Lens o LED o Microphone o Display o Main Board Fresnel Lens Belt Fresnel Lens Fresnel Lens Cover Samsung AMS351DP01 Display Cover o LED Driver Board PC Polymer PC Display AMOLED Steel Sheet Stamped o Flex Boards 55x54x10mm 51x48x7mm 77x63x44mm Diagonal 3.51’’, 1200x1080px 72x64x7mm Th. 0.8mmn 1.4g 12g Th. 1.3mmn 14g 74x63mm, Th. 1.2mm, 12g Th. 0.25mmn 4g Cost Analysis

Selling Price Analysis

About System Plus

Lens Module Disassembly

©2017 by System Plus Consulting | Oculus Rift CV1 Head-Mounted Display (SAMPLE) 11 Part Collection

Overview / Introduction

Company Profile & Supply Chain

Physical Analysis o Views & Dimensions o Headset Opening o Fresnel Lens o LED o Microphone o Display o Main Board o LED Driver Board o Flex Boards

Cost Analysis

Selling Price Analysis

About System Plus

©2017 by System Plus Consulting | Oculus Rift CV1 Head-Mounted Display (SAMPLE) 12 Display Details

Overview / Introduction

Company Profile & Supply Chain

Physical Analysis o Views & Dimensions o Headset Opening o Fresnel Lens o LED o Microphone o Display o Main Board o LED Driver Board o Flex Boards

Cost Analysis

Selling Price Analysis

About System Plus

©2017 by System Plus Consulting | Oculus Rift CV1 Head-Mounted Display (SAMPLE) 13 Main Board – Top Side – Global View

Overview / Introduction

Company Profile & Supply Chain

Physical Analysis o Views & Dimensions o Headset Opening o Fresnel Lens o LED o Microphone o Display o Main Board o LED Driver Board o Flex Boards

Cost Analysis

Selling Price Analysis

About System Plus

©2017 by System Plus Consulting | Oculus Rift CV1 Head-Mounted Display (SAMPLE) 14 Main Board – Top Side – Main Components Markings

Overview / Introduction

Company Profile & Supply Chain

Physical Analysis o Views & Dimensions o Headset Opening o Fresnel Lens o LED o Microphone o Display o Main Board o LED Driver Board o Flex Boards

Cost Analysis

Selling Price Analysis

About System Plus

©2017 by System Plus Consulting | Oculus Rift CV1 Head-Mounted Display (SAMPLE) 15 Main Board – Top Side – Main Components Identification

Overview / Introduction

Company Profile & Supply Chain

Physical Analysis o Views & Dimensions o Headset Opening o Fresnel Lens o LED o Microphone o Display o Main Board o LED Driver Board o Flex Boards

Cost Analysis

Selling Price Analysis

About System Plus

©2017 by System Plus Consulting | Oculus Rift CV1 Head-Mounted Display (SAMPLE) 16 PCB Cost

Overview / Introduction

Company Profile & Supply Chain

Physical Analysis

Cost Analysis o Accessing the BOM o PCB Cost o Display Cost o BOM Cost – Electronics o Housing Parts Estimation o BOM Cost - Housing o Material Cost Breakdown o Added-Value Cost o Manufacuring Cost

Selling Price Analysis

About System Plus

Estimation of the prices of the PCBs.

©2017 by System Plus Consulting | Oculus Rift CV1 Head-Mounted Display (SAMPLE) 17 Material Cost Breakdown by Sub-Assembly

Overview / Introduction

Company Profile & Supply Chain

Physical Analysis

Cost Analysis o Accessing the BOM o PCB Cost o Display Cost o BOM Cost – Electronics o Housing Parts Estimation o BOM Cost - Housing o Material Cost Breakdown o Added-Value Cost o Manufacuring Cost

Selling Price Analysis

About System Plus

©2017 by System Plus Consulting | Oculus Rift CV1 Head-Mounted Display (SAMPLE) 18 Material Cost Breakdown by Component Categories

Overview / Introduction

Company Profile & Supply Chain

Physical Analysis

Cost Analysis o Accessing the BOM o PCB Cost o Display Cost o BOM Cost – Electronics o Housing Parts Estimation o BOM Cost - Housing o Material Cost Breakdown o Added-Value Cost o Manufacuring Cost

Selling Price Analysis

About System Plus

©2017 by System Plus Consulting | Oculus Rift CV1 Head-Mounted Display (SAMPLE) 19 MANUFACTURING PROCESS FLOW

©2017 by System Plus Consulting | Oculus Rift CV1 Head-Mounted Display (SAMPLE) 20 Assessing the Added-Value (AV) Cost

Overview / Introduction

Company Profile & Supply Chain

Physical Analysis

Cost Analysis o Accessing the BOM o PCB Cost o Display Cost o BOM Cost – Electronics o Housing Parts Estimation o BOM Cost - Housing o Material Cost Breakdown o Added-Value Cost o Manufacuring Cost

Selling Price Analysis

About System Plus

Characteristics of the electronics boards. ©2017 by System Plus Consulting | Oculus Rift CV1 Head-Mounted Display (SAMPLE) 21 Details of Main Board Added-Value (AV) Cost

Overview / Introduction

Company Profile & Supply Chain

Physical Analysis

Cost Analysis o Accessing the BOM o PCB Cost o Display Cost o BOM Cost – Electronics o Housing Parts Estimation o BOM Cost - Housing o Material Cost Breakdown o Added-Value Cost o Manufacuring Cost

Selling Price Analysis

About System Plus Details of the Main Board assembly process.

©2017 by System Plus Consulting | Oculus Rift CV1 Head-Mounted Display (SAMPLE) 22 Details of Main Board Added-Value (AV) Cost

Overview / Introduction

Company Profile & Supply Chain

Physical Analysis

Cost Analysis o Accessing the BOM o PCB Cost o Display Cost o BOM Cost – Electronics o Housing Parts Estimation o BOM Cost - Housing o Material Cost Breakdown o Added-Value Cost o Manufacuring Cost

Selling Price Analysis

About System Plus Details of the Main Board assembly step costs.

©2017 by System Plus Consulting | Oculus Rift CV1 Head-Mounted Display (SAMPLE) 23 Added-Value Cost Breakdown

Overview / Introduction

Company Profile & Supply Chain

Physical Analysis

Cost Analysis o Accessing the BOM o PCB Cost o Display Cost o BOM Cost – Electronics o Housing Parts Estimation o BOM Cost - Housing o Material Cost Breakdown o Added-Value Cost o Manufacuring Cost

Selling Price Analysis

About System Plus

©2017 by System Plus Consulting | Oculus Rift CV1 Head-Mounted Display (SAMPLE) 24 Manufacturing Cost Breakdown

Overview / Introduction

Company Profile & Supply Chain

Physical Analysis

Cost Analysis o Accessing the BOM o PCB Cost o Display Cost o BOM Cost – Electronics o Housing Parts Estimation o BOM Cost - Housing o Material Cost Breakdown o Added-Value Cost o Manufacuring Cost

Selling Price Analysis

About System Plus

©2017 by System Plus Consulting | Oculus Rift CV1 Head-Mounted Display (SAMPLE) 25 SELLING PRICE

©2017 by System Plus Consulting | Oculus Rift CV1 Head-Mounted Display (SAMPLE) 26 Estimation of the Manufacturing Price

Overview / Introduction

Company Profile & Supply Chain

Physical Analysis

Cost Analysis

Selling Price Analysis o Financial Ratios o Manufacturer Price

About System Plus

©2017 by System Plus Consulting | Oculus Rift CV1 Head-Mounted Display (SAMPLE) 27 Related Reports

Overview / Introduction

Company Profile & Supply Chain REVERSE COSTING ANALYSES - SYSTEM PLUS CONSULTING MARKET AND TECHNOLOGY REPORTS - YOLE SÉVELOPPEMENT Physical Analysis • STMicroelectronics Time of Flight Proximity Sensor in the Apple • Status of the CMOS Image Sensor Industry 2016 Manufacturing Process Flow iPhone 7 Plus • Lenovo Phab2Pro 3D ToF Camera Cost Analysis • HTC Vive Virtual Reality Head-Mounted Display Selling Price Analysis • Intel RealSense 3D Camera & STMicroelectronics IR Laser Projector About System Plus • Apple iPhone 6s Plus – Teardown & Physical Analyses of Key o Company services Components o Feedbacks o Contact o Legal

©2017 by System Plus Consulting | Oculus Rift CV1 Head-Mounted Display (SAMPLE) 28 COMPANY SERVICES

©2017 by System Plus Consulting | Oculus Rift CV1 Head-Mounted Display (SAMPLE) 29 Business Models a Fields of Expertise

Overview / Introduction

Company Profile & Supply Chain

Physical Analysis

Manufacturing Process Flow Custom Analyses (>130 analyses per year) Cost Analysis

Selling Price Analysis

About System Plus Reports o Company services (>40 reports per year) o Feedbacks o Contact o Legal Costing Tools

Trainings

©2017 by System Plus Consulting | Oculus Rift CV1 Head-Mounted Display (SAMPLE) 30 Contact

Overview / Introduction

Company Profile & Supply Chain

Physical Analysis FRANKFURT/MAIN Europa Sales Office Manufacturing Process Flow NANTES LYON Headquarter YOLE HQ Cost Analysis TOKYO PHOENIX YOLE KK Selling Price Analysis YOLE Inc. GREATER CHINA About System Plus YOLE o Company services o Feedbacks o Contact o Legal

Headquarters Europe Sales Office America Sales Office Asia Sales Office 21 rue La Noue Bras de Fer Lizzie LEVENEZ Steve LAFERRIERE Takashi ONOZAWA 44200 Nantes Frankfurt am Main Phoenix Tokyo FRANCE GERMANY USA JAPAN +33 2 40 18 09 16 +49 151 23 54 41 82 [email protected] [email protected] [email protected] [email protected] Mavis WANG GREATER CHINA [email protected] www.systemplus.fr

©2017 by System Plus Consulting | Oculus Rift CV1 Head-Mounted Display (SAMPLE) 31