I agree that Xybernaut should not be viewed as competition for VRD. One potential application for VRD is wearable computers. In order for this to work to Microvision's benefit, there, first, has to be a market for wearable computers. This may sound obvious, but it underscores Microvision's strategy of being a player in a wide variety of markets.
They could pursue one of two basic paths. 1) Work with other companies to incorporate VRD into those companies' products. 2) Create a killer new product incorporating VRD on their own. They are choosing strategy 1, which I believe is the correct call. It is much less risky, requires less capital, and will likely bring products to market much faster.
So, back to Xybernaut. This company is not in the display business. They're in the wearable computer business, as wfrazee points out. I believe they currently buy their displays from Kopin, a manuracturer of LCD displays. If Microvision's display is as superior to LCD's as I believe it to be, then in a few years, manufacturers of wearable computers, like Xybernaut, will be purchasing their displays from Microvision.
So, the more developed the market for wearable computers is in the future, the better for Microvision. After all, we're not complaining that there are companies already established in the cellular phone industry. That's because, Microvision's strategy calls for them to license (or some similar arrangement) their technology to players in this industry, not to produce cellular phones on their own.
Wearable computers should be viewed similarly.
Stephan |
