Table of Contents
Overview
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- What you need to know
- Key issues covered in this Report
- Definition
Executive Summary
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- Market overview
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- Figure 1: Market size and forecast of technology and communications, at current prices, 2015-25
- Top takeaways
- Impact of COVID-19 on Digital Trends
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- Figure 2: Short-, medium- and long-term impact of COVID-19 on technology hardware and digital services, September 2020
- Brands need to reckon with the remote transition
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- Figure 3: Work commute before and since Covid-19, August 2020
- Parents prep for more digital schooling
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- Figure 4: Devices purchased due to COVID-19, by parental status of school-aged children, August 2020
- Surplus funds and remote activity drive tech purchases
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- Figure 5: Reasons for COVID-19 tech purchase, August 2020
- Pandemic is leading to greater tech integration
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- Figure 6: Changes in digital activities since COVID-19, August 2020
- What’s next
The Market – Key Takeaways
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- Tech will endure 2020 headwinds and return to growth after
- “K” shaped recovery tells a tale of two consumers
- Remote work here to stay
- Amazon thriving in pandemic ecosystem
Market Size and Forecast
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- COVID-19 dampens spending but elevates connectivity
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- Figure 7: Market size and forecast of technology and communications, at current prices, 2015-25
- Figure 8: Total US sales and forecast of technology and communications – table, at current prices, 2015-25
- Technology and communications expected to outperform the economy, overall
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- Figure 9: US technology and communications spending growth and US real GDP growth (annual percent change), 2007-21
- Impact of COVID-19 on Digital Trends
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- Figure 10: Short-, medium- and long-term impact of COVID-19 on technology hardware and digital services, September 2020
- Lockdown
- Re-emergence
- Recovery
- COVID-19: US context
- Learnings from the last recession
Market Factors
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- A tale of two economies – “K” shaped recovery gains traction
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- Figure 11: Weekly US initial unemployment claims, January 2007 – August 2020
- Figure 12: Monthly US unemployment rate, August 2000 – August 2020
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- Figure 13: Value of Dow Jones Industrial Average and S&P 500 Index, January 2007-September 2020
- Supplementary unemployment benefits run out
- Remote work and schooling are part of the “next normal”
- Importance of home internet elevated during social distancing
Market Opportunities
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- Time to shine for video conferencing apps and hardware
- Remote educational aids will draw parents
- Wearable tech set to reposition itself as top of the line health devices
Market Movers
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- Amazon reaping the benefits of a more digital world
- Google Chromebooks outpace overall laptop segment
- Facebook devices ideal for pandemic – not ideal for supply chains
The Consumer – Key Takeaways
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- Remote work has doubled among those still working
- Remote schooling the leading option among parents of school children
- Changes in work commute drive tech purchases
- Half of parents with kids 6-11 made a video game related purchase
- Most tech purchases due to the result of extra money or to improve productivity
- Majority of video chat users started or increased video chatting since COVID-19
The Consumer: Trends Drivers
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- Consumer motivations shift amid pandemic
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- Figure 14: Mintel Trends Drivers
- Tech to play a bigger role in sanitation and personal health
Remote Work and School since COVID-19
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- More than half of employees are working remotely since COVID-19
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- Figure 15: Work commute before and after COVID-19
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- Figure 16: Change in commute since COVID-19, by commute before COVID-19, August 2020
- Remote schooling favored before 2020 school year
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- Figure 17: Schooling options considered for the 2020-21 school year, August 2020
- Younger consumers more likely to mix remote work and a commute
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- Figure 18: Breakout of commute since COVID-19, by age, August 2020
- Remote workers tend to be higher earners
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- Figure 19: Breakout of household income, by commute since COVID-19, August 2020
Devices Purchased due to COVID-19
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- Half of consumers made an electronic device purchase as a response to COVID-19
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- Figure 20: Devices purchased due to COVID-19, August 2020
- Changes in work commute drive purchases
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- Figure 21: Devices purchased due to COVID-19, by work commute since COVID-19, August 2020
- Figure 22: Index of devices purchased due to COVID-19, by changes in commute since COVID-19, August 2020
- Parents with school children prepping for uncertain school year
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- Figure 23: Devices purchased due to COVID-19, by parental status of school-aged children, August 2020
- Half of parents with kids 6-11 made a video game related purchase
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- Figure 24: Devices purchased due to COVID-19 – video games, by parental status and presence of child by age in the household, August 2020
- Only one in five 25-34 year olds did not make a tech purchase
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- Figure 25: Devices purchased due to COVID-19 – none of the above, by age, August 2020
- Home schooling a prime target for electronics retailers
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- Figure 26: Devices purchased due to COVID-19, by schooling options considered for the 2020-21 school year, August 2020
Reasons for COVID-19 Tech Purchases
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- More than half of buyers used savings or stimulus for a tech purchase
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- Figure 27: Reasons for COVID-19 tech purchase, August 2020
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- Figure 28: Reasons for COVID-19 tech purchase, by work commute since COVID-19, August 2020
- Both young children and teenagers driving education related purchases
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- Figure 29: Reasons for COVID-19 tech purchases – child’s education, August 2020
Digital Activities in the Past Three Months
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- Nearly seven in 10 consumers are using video calling
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- Figure 30: Digital activities in the past three months, August 2020
- Remote work increases video call usage
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- Figure 31: Digital activities in the past three months, by work commute since COVID-19, August 2020
- Video calling widely used by younger consumers, especially women
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- : Figure 32: Digital activities in the past three months, by gender and age, August 2020
- Increased tech usage a direct response to social distancing
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- Figure 33: Changes in digital activities since COVID-19, August 2020
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- Figure 34: Breakout of changes to digital activities in the past three months, August 2020
Tech Cost-cutting Measures
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- More consumers would hold off upgrading devices than cancel Netflix
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- Figure 35: Tech cost-cutting measures, August 2020
- Wealthier households will cut future spending over current services
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- Figure 36: Tech cost-cutting measures, August 2020
Attitudes toward Digital Trends
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- Technology is a valuable tool to keep people connected
- While COVID-19 forced many to use video calls, most consumers agree they’re now more comfortable using video calling since then, and that comfort will likely spur additional usage moving forward.
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- Figure 37: Attitudes toward digital trends – connecting and socializing, August 2020
- Consumers are prepared for another lockdown
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- Figure 38: Attitudes toward digital trends – home electronics, August 2020
- Figure 39: Attitudes toward digital trends – home electronics, by attitudes toward digital trends, August 2020
- Home internet has been widely satisfactory for users during the pandemic
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- Figure 40: Attitudes toward digital trends – home internet, August 2020
Consumer Segments – Attitudes toward Digital Trends
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- Four segments of consumers identified based on attitudes toward digital trends
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- Figure 41: Consumer segments of attitudes toward digital trends, August 2020
- Tech Avoiders (22%)
- Characteristics
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- Figure 42: Profile of Tech Avoiders, August 2020
- Opportunities
- Simple Tech Seniors (26%)
- Characteristics
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- Figure 43: Profile of Simple Tech Seniors, August 2020
- Opportunities
- Modern Tech Users (33%)
- Characteristics
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- Figure 44: Profile of Modern Tech Users, August 2020
- Opportunities
- Emerging Tech Users (19%)
- Characteristics
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- Figure 45: Profile of Emerging Tech Users, August 2020
- Opportunities
Appendix – Data Sources and Abbreviations
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- Data sources
- Sales data
- Consumer survey data
- Consumer qualitative research
- Direct marketing creative
- Abbreviations and terms
- Abbreviations
- Terms
Appendix – The Market
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- Figure 46: Total US sales and forecast of technology and communications – table, at inflation-adjusted prices, 2015-25
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