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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- Top takeaways
- Market overview
- Impact of COVID-19 on digital hardware
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- Figure 1: Short-, medium- and longer-term impact of COVID-19 on digital hardware, December 2020
- Opportunities
- Innovating to broaden target consumer bases
- Older Canadians represent an opportunity across multiple categories
- Challenges
- Focusing on what consumers want
- Home security services are competing with their own consumers
The Market – Key Takeaways
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- After some bumps in the road, tech hardware is stabilizing and growing
The Market – By the Numbers
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- Tech companies see their stocks rise in 2020
- Smartphone sales struggle as a result of the pandemic
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- Figure 2: Apple annual net sales by category (USD), 12 months ending September 2019-12 months ending September 2020
Market Factors
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- The Canadian economy is settling down after spring uncertainty
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- Figure 3: Canadian unemployment rate, November 2019-November 2020
- Figure 4: Canadian household saving rate, Q1 2018-Q3 2020
- COVID-19 pandemic delayed the roll-out of 5G in Canada
- Chinese imports steady amid political turmoil
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- Figure 5: Canadian imports from China (x $1,000,000), October 2017-October 2020
- Video-game console releases headline 2020 hardware innovations
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- Figure 6: Xbox Canada Instagram post, September 2020
- Figure 7: PlayStation Canada Instagram post, October 2020
- Electronics supply chains have stabilized
- Impact of COVID-19 on digital hardware
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- Figure 8: Short-, medium- and longer-term impact of COVID-19 on digital hardware, December 2020
Companies and Brands – Key Takeaways
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- Leading companies made small strategic adjustments in 2020
Competitive Strategies
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- 2020 innovations in digital hardware
- Flagship smartphone innovations were minimal in 2020
- Wearable tech is collecting more personal wellness data
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- Figure 9: Fitbit Instagram post, December 2020
- Gaming is a big factor in 2020 TV innovation
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- Figure 10: LG Canada Instagram post, December 2020
- Google shifts its home security strategy
- Apple expands into wireless headphones
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- Figure 11: AirPods Max – Journey into Sound, December 2020
- Brands are taking steps towards more eco-friendly products
The Consumer – Key Takeaways
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- Digital hardware ownership
- Wearable technology and health
- Smart tech’s role in home security
- Television purchases and innovation
- Smartphone innovation and retailing
- 5G and foldable smartphone
Digital Hardware Ownership
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- Widely owned tech is the most vulnerable in a struggling economy
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- Figure 12: Device ownership, September 2020
- Smartphones can use pricing promotions or expand to underserved demographics
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- Figure 13: Fido Facebook post, November 2020
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- Figure 14: Mobile-device ownership, by age, September 2020
- Tablets should be targeted at younger consumers
- There is less white space when it comes to personal computers
- In personal audio, wireless headphones outpace smart speakers
- Wireless headphones/earphones are becoming mainstream
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- Figure 15: Wireless headphone/earphone ownership, by age, September 2020
- Smart speakers have a stable base, but may be slowing
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- Figure 16: Speaker ownership, by age, September 2020
- Consoles will drive the gaming industry in 2021
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- Figure 17: Video-game console ownership, by age and gender, September 2020
Smart Technology and Health
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- Building health capabilities into wearable tech
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- Figure 18: Smartwatch/fitness tracker ownership, by age, September 2020
- Messaging should shift to make older consumers a target
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- Figure 19: Interested in wearable tech that can track general health (% agree), by age, September 2020
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- Figure 20: Apple Watch – Dear Apple – Apple, September 2017
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- Figure 21: Interested in wearable tech that can track heart health (% agree), by age, September 2020
- Dads are interested, but most do not own wearable tech
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- Figure 22: Smartwatch/fitness tracker ownership, by gender and presence of children, September 2020
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- Figure 23: Interested in wearable tech health capabilities (% agree), moms vs dads, September 2020
- Health capabilities in smart tech at home
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- Figure 24: Introducing Fitbit Aria™ Wi-Fi Smart Scale, January 2015
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- Figure 25: Oral-B Instagram post, October 2020
- Figure 26: Ownership and interest in health tech at home, September 2020
- Smart weight scales fit well with at-home fitness and healthcare
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- Figure 27: Ownership and interest in smart weight scales, by age, September 2020
- Smart exercise equipment skews to higher incomes, but not among young people
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- Figure 28: Do not own smart exercise equipment but interested, by age and household income, September 2020
- Hygiene at home is another opportunity for smart tech
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- Figure 29: Ownership and interest in smart toothbrushes, by age, September 2020
Smart Tech’s Role in Home Security
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- Smart security cameras have put consumers in control of home security
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- Figure 30: Ownership and interest in smart security cameras, September 2020
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- Figure 31: Interest in smart security cameras, by age, September 2020
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- Figure 32: Interest in smart security cameras, parents vs non-parents, September 2020
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- Figure 33: Arlo Smart Home Instagram post, October 2020
- Figure 34: Interest in smart security cameras, Asian Canadians vs overall, September 2020
- Smart smoke detectors are a good complement for security cameras
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- Figure 35: Currently own a smart smoke detector, by smart security camera ownership, September 2020
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- Figure 36: Interested in a smart smoke detector, by smart security camera interest, September 2020
- Smart homes are a threat to security services
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- Figure 37: Smart home security eliminates the need for professional services (% agree), by age, September 2020
Television Purchases and Innovation
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- TV shoppers put quantity over quality
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- Figure 38: Important factors when shopping for a TV, September 2020
- Picture and sound quality are important, but secondary
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- Figure 39: TV screen resolution is an important purchase factor, by household income, September 2020
- Only half of consumers care about a TV’s brand name
- Software does not move the needle
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- Figure 40: Software as an important purchase factor, by age, September 2020
- Adoption of new television technology is slow
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- Figure 41: 4K TV ownership, by age, September 2020
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- Figure 42: 8K TV ownership and interest, September 2020
Smartphone Innovation and Retailing
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- Smartphone brands should find new ways to differentiate
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- Figure 43: Red Instagram post, October 2020
- Figure 44: Willing to pay more for a smartphone (% agree), by age, September 2020
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- Figure 45: Willing to pay more for a smartphone (% agree), by race, September 2020
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- Figure 46: Fairphone Instagram post, August 2020
- Acknowledging the financial realities of eco-friendly and charitable smartphones
- Consumers are savvy about their smartphone purchases
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- Figure 47: Virgin Mobile advertisement, October 2020
- Most shoppers still want to buy their smartphones in person
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- Figure 48: Fido advertisement, November 2020
5G and Foldable Smartphones
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- 5G smartphones will eventually be the norm, but not yet
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- Figure 49: 5G smartphone ownership and interest, September 2020
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- Figure 50: 5G smartphone ownership and interest, by age, September 2020
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- Figure 51: 5G smartphone ownership and interest, by race, September 2020
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- Figure 52: 5G smartphone ownership and interest, by gender, September 2020
- Most smartphone owners are satisfied with their current speeds
- Foldable smartphones are not an inevitability like 5G
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- Figure 53: Samsung Canada Instagram post, February 2020
- Figure 54: Foldable and 5G smartphone ownership and interest, September 2020
- Foldable smartphones’ key benefits only apply to a minority of owners
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- Figure 55: Huawei Mobile Instagram post, March 2020
- Figure 56: Smartphone size and split-screen usage (% agree), September 2020
Appendix – Data Sources and Abbreviations
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- Data sources
- Consumer survey data
- Mintel Trend Drivers
- Abbreviations and terms
- Abbreviations
- Terms
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