Table of Contents
Executive Summary
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- Top takeaways
- Market overview
- Impact of COVID-19 on technology and communication
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- Figure 1: Short-, medium- and long-term impact of COVID-19 on technology hardware and communication services, June 2021
- Opportunities and challenges
- Remote work will continue to drive household tech purchases
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- Figure 2: Impact of COVID-19 on technology, by work commute, February 2021
- Computer chip shortage will put pressure on the tech category to meet demand
- Consumers interested in new tech products for a variety of categories
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- Figure 3: Categories for new technology, February 2021
- Shared spaces increase demand for personal audio products
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- Figure 4: Hearable device ownership, by household size, February 2021
COVID-19 Pandemic Overview
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- Figure 5: Daily trends in number of COVID-19 cases in the United States reported to CDC, Jan. 22, 2020-May 19, 2021
- January-March 2020: discovery and first wave
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- Figure 6: Number of COVID-19 cases in the United States reported to CDC, by region, Jan. 22, 2020-May 19, 2021
- April-July 2020: uneven lockdown and uneven impact as cases climb
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- Figure 7: COVID-19 cases in the United States reported to CDC, by age group, Jan. 22, 2020-May 19, 2021
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- Figure 8: COVID-19 deaths in the United States Reported to CDC, by age group, Jan. 22, 2020-May 19, 2021
- Figure 9: COVID-19 cases in the United States reported to CDC, by race/ethnicity, Jan. 22, 2020-May 19, 2021
- Figure 10: COVID-19 deaths in the United States reported to CDC, by race/ethnicity, Jan. 22, 2020-May 19, 2021
- Figure 11: COVID-19 cumulative case rate per 100,000 population in United States, by percentage of county population in poverty, January 23, 2021-May 18, 2021
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- Figure 12: COVID-19 cumulative death rate per 100,000 population in United States, by percentage of county population in poverty, January 23, 2021-May 18, 2021
- August 2020-January 2021: new leadership, a new variant and first vaccinations
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- Figure 13: COVID-19 vaccinations in the United States, Dec. 13, 2020-May 20, 2021
- February 2021 onward: double masking and the road to reopening
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- Figure 14: Projected dates for vaccination coverage, as of May 19, 2021
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Impact of COVID-19 on the Economy
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- A record drop and bounce back in economic activity
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- Figure 15: US GDP percentage change from previous period, not seasonally adjusted, 2007-25 (forecast)
- Employment plummets – Recovers to 2016 levels – Tech sector resilient
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- Figure 16: Unemployment and underemployment rate, January 2007-April 2021
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- Figure 17: Initial jobless claims, Jan 13, 2007-May 15, 2021
- Figure 18: Employment levels, by industry – Information, financial activities, professional and business services sectors, Jan 2007-April 2021
- Consumer spending and confidence are catching up
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- Figure 19: Real personal consumption expenditures and change in personal consumption expenditures, Q1 2007-Q1 2021
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- Figure 20: Personal saving rate, monthly, January 2007-March 2021
- Figure 21: Consumer Sentiment Index, January 2007-April 2021
- Federal Reserve promises to keep interest rates “near zero”
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- Figure 22: Effective Federal Funds Rate, Jan 1990-April 2021
- Inflation concerns grow as economic growth accelerates
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- Figure 23: Consumer Price Index change from previous period, January 2007-April 2021
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- Figure 24: US gasoline and diesel retail prices, January 2007-April 2021
- Global computer chip shortage ripples throughout the economy
Impact of COVID-19 on Household Finances and Spending Priorities
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- Financial wellbeing is improving, despite only half of Americans thinking their financial situations are healthy
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- Figure 25: Financial health, by household income, April 29-May 13, 2021
- Stimulus relief has been a lifeline for many
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- Figure 26: Financial situation, by household income, April 29-May 13, 2021
- Essential goods remain priorities…
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- Figure 27: Coronavirus spending habits, March 31-April 17, 2021
- …but discretionary categories show signs of rebirth
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- Figure 28: Coronavirus spending habits – Higher priority, April 16-24, 2020, March 31-April 17, 2021
- Saving remains a focus, but consumers ready to make exceptions
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- Figure 29: Spending behaviors – Past three months and future plans, May 2021
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- Figure 30: Spending behaviors – Past three months, May 2020-May 2021
Overall Consumer Mind-set
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- Fear is subsiding one year after pandemic lockdowns
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- Figure 31: Share of adults worried about coronavirus exposure, March 2020-May 2021
- Lifestyle concerns follow suit
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- Figure 32: Share of adults worried about coronavirus impact on lifestyle, March 2020-May 2021
- The pandemic experience inspired reflection
- Family first
- New view of health and wellness
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- Figure 33: Post COVID-19 priority changes, May 2021
- Masks still provide a level of comfort despite new guidelines
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- Figure 34: Post COVID-19 priority changes, May 2021
The Technology Market – Key Takeaways
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- Tech and communication spending to continue growing in wake of pandemic
- Tech is even more important now than during the Great Recession
- Hardware spending hits double digit growth twice in as many years
Technology Hardware and Communication Services Market Size and Forecast
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- Tech and communication spending shrugs off COVID-19
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- Figure 35: Total US sales and fan chart forecast of technology hardware and communication services, at current prices, 2015-25
- Figure 36: Total US sales and forecast of technology hardware and communication services, at current prices, 2015-25
- Learnings from the last recession
Segment Performance
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- Hardware sales benefit from shift to remote work and schooling
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- Figure 37: Total US sales and fan chart forecast of technology hardware, at current prices, 2015-25
- Figure 38: Total US sales and forecast of technology hardware, at current prices, 2015-25
- Communication spending remained stable in 2020
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- Figure 39: Total US sales and fan chart forecast of communication services, at current prices, 2015-25
- Figure 40: Total US sales and forecast of communication services, at current prices, 2015-25
COVID-19 Scenario Performance
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- Mintel’s approach to predicting the impact of COVID-19
- Fundamental differences in how COVID-19 is affecting consumer markets
- Tech category less sensitive to worst-case COVID-19 scenario
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- Figure 41: COVID-19 scenario forecast for technology hardware and communication services spending, 2015-25
- COVID-19 market disruption: risks and outcomes
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- Figure 42: Summary of Mintel scenario expectations and the impact on the technology hardware and communication services market, June 2021
Market Factors
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- Remote work nearly doubles since pandemic
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- Figure 43: Changes in work commute, February 2021
- Major manufacturers scramble to overcome global chip shortage
- K-shaped economic recovery accentuates digital divide
- 5G supports further innovation and connected potential
Category Winners and Losers
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- Winners
- Smart home integration increases
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- Figure 44: Smart home device ownership, March 2020-April 2021
- Wearable tech and health monitoring get a boost
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- Figure 45: Attitudes toward wearable technology – Healthcare, November 2020
- Social media platforms see bolstered revenues in 2020
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- Figure 46: Social media advertising revenue, 2019-20
- Losers
- Streaming takes on the theater industry
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- Figure 47: Total US revenue from box office admissions, at current prices, 2015-21
- Figure 48: US video streaming and rental spending, 2015-20
Market Opportunities
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- 5G will expand mobile bandwidth capabilities for consumers
- Better internet for more devices at home
- Augmented reality poised for a breakthrough
The Consumer – Key Takeaways
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- Remote work is here to stay and so are the changes in behavior
- Two out of three parents balance both work and home life remotely
- Dependency on technology has increased due to COVID-19
- Hearable devices create a sound barrier for crowded households
- Consumers interested in new tech for variety of categories
- About one third of consumers are Tech Enthusiasts
Impact on Telecommuting
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- The WFH experiment breaks standard expectations of office work
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- Figure 49: Changes in work commute, February 202
- Remote workers skew toward wealthier Millennials and Gen Xers
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- Figure 50: Breakdown of age and household income, by work commute since COVID-19, February 2021
- Nearly two thirds of parents balancing remote work and home life
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- Figure 51: Breakdown of work commutes, by parental status, February 2021
- Full-time commuters skew toward Black and Hispanic consumers
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- Figure 52: Breakdown of race and Hispanic origin, by work commute since COVID-19, February 2021
Impact on Consumer Technology Use
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- Importance of connectivity and hardware grows after COVID-19
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- Figure 53: Impact of COVID-19 on technology, February 2021
- Tech and connectivity vital to remote workers
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- Figure 54: Impact of COVID-19 on technology, by work commute, February 2021
- Parents prepped their homes for remote work and school
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- Figure 55: Impact of COVID-19 on technology, by parental status, February 2021
- Increased dependence on technology driven by remote working women with interest in household automation
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- Figure 56: COVID-19 impact – CHAID – Tree output, February 2021
Electronic Product Ownership
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- Hearables and wearables see robust growth since 2019
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- Figure 57: Wearable device ownership, November 2020-February 2021
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- Figure 58: Hearable device ownership, by household size, November 2020-February 2021
- Digitally based younger consumers don’t feel the need for a printer
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- Figure 59: Printer ownership, by age, February 2021
Electronic Product Purchase Intent
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- Nearly one in three looking to buy a smartphone
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- Figure 60: Electronic purchase intent, February 2021
- Hybrid commuters likely to be in the market for a tech purchase
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- Figure 61: Electronic purchase intent, by work commute, February 2021
Categories of Interest for New Technology
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- Consumers want new tech across variety of categories
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- Figure 62: Categories for new technology, February 2021
- Men seek tech for entertainment while women seek help around the home
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- Figure 63: Categories for new technology, by gender and age, February 2021
- Hispanic parents particularly receptive to new tech for cooking
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- Figure 64: Categories for new technology, by race and Hispanic origin, February 2021
Attitudes toward Technology and Digital Trends
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- Consumers are generally happy with their level of connectivity
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- Figure 65: Attitudes toward technology – Mobile and home internet, February 2021
- Consumers more comfortable controlling devices with a smartphone than their voice
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- Figure 66: Attitudes toward technology – Smartphone and voice control, February 2021
- COVID-19 resuscitates the built-in camera feature
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- Figure 67: Attitudes toward technology – Built-in camera interest, by video callers and work arrangements, February 2021
Consumer Segmentation
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- Figure 68: Consumer segmentation – Attitudes toward technology, February 2021
- Ambivalent Tech Users (22%)
- Characteristics
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- Figure 69: Profile of Ambivalent Tech Users, February 2021
- Opportunities
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- Figure 70: Attitudes toward technology – Telecom satisfaction, by consumer segments, February 2021
- Tech Enthusiasts (32%)
- Characteristics
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- Figure 71: Profile of Tech Enthusiasts, February 2021
- Opportunities
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- Figure 72: Attitudes toward technology – Interest in new tech, by consumer segments, February 2021
- Price Conscious Tech Users (25%)
- Characteristics
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- Figure 73: Profile of Price Conscious Tech Users, February 2021
- Opportunities
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- Figure 74: Attitudes toward technology – Brand vs. price, by consumer segments, February 2021
- New Tech Rejecters (21%)
- Characteristics
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- Figure 75: Profile of New Tech Rejecters, February 2021
- Opportunities
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- Figure 76: Attitudes toward technology – COVID-19 prevention, by consumer segments, February 2021
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Appendix – Data Sources and Abbreviations
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- Data sources
- Sales data
- Forecast
- Consumer survey data
- Consumer qualitative research
- Abbreviations and terms
- Abbreviations
- Terms
Appendix – CHAID Analysis
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- Methodology
- Results
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- Figure 77: COVID-19 impact – CHAID – Tree output, February 2021
- Figure 78: COVID-19 impact – CHAID – Table output, February 2021
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