Table of Contents
Executive Summary
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- Video summary
- Market overview
- Top takeaways
- The issues
- Consumer confidence drops in August 2019 – slightly improves in September 2019
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- Figure 1: Consumer Sentiment Index, January 2007-August 2019
- Virtual reality headsets remain a niche item – require content, convincing use cases
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- Figure 2: Personal electronics ownership, August 2019
- The opportunities
- Millennials most likely to buy five+ electronic devices within the next six months
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- Figure 3: Number of home and personal electronic devices planning to purchase, by generation, August 2019
- Consumers look forward to tech to help them exercise
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- Figure 4: Top three activities for new tech, August 2019
- Key trends
- 4K Ultra-HD TVs are now affordable for the majority of US consumers
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- Figure 5: 4K Ultra-HD TV ownership and plans to purchase, by household income, August 2019
- Wearable technology will spread and become more acceptable
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- Figure 6: Attitudes toward digital hardware – Wearable tech, by age, August 2019
- What it means
The Market – What You Need to Know
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- Trade war looms over entire digital device industry
- Recession fears emerging, consumer confidence takes a big hit
Market Factors
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- US-Sino Trade War of 2019
- Recession fears could curb confidence and electronics spending
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- Figure 7: Consumer Sentiment Index, January 2007-September 2019
- Percentage of households with children continues to dwindle
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- Figure 8: US households, by presence of children, 2008-18
Key Players – What You Need to Know
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- Apple takes aim at tech and media in one announcement
- VR manufacturers struggle to get mainstream appeal
- 5G rollout slow with few compatible devices on the market
What’s Working
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- Apple products continue to set the standard for US consumers
- Amazon key in smart speaker adoption
What’s Struggling
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- VR headsets still remain niche item
What to Watch
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- 5G connections and phones for 2020 through 2021
- Sony leverages gaming for its next smartphone Xperia 5
The Consumer – What You Need to Know
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- 4K Ultra-HD TVs soon to be the norm in US households
- Video gaming remains predominantly male, with growing subset of younger women
- Millennials are set to spend the most in the tech category
- Branding remains a critical component of tech perceptions
- Nearly a fifth of consumers are “Techies”
Home and Personal Electronics Ownership
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- Increased affordability spikes Ultra-HD TV ownership
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- Figure 9: Home electronic products owned, August 2019
- Figure 10: 4K Ultra-HD TV ownership, by household income, August 2019
- Personal electronics the norm for consumers
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- Figure 11: Personal electronics ownership, August 2019
- Figure 12: Mobile phone ownership and type of phone used, 2011-18
- Younger men get video game consoles for themselves, women buy them for their kids
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- Figure 13: Home electronics ownership and purchase intent – Video game console, by gender and age, August 2019
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- Figure 14: Home electronics ownership and purchase intent – Video game console, by gender and parental status, August 2019
Home and Personal Electronics Purchase Intent
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- Nearly one in four looking to buy an Ultra-HD TV
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- Figure 15: Home electronics purchase intent, August 2019
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- Figure 16: Samsung QLED 8K promotional email, June 2019
- Figure 17: Amazon TV acquisition email, July 2019
- Smartphones and laptops lead consumer purchase intent
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- Figure 18: Personal electronics purchase intent, August 2019
- Men are the more enthusiastic tech shoppers
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- Figure 19: Home electronics purchase intent, by gender, August 2019
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- Figure 20: Personal electronics purchase intent, by gender, August 2019
- Opportunity to reach 18-24 year olds with smart speakers and streaming devices
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- Figure 21: Smart speaker and streaming media player ownership and purchase intent, by age, August 2019
- Black and English-speaking Hispanic consumers show higher smartphone purchase consideration
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- Figure 22: Smartphone purchase intent, by race and Hispanic origin, August 2019
- Consumers have a healthy appetite for home and personal electronics
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- Figure 23: Number of home and personal electronic devices planning to purchase, August 2019
- Millennials in the market for more devices than any other generation
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- Figure 24: Number of home and personal electronic devices planning to purchase, by generation, August 2019
Top Activities for New Technology
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- Exercising is the top-ranked activity for which to buy new tech
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- Figure 25: Top three activities for new tech, August 2019
- Older consumers least interested in new tech for any activity
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- Figure 26: Top three activities for new tech – Ranked at least one activity, by age, August 2019
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- Figure 27: Top three activities for new tech – Any rank, among rankers aged 55+, August 2019
- Half of men aged 18-34 rank video gaming as a top three activity for new tech
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- Figure 28: Top three activities for new tech – Video gaming, by gender and age, August 2019
- Interest in health monitoring among men highest for 35-54 year olds
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- Figure 29: Top three activities for new tech – Health monitoring, by gender and age, August 2019
- Mothers look for tech to help around the home
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- Figure 30: Top three activities for new tech – Any rank, by parental status, August 2019
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- Figure 31: Top three activities for new tech – Any rank, mothers and fathers, August 2019
5G Awareness and Knowledge
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- Awareness and self-reported knowledge of 5G on the rise
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- Figure 32: 5G awareness and knowledge, January 2019 and August 2019
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- Figure 33: Donald Trump 5G tweet, February 2019
- Younger high-earners the most knowledgeable on 5G
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- Figure 34: 5G awareness and knowledge, by age and income, August 2019
Attitudes toward Digital Hardware
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- Hands-on experience still important to tech shoppers
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- Figure 35: Attitudes toward digital hardware – Online vs in-store, August 2019
- Name brand tech products provide assurance in quality and performance
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- Figure 36: Attitudes toward digital hardware – Branding, August 2019
- Parents don’t trust durability of electronics, seek warranties on pricey items
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- Figure 37: Attitudes toward digital hardware – Durability and warranties, by gender and parental status, August 2019
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- Figure 38: iPhone 11 Pro – “It’s tough out there,” TV commercial, September 2019
- Younger consumers find wearables useful and fashionable
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- Figure 39: Attitudes toward digital hardware – Wearable tech, by age, August 2019
Consumer Segmentation – Attitudes toward Digital Hardware
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- Four segments of consumers identified based on attitudes toward digital hardware
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- Figure 40: Consumer segmentation – Attitudes toward digital hardware, August 2019
- Apathetic Browsers
- Characteristics
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- Figure 41: Profile of Apathetic Browsers, August 2019
- Opportunities
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- Figure 42: Household and personal electronics purchase intent, by consumer segmentation, August 2019
- Old School Shoppers
- Characteristics
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- Figure 43: Profile of Old School Shoppers, August 2019
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- Figure 44: Age distribution, by consumer segmentation, August 2019
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- Figure 45: Top three activities – Ranked at least one activity, by consumer segmentation, August 2019
- Opportunities
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- Figure 46: Attitudes toward digital hardware – New tech, August 2019
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- Figure 47: Top three activities for new tech for Old School Shoppers – Any rank, August 2019
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- Figure 48: Top three activities for new tech – Index to all, by consumer segmentation, August 2019
- Brand Buyers
- Characteristics
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- Figure 49: Profile of Brand Buyers, August 2019
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- Figure 50: Attitudes toward digital hardware – Branding, by consumer segmentation, August 2019
- Opportunities
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- Figure 51: Top three activities for new tech for Brand Buyers – Any rank, August 2019
- Techies
- Characteristics
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- Figure 52: Profile of Techies, August 2019
- Opportunities
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- Figure 53: Number of home and personal electronic devices planning to purchase, by consumer segmentation, August 2019
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- Figure 54: Top three activities for new tech for Techies – Any rank, August 2019
Appendix – Data Sources and Abbreviations
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- Data sources
- Consumer survey data
- Direct marketing creative
- Abbreviations and terms
- Abbreviations
- Terms
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