Digital Trends (Hardware) - US - September 2018

OVERVIEW
What you need to know
Definition
EXECUTIVE SUMMARY 
Overview
Figure 1: Number of household and personal devices owned, May 2018
The issues
Not buying into alternate realities
Figure 2: Ownership and interest in AR/VR, May 2018
Push back for artificial intelligence
Figure 3: Attitudes toward artificial intelligence, May 2018
Brand loyal market tough to break into
Figure 4: Attitudes toward tech brands, May 2018
The opportunities
Connection is key
Figure 5: Ownership and purchase intent of smart devices, May 2018
Upgrades driving mobile device sales
Figure 6: Ownership and purchase intent of mobile devices, May 2018
Home tech growing quickly
Figure 7: Interest in home tech, May 2018
Tap into users
Figure 8: Purchase influencers, May 2018
What it means
THE MARKET – WHAT YOU NEED TO KNOW
Device ownership high
Strong economic indicators help hardware
PROLIFERATION OF DEVICES
Device efficiency has not limited ownership
Figure 9: Number of household and personal devices owned, May 2018
Demographic differences highlight groups who gravitate toward more
Figure 10: Owners of at least five household and personal devices, by key demographics, May 2018
MARKET FACTORS 
Healthy GDP encourages discretionary spending
Figure 11: GDP change from previous period and consumption expenditures, Q1 2007-Q1 2018
Unemployment falling
Figure 12: Unemployment and underemployment, January 2007-May 2018
Population growth signals adoption opportunities
Figure 13: Population by age, 2018-23
Share of households with children shrinking
Figure 14: Households, by presence of own children, 2007-17
KEY TRENDS – WHAT YOU NEED TO KNOW 
Investing in high quality
Too far ahead of the curve, and behind it
Strengthening connection
WHAT’S WORKING?
Digital assistants help in and out of the home
Figure 15: Smart speaker revenue, 2016-18
New television technology advancing image quality
Figure 16: Revenue from TV sales, 2013-18
Integrating the whole house
Figure 17: Home solutions revenue, 2013-18
New entries in gaming console market
WHAT’S STRUGGLING?
Getting people excited for alternate realities
Figure 18: Ownership and interest in AR/VR, May 2018
Physical media hit hard
Figure 19: Revenue from physical media, 2013-18
WHAT’S NEXT?
5G phones approaching quickly
Next in home tech
Figure 20: Home solutions revenue, 2013-18
Hearables enhancing the audio experience
Figure 21: Hearables revenue, 2014-18
THE CONSUMER – WHAT YOU NEED TO KNOW 
TVs getting smarter
Wireless opportunities in audio
Mobile devices seek to differentiate
Mobility dominates computer ownership
Emerging tech needs boost of relevance
Opinions matter for new tech
Cloud of distrust looms over AI
Consistency is key
Tech purchases informed but skeptical
Consumer segmentation shows opportunity
TV HARDWARE 
Key opportunity
TV landscape leaving room for rising entrants
Redefining HD
Smart TVs becoming standard
3D hasn’t found its home audience
Figure 22: Ownership and purchase intent of TVs, May 2018
Figuring out the best way to stream
Streaming media players gunning for the top of the box
Integrating the mobile experience
Figure 23: Ownership of recording and streaming devices, May 2018
Younger adults looking for something new
Figure 24: Ownership of TVs and recording devices, by age, May 2018
Traditional viewing still mostly preferred, but younger adults are going online
Figure 25: Attitudes toward streaming video, by age and gender, May 2018
AUDIO OPTIONS
Key opportunity
Personal speakers important
Figure 26: Ownership of audio options, May 2018
Strong interest in smart audio
Figure 27: Interest in owning smart audio, May 2018
Parents looking for responsive audio options
Figure 28: Echo Spot – Be Together More, April 2018
Figure 29: Ownership of audio options, by parental status, May 2018
MOBILE DEVICES
Key opportunity
Ownership stable but still room to grow
Figure 30: Ownership and purchase intent of mobile devices, May 2018
Gender, age discrepancies show opportunity for mobile
Figure 31: Ownership of mobile devices, by age and gender, May 2018
COMPUTERS
Key opportunity
Laptops vs desktops
Mobility drives laptop preferences
Personalization important to development
Figure 32: Ownership and purchase intent of computers, May 2018
More demographic distinctions for desktop owners
Figure 33: Ownership of computers, by key demographics, May 2018
EMERGING TECH
Key opportunity
Home tech
Figure 34: Interest in home tech, May 2018
Outdoor tech
Figure 35: Interest in outside tech, May 2018
Gaming tech
Figure 36: Interest in gaming tech, May 2018
Augmented and virtual reality
Figure 37: Interest in AR and VR, May 2018
PURCHASE INFLUENCERS
Key opportunity
Trusting individuals over imagery
Figure 38: Purchase influencers, May 2018
Women respond to personal, men the digital
Figure 39: Purchase influencers – Select items, by gender, May 2018
Black, Hispanic consumers more responsive to ads
Figure 40: Purchase influencers – Select items, by race and Hispanic origin, May 2018
Parents want to educate themselves
Figure 41: Purchase influencers – Select items, by parental status, May 2018
ARTIFICIAL INTELLIGENCE
Key opportunity
Lack of trust could hurt AI interest
Figure 42: Attitudes toward artificial intelligence, May 2018
Young men most receptive to AI
Figure 43: Attitudes toward artificial intelligence, by gender and age, May 2018
Hispanics may be receptive to digital assistance
Figure 44: Attitudes toward artificial intelligence, by race and Hispanic origin, May 2018
ATTITUDES TOWARD TECH BRANDS
Key opportunity
Brand can trump cost
Figure 45: Attitudes toward tech brands, May 2018
Young men care more about brand
Figure 46: Attitudes toward tech brands, by age and gender, May 2018
Brand status important to parents
Figure 47: Attitudes toward tech brands, by parental status, May 2018
ATTITUDES TOWARD TECH PURCHASES
Key opportunity
Proving a product’s worth
Hesitant to convert interest into action
In-person proof still relevant
Demonstrating value outside mobile devices
Figure 48: Attitudes toward tech purchases, May 2018
Men always searching for new tech
Figure 49: Attitudes toward tech purchases – Select items, by gender, May 2018
Young adults seek dependability, convenience
Figure 50: Attitudes toward tech purchases, by age, May 2018
CONSUMER SEGMENTATION
Overview
Figure 51: Tech segmentation, May 2018
Trusting Technophiles (40%)
Demographics
Characteristics
Opportunities
Figure 52: Tech segmentation – Trusting Technophiles, by demographics, May 2018
Cautious Conservatives (32%)
Demographics
Characteristics
Opportunities
Figure 53: Tech segmentation – Cautious Conservatives, by demographics, May 2018
Brandphobic Bargainers (29%)
Demographics
Characteristics
Opportunities
Figure 54: Tech segmentation – Brandphobic Bargainers, by demographics, May 2018
APPENDIX – DATA SOURCES AND ABBREVIATIONS
Data sources
Sales data
Consumer survey data
Consumer qualitative research
Abbreviations and terms
Abbreviations
Terms