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Consumer Devices Survey Technology Enthusiasts Consumer Devices Survey Technology Enthusiasts December 2017 Contents . Survey Respondents . Smartwatches . Virtual Reality Headsets . Smart Speakers . Smart Home Devices . Fitness Trackers . Other Devices . Future Purchase Intentions Consumer Devices Survey, Technology Enthusiasts © CCS Insight 2 Survey Respondents Consumer Devices Survey, Technology Enthusiasts © CCS Insight 3 Research Conducted in the US, UK and Germany Total Respondents 2,192 US UK 1,097 548 . Online survey . Conducted in October 2017 Germany 547 Consumer Devices Survey, Technology Enthusiasts © CCS Insight 4 Research Sample Targeted Technology Enthusiasts . Goal: identify technology enthusiasts, identify devices they own and how they use them . To be included, respondents were required to own at least two of the following devices: . Smartwatch . Virtual reality (VR) headset . Fitness tracker . Streaming video device (for example, Amazon Fire TV, Google Chromecast or Apple TV) . Smart home device (for example, Phillips Hue lights, Nest thermostat or Ring smart doorbell) . Smart speaker (for example, Amazon Echo or Google Home) . Other criteria: – About 50% of the sample in each market own a smartwatch – Sample includes at least 100 VR headset owners across the three countries . We emphasise that this sample's adoption and usage of these devices do not reflect the total market Consumer Devices Survey, Technology Enthusiasts © CCS Insight 5 Summary of Findings . Higher than expected ownership of devices in the technology enthusiast sample – On average, 7.2 different individual types of device were owned by respondents . General satisfaction with smart devices was high in all three countries – US respondents were the most satisfied, followed by those in the UK and Germany . We believe cultural differences contributed to this variance . Abandonment was very low among the technology enthusiasts we identified – Less than 10% of owners of smart devices stopped using their devices . For the leading brands in smartwatches, fitness trackers and VR headsets, physical retail stores remain an important channel in the US and UK – Online channels were more dominant in Germany . Potentially an opportunity for key players such as Apple to expand their retail coverage there Consumer Devices Survey, Technology Enthusiasts © CCS Insight 9 Summary of Findings . Many technology enthusiasts still do not see any point in owning smartwatches or VR headsets – Only 10% of non-smartwatch owners plan to buy a smartwatch; 12% of non-owners plan to buy a VR headset – Concerns about technological capabilities such as battery life were very low . Main points of contention were not knowing what they would use them for and the price . Despite being identified as technology enthusiasts, two out of three respondents had to try a VR headset before buying it – Emphasises importance of "try before you buy" for this type of product, particularly when selling to a wider audience beyond technology enthusiasts . Half of respondents owned a smart speaker – Amazon Echo devices accounted for over three-quarters of smart speakers in our sample – An average user had 1.5 smart speakers in their household and daily usage was very high . 28% of our total sample owned a smart home device – Each of those respondents on average owned 2.6 smart home products – Control and convenience are the most important reasons to buy such devices Consumer Devices Survey, Technology Enthusiasts © CCS Insight 10 Smartwatches Consumer Devices Survey, Technology Enthusiasts © CCS Insight 11 Smartwatches: Summary of Findings . In the US and the UK, more than half of the smartwatch owners had an Apple Watch – Ownership is more evenly split in Germany, where Samsung, Garmin and Polar brands are stronger . About a fifth of all smartwatch owners in three countries have a Samsung Gear smartwatch . Apple has a significantly higher attach rate for smartwatches than other smartphone brands . Physical retail stores remain an important channel for smartwatch sales in the US and the UK . Apple Watch and Samsung Gear owners were the most engaged users of smartwatches; US respondents were the most engaged, followed by the UK and Germany – Engagement was based on usage, with high engagement equating to use every day or most days . Apple's focus on sports and activity tracking has driven usage of its smartwatches – However, this signals the challenge of selling smartwatches to less-active members of the population . Only 4% of the 1,105 smartwatch owners we spoke to have stopped using their smartwatch . Most non-smartwatch owners remain unconvinced about smartwatches – Only 10% of non-smartwatch owners plan to buy one Consumer Devices Survey, Technology Enthusiasts © CCS Insight 12 Virtual Reality Headsets Consumer Devices Survey, Technology Enthusiasts © CCS Insight 28 VR Headsets: Summary of Findings . Two out of three of the technology enthusiasts we spoke to had to try a VR headset before making a decision to buy one – Emphasises the importance of letting people try VR before purchase – Strong sales in the US appear to reflect owners having tried the technology in store . Gaming remains the low-hanging fruit for VR, particularly for dedicated VR headsets like Oculus Rift . The majority of VR sessions last from 5 to 30 minutes – Lower than expected VR content "snacking" indicates users are very engaged when gaming . Samsung Gear VR has surprisingly high engagement levels similar to more-expensive dedicated headsets – This is a testament to the work Samsung and Oculus have done with the product . Almost 80% of dedicated VR headset owners have purchased some form of VR content – Half of Cardboard-based VR headset owners have never paid for VR content . Most technology enthusiasts do not see the point of owning a VR headset – Only 12% plan to buy one; we believe this figure could be improved if they tried the technology Consumer Devices Survey, Technology Enthusiasts © CCS Insight 29 Smart Home Devices Consumer Devices Survey, Technology Enthusiasts © CCS Insight 54 Smart Home Devices: Summary of Findings . 28% of our total sample (613 technology enthusiasts) own a smart home device – On average, each of them owns 2.6 devices – Smart heating solutions and smart lights were the most popular device categories . Beyond these, there was a relatively even ownership split across smart home devices . Control when away from home and convenience are the most important reasons for purchase – Savings on utility bills and security are also important considerations . On average, each respondent plans to purchase two more smart home devices in the next 12 months – We observed no significant difference between markets – There are clear opportunities in multiple smart home device categories Consumer Devices Survey, Technology Enthusiasts © CCS Insight 55 Smart Home Device Ownership Which smart home device do you own? Smart heating thermostat 50% Smart lights 45% Smart doorbell 23% Smart smoke alarm 23% Smart camera 21% Smart burglar alarm 20% Smart meter 20% Smart plug 20% Smart weighing scales 17% Smart door or window locks 16% Other 5% . Beyond smart heating and smart lights, smart home device ownership is very evenly split Base: All respondents who own at least one smart home device (613). Q: Which smart home device do you own? Consumer Devices Survey, Technology Enthusiasts © CCS Insight 57 Smart Home Device Intentions to Purchase Which smart home device would you buy within the next 12 months? Smart door or garage locks 23% Smart doorbell 23% Smart burglar alarm 22% Smart camera 21% Smart lights 21% Smart heating thermostat 21% Smart meter 19% Smart smoke alarm 19% Smart plug 17% Smart weighing scales 11% Other 3% I am not planning to add any 17% . On average, existing smart home device owners plan to buy two more smart home devices within the next 12 months – The even split of interest across multiple device categories is extremely positive for smart device makers – There is no significant difference between markets Base: All respondents who own at least one smart home device (613). Q: If you are planning on expanding your smart home, which devices do you plan to add within the next 12 months? Consumer Devices Survey, Technology Enthusiasts © CCS Insight 60 Intention to Purchase Other Devices Technology enthusiasts' intentions to buy devices they do not already own Base: 1,097 Base: 548 Base: 547 Smart home device 12% 9% 11% Smart speaker 10% 13% 10% Smart TV 9% 9% 6% Virtual reality headset 7% 9% 9% Smartwatch 6% 7% 6% Action camera 4% 5% 6% Drone 4% 4% 6% Fitness tracker 4% 4% 6% E-book reader 3% 2% 4% Tablet 3% 2% 3% Streaming video devices 2% 2% 3% Laptop 2% 1% 0% Smartphone 1% 1% 1% . Strong interest in smart devices for the home: smart home device, smart speaker, smart TV Base: All respondents (2,192). Q: You told us that you don't own these devices. Which of them do you think you will buy next? Consumer Devices Survey, Technology Enthusiasts © CCS Insight 79 [email protected] ccsinsight.com @ccsinsight.
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