2013 accenture-consumer-electronics-products-and-services-usage-report


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2013 accenture-consumer-electronics-products-and-services-usage-report

  1. 1. It’s Anyone’s Gamein the ConsumerElectronics Playing FieldThe 2013 Accenture Consumer ElectronicsProducts and Services Usage ReportEnter w
  2. 2. Table of ContentsIntroduction 31. A Focus on Multi-Function Devices 72. Not Stuck on Any Single Platform 133. Cloud Services and Apps on the Rise 164. Mobile Devices Unstoppablein the Workforce 19The Way Forward:The “Superstack” Imperative 20Final Thoughts 21Appendix: Additional Charts of Interest 222013 Consumer Electronics Report || 22 Retweet Table of Contents Previous Next
  3. 3. With strong compound annual growth, the globalconsumer electronics industry remains bullish. Whileyounger consumers have, for years, been eager topurchase new technologies, older age groups areshowing optimistic purchase plans for 2013 as well.And emerging markets continue to Platform loyalty means little in their search online survey of more than 11,000strengthen their importance as consumers for the apps and services that best meet their consumers across 11 countries (Figure 1).in these markets remain active buyers with needs, whether in the home or on the go. This annual Accenture research is intendedstrong purchase intentions for 2013. But to help consumer technology executivesunderlying this growth is a competitive For six consecutive years, Accenture’s better understand the purchase patternsenvironment best characterized as an open Electronics & High Tech industry practice and use of consumer technologies, gainplaying field. Consumers are homing in on has conducted research to identify and deeper insights into global differences anda small set of multi-function devices, yet track consumer technology trends. This understand the implications for futurethey continue to experiment. year’s study, conducted in September and business performance. October of 2012, included a quantitative2013 Consumer Electronics Report | 3 Retweet Table of Contents Previous Next
  4. 4. Figure 1: Survey DemographicsGender Male 50% 50% FemaleAge 15% 18-24 Years >55 Years 26% 21% 25-34 Years 18% 45-54 Years 20% 35-44 YearsCountry UK (New in 2012) US 9% 9% South Africa Brazil 9% 9% Sweden 9% 9% Russia 9% 9% France India 9% 9% Germany 9% China JapanSource: The 2013 Accenture Consumer Electronics Products and Services Usage Report2013 Consumer Electronics Report | 4 Retweet Table of Contents Previous Next
  5. 5. The open playing field represented by thisyear’s consumer electronics purchase and usedata is underscored by four specific trends:1 3 Consumers are focusing on fewer, multiple- As consumers experiment and search for the function devices. Purchase intentions for single- technologies and services that best meet their function devices are flattening or declining as needs, cloud-based services and apps are showing smartphones, tablets, PCs and high-definition substantial increase in use. While a greater percentage televisions climb at double-digit rates. Smartphones of young consumers use online services than do older and tablets are accelerating the demise of most ones, a significant increase in use is occurring among single-function devices as consumers shift activities both generations. Among apps, financial apps (such as such as reading and watching movies from eBook mobile payments, banking and trading) and shopping readers and DVD players to their multi-use devices. apps are leading the growth in consumer usage.2 4 Consumers are not locked into any single platform. The increasing capabilities and rapid adoption Consumers know about the operating system of their of mobile multi-function devices are fueling the devices and they appreciate the concept of using a continued “consumerization” of IT in the workplace. single platform across devices. But the research does As consumers increasingly do multiple activities on their not suggest loyalty to a specific operating system. mobile devices, they are also choosing to use these Consumers are open to experimenting; virtually no devices for work purposes and finding productivity company or platform has a lock on their loyalty. improvements in doing so.The advent of smartphones, tablets and other mobile technologies hascreated a barrage of consumer activity and device adoption, providingconsumer electronics and related companies with ample opportunity toinnovate in device form factor, apps and online services. On the followingpages, we explore Accenture’s research findings in more detail and discussthe implications they have for companies as they navigate this open marketand work to win the hearts and wallets of consumers.2013 Consumer Electronics Report | 5 Retweet Table of Contents Previous Next
  6. 6. 2013 Consumer Electronics Report | 6 Retweet Table of Contents Previous Next
  7. 7. 1. A Focus on Multi-Function DevicesWhile the total number of product Figure 2: Purchase Intentionscategories per household remains stable,many consumers are narrowing their Which of these consumer electronics do you plan to purchase in the next 12 months?technology interest to those devices that Multiple response.serve multiple functions. Purchase plansfor 2013 are much more strongly focused 2012 (Planning to purchase in 2013) 50%on four product categories than in theprevious years: smartphones, tablets, PCsand high-definition televisions (HDTVs).In fact, there’s a greater separation inpurchase intent between these “Big 4” and 41%other devices than Accenture’s research hasever shown (Figure 2). 36% SmartphoneThe focus on multi-function devices alsoreveals itself in ownership trends. From PC*2011 to 2012 ownership of tablets among 33%those we surveyed doubled. Ownershipof digital cameras, DVD players, DVRs,portable music devices, portable gamedevices, and health and fitness devices 23% HDTV**remained flat or declined. When taking alonger view of trends from our research Tabletfrom 2009 to 2012, ownership of deviceslike smartphones, tablets and HDTVs grewstrongly as expected (Figure 3). Deviceswith decreasing ownership are single-useproducts, including portable music players, Digital photo camera 11% 11% GPS deviceDVD players and digital photo cameras,with functionality that is increasingly being Blu-ray DVD player 10% 10% Basic mobile phoneintegrated into multi-function devices.The contrast between ownership trends inmulti-function and single-function devices Health and fitness device 9% 9% eBook readeris in some cases staggering. For example,smartphone ownership increased from Digital video camera 8%26 percent in 2009 to 58 percent in 2012while ownership of digital photo cameras Game console 7% 7% Digital home music systemdecreased from 77 percent in 2009 to 68percent in 2012. 6% Portable music player Portable gaming device 4% 4% Regular TV - CRT or tube DVR 3% 3% DVD player - not Blu-ray* “PC” combines laptop, desktop, ultrabook and netbook.** “HDTV” combines HDTV and 3DTV.Sample base: Total sample (11,101)Source: The 2013 Accenture Consumer Electronics Products and Services Usage Report 0%2013 Consumer Electronics Report | 7 Retweet Table of Contents Previous Next
  8. 8. Figure 3: Ownership TrendsWhich of the following consumer electronics do you currently own? Multiple response. 26% 2009Smartphone 28% 48% 58% 2010 2011Tablet 8% 14% 2012 25% 45%HDTV* 51% 58% 62% 7% 14%Blu-Ray DVD player 18% 24% 22% 30%GPS device 31% 34% 6%eBook reader 7% 8% 14% 91%PC** 92% 90% 94% Increasing Ownership (above) Decreasing Ownership (below) 29%Digital video camera 26% 24% 26% 44% 39%Portable music player 40% 40% 27%Health and fitness device 27% 21% 20% 20%DVR 20% 13% 77% 75%Digital photo camera 73% 68% 63%Regular TV-CRT or tube 55% 43% 47% 84%Basic mobile phone 75% 58% 64% 72%DVD player - not Blu-Ray 64% 54% 44%* “HDTV” combines HDTV and 3DTV.** “PC” combines laptop, desktop, ultrabook and netbook.Sample base: Total sample US, Japan, Germany, France, China and India (~6,000 respondents every year)Source: The 2013 Accenture Consumer Electronics Products and Services Usage Report2013 Consumer Electronics Report | 8 Retweet Table of Contents Previous Next
  9. 9. This data implies that over time mass- Figure 4: Use of Other Devices After Owning a Tabletmarket single-function devices will beincreasingly at risk. Exploring this trend we Do you use your other devices more or less after purchasing your tablet?asked respondents about how their usageof other devices changes upon purchasing Use more Use the same Use lessa tablet. In other words, what don’t theyuse once they have the tablet? The largest 20% 11% 19% 23% 13% 25%drop in usage of other devices amongtablet owners occurs in single-function 49% 55%devices (Figure 4). About 40 percent of 37% 47%tablet owners use eBook readers and 44% 51%DVD players less often. In contrast, multi-function devices aren’t showing thisdecline. Only 24 percent of consumersuse their smartphone less as a result ofowning a tablet; an equal share increases 43% 40%use of their smartphone. 34% 33% 32%In our comparable year-over-year sample 24%of six countries, device usage is alsoconcentrating on multi-function products(Figure 5). The PC remains the most-used eBook Reader DVD Player DVR PC (desktop - TV Smartphonedevice, but smartphones and HDTVs tie for laptop - netbook - Base: 900 Base: 1,800 Base: 744 Base: 2,570 Base: 2,290second, with 55 percent of respondents ultrabook)ranking them among the five most-used Base: 2,584devices. While some consumers may not Sample base: Device ownersconsider the TV to be a multi-function Source: The 2013 Accenture Consumer Electronics Products and Services Usage Reportdevice, those with an HDTV are increasinglyusing it that way. More than two-thirds ofHDTV owners with Internet access have usedtheir TV for Internet browsing, and morethan one-third do it regularly (Figure 6).Figure 5: Most Frequently Used DevicesOf the consumer electronics devices you currently own, please rank the top five that you use most often.Top five products used in 2012 and percentage point change from 2010 to 2012.PC 91% +2HDTV 55% +8 Significant level orSmartphone 55% +30 growth in usageTablet 17% +14eBook reader 6% +5Game console 13% +4GPS 12% +1 Increase between 2010 and 2012Blu-Ray DVD player 9% +4Basic mobile 50% -17 Decrease between 2010 and 2012Digital photo camera 36% -15Regular TV 33% -8 Sample base: Total sample (US, Japan,Portable music player 17% -4 Germany, France, China and India)DVD player 15% -15 2010: 6,001Health and fitness device 7% -2 2012: 6,057Digital video camera 5% -2 Source: The 2011 and 2013 Accenture Consumer Electronics Products and Services Usage ReportsPortable gaming device 5% -3DVR 5% -52013 Consumer Electronics Report | 9 Retweet Table of Contents Previous Next
  10. 10. Figure 6: How HDTV Is UsedPlease indicate how you use your Internet-connected HDTV for the following activities. 36% 24% 20% 17% Use it on a regular basis (weekly or more) Use it occasionally Have tried it once or twice Have never tried it 21% 25% Sample base: 3,430 (Owners of HDTV 30% with Internet connectivity) Source: The 2013 Accenture Consumer Electronics Products and Services Usage Report 19% 13% 15% 49% 14% 15% 40% 31% 31% General web View personal Access apps Access streaming browsing content such as services like Netflix photos and SpotifyRegarding activities that consumers of consumers use maps, listen to stored Furthermore, activities conducted onspend time doing each week, some music and download new apps on their mobile devices that were once consideredactivities­ particularly those that are — PCs, about half also do so on their mobile “emerging” are becoming more mainstreamwell established among consumers, like or smartphones (Figure 7). When it comes (Figure 8). Almost half of consumersemailing and texting—are predominantly to watching shows and movies on demand, already do or plan to make payments inconducted on a single device. However, the use of the PC and TV are nearly tied: stores using a mobile phone or tablet andmany activities are now done on 53 percent use their PC while 56 percent about one-third do or plan to control homemultiple devices, demonstrating use TV. This flexibility to use any device is audio/video and home security with theirconsumers’ comfort with using the so important that half of consumers would mobile device.device that is most handy at the consider paying extra to watch TV shows ortime. For example, while a majority movies on their computer.2013 Consumer Electronics Report | 10 Retweet Table of Contents Previous Next
  11. 11. Figure 7: Device UsageWhat device do you use for your activities? Multiple response.Device usage on the top 10 most popular activities. 92% PC (Desktop - laptop -Emailing  38% netbook - ultrabook) 14% 2% Mobile phone - smartphone 88% Tablet computerSearching for/reading general news 35%and information on the Internet 14% 14% TV 28%Texting - SMS - MMS 87% 7% 2% 93%Online banking and finance 21%management (checking account, 11%making transfers, paying bills) 3% 20%Watching broadcast TV or cable 6%shows (at the time they are 5%broadcast) 85% 93%Online shopping - eCommerce 16% 13% 3% 69%Using maps and global positioning; 48%getting directions 13% 4% 68%Listening to music stored 52%on my device 14% 9% 81%Playing games 40% 18% 11% 83%Connecting with people/playing 39%games on social networking sites 17% 5% 62% 58%Downloading and using new apps 25% 4% 53%Watching shows - movies - 11%videos on demand 13% 56%Sample base: Respondents conducting the activitySource: The 2013 Accenture Consumer Electronics Products and Services Usage Report2013 Consumer Electronics Report | 11 Retweet Table of Contents Previous Next
  12. 12. Figure 8: Activities Conducted on Mobile DevicesDo you do any of the following over your mobile device (phone or tablet)? 45% 24% Yes No, but planning to 35% 34% 13% 12% 30% 29% 8% 10% 22% 22% 21% 21% 20%Make payments Control home Monitor - Monitor - Transfer healthin stores audio/video control home control heating/ data (test systems locking systems air-conditioning results) to a systems remote locationSample base: Respondents owning a smartphone or a tablet (7,080)Source: The 2013 Accenture Consumer Electronics Products and Services Usage Report2013 Consumer Electronics Report | 12 Retweet Table of Contents Previous Next
  13. 13. 2. Not Stuck on Any Single PlatformMost consumers are aware of the name of Yet, our data shows that platform users are strong users by coincidence: They say theythe operating system (OS) they have on their not as loyal as the “platform war” stories don’t have a preferred OS or don’t caredevices, especially on their smartphones in the media indicate. While the majority what operating system they have.(Figure 9). It is also clear that to most are aware of the OS they have on devices,consumers, operating system is an important less than half of consumers think it’s very Furthermore, strong users offer morefeature. When buying a new device, important to stay within one operating reasons than the overall consumer sampleconsumers prioritize price, device features system for their devices (Figure 10). To as to why they would buy devices on othersuch as screen size and resolution, and investigate this trend further, we analyzed platforms (Figure 11). About one-third ofnow, more frequently, security. However, the responses of a segment of respondents strong users indicate they would switch to 100% 98% 98%operating system is also among the top five we labeled “strong users” of a single another OS to see what else is out there in 95% 93% the 89% market, to find a better user experienceselection criteria for PCs and tablets. While platform, defined as those owning at leasttouch screen and look and feel rank higher two devices that use the same operating or to get access to more innovative servicesin importance than operating system for system (see page 14: “Strong User and applications. Continued curiosity andsmartphones, OS is within the top seven Methodology”). Among the strong users of the drive for innovative services and userselection criteria for these devices as well. a single platform, only half think it’s very experiences appear to be more compelling(See Appendix Figure D.) important to stay within one operating than loyalty to any particular platform system for their devices. In fact, about in the market today—creating more one-fifth of this group actually seems to be opportunity for market players. Figure 9: Consumer Awareness of Operating SystemsPercentage of consumers surveyed that know the operating system of their devices: 100% 98% 98% 95% Smartphone Netbook 93% 89% Tablet Laptop computer Ultrabook Desktop computer Sample base: Device owners (10,818) Source: The 2013 Accenture Consumer Electronics Products and Services Usage ReportSmartphone NetbookTablet Laptop computerUltrabook Desktop computer 2013 Consumer Electronics Report | 13 Retweet Table of Contents Previous Next
  14. 14. Figure 10: Importance of Staying Within One Operating SystemHow important is it for you to have all or almost all your devices using the same operating system? Total sample Strong users 17%Extremely important 22% 44% 52% 27%Very important 30% 33%Somewhat important 31% 16%Hardly important at all 13% 7%Not at all important 4%Sample base: Total sample (11,101) Strong users (1,388)Source: The 2013 Accenture Consumer Electronics Products and Services Usage Report“Strong User” MethodologyTo investigate the extent to which consumers have settled for a “Strong users” are defined as consumers owning:single operating system for their devices, and how the views ofconsumers who have done that differ from the rest, we created • At least two devices with the same operating system, eithera segment of respondents we labeled “strong users” of a single iOS (Apple), Android (Google-owned, used on multiple deviceplatform. The following question was used to identify strong users brands) or Windows (Microsoft-owned, used on multiple deviceof a specific operating system: Which operating system(s) do you brands)have on the following devices (smartphone, tablet, ultrabook, • No more than one device using another operating systemnetbook, laptop, desktop)? Consumers owning desktops, laptops or netbooks with Windows have been excluded from the analysis due to the predominance of Windows PCs in the market. Strong users account for 13 percent of the total sample.2013 Consumer Electronics Report | 14 Retweet Table of Contents Previous Next
  15. 15. Figure 11: Reasons for Switching to Another Operating SystemComplete the sentence with all that apply in the list:“Most of my mobile and computing devices use the same operating system. When buyinga new device I might consider getting one with a different operating system because...” Total sample Strong users 24%I want to see what else is out there on the market 31%I think I could have a better user experience with 23%another operating system 31%I think I could get access to more innovative 23%services and applications 32%I think another operating system would 16% 66%mean less hassle 21% 79% 15%I believe I could get a lower cost if I switched 19%I think switching would bring me to a higher 14%security level 18%I think I could get a better synch with my 6%in-car solution 10%I dont have a dominant or preferred 20%operating system 15%I dont know or care what operating system 14%I have on my devices 6%Sample base: Total sample (11,101) Strong users (1,388)Source: The 2013 Accenture Consumer Electronics Products and Services Usage Report2013 Consumer Electronics Report | 15 Retweet Table of Contents Previous Next
  16. 16. 3. Cloud Services and Apps on the RiseOur platform data shows that consumers cloud services and apps. In 11 of 15 As an activity, using maps, global positioningare open to experimenting in search of the activities queried, the percentage of and getting directions showed dramaticmost satisfying devices and experiences. consumers we surveyed doing the activity growth, gaining 20 points since 2010 (seeThis search extends to the cloud. After in a typical week increased from 2010 to below: “Global Positioning: Evolving Fromall, if the typical consumer is not staying 2012, sometimes substantially. Reading Device to Differentiating App”).within one platform for all devices, then electronic books gained seven points,using cloud-based services that are searching for information on the Internet As the industry considers how to engageaccessible from all platforms is quite gained 19 points and texting gained nine more fully in cloud services and apps, thelogical. A significant increase in use of points. The percentage of consumers interests of the strong users from our surveyonline services has occurred in just one tweeting or micro-blogging in a typical may provide helpful guidance, as theseyear (Figure 12). Usage increased—in many week has doubled in two years, fueled users demonstrate a curiosity and opennesscases substantially—for all eight of the largely by growth of micro-blogging in to innovation and experimentation. Sixtyonline services we queried: online mailbox emerging markets. More than half of percent of strong users we surveyed alreadyservices, games, photo storage, movie Chinese consumers we surveyed reported do or plan to make payments in stores fromstreaming, data backup, music streaming, they micro-blog in a typical week. their mobile devices. Half of those strongcalendaring and document creation. While users do or plan to control home lockinga greater percentage of young consumers Among the activities consumers are doing systems and home audio/video systems fromuse online services than do older ones, a each week, they are more and more often their mobile device. More than 40 percent dosignificant increase in the use of cloud- downloading new apps (Figure 13). The or plan to transfer health data to a remotebased services is occurring among both percentage of consumers we surveyed location, such as test results from theirgenerations. downloading apps in a typical week has mobile device, and the same amount do or increased eight points from 2010 to 2012. plan to control heating and air-conditioningConsumer use of technology is becoming Among apps, usage of financial apps (such systems from their mobile device.more pervasive, driven by adoption of as mobile payments, banking and trading)more capable multi-function devices, a and shopping apps are leading the way.growing technology maturity, and newGlobal Positioning: Evolving From Device to Differentiating AppSince its introduction as a consumer device just over two decades Despite the cautious outlook for GPS devices, the activitiesago, the Global Positioning System (GPS) has progressed through its of using web-based maps and global positioning and gettinglife cycle from being a highly popular stand-alone device to slowly directions are showing dramatic growth, gaining 20 pointsbeing replaced by map apps on a multitude of other consumer since 2010. Together they show the greatest relative growth indevices. GPS device ownership continues to grow slowly (34 percent participation of all the technology-based activities Accentureown GPS devices now compared with 32 percent in 2011), but queried. Today, almost half (47 percent) of consumers wegrowth is certainly not at the rate of newer mobile technologies surveyed use global positioning in a typical week. To do so, 69or even stationary devices such as Blu-Ray DVD players. percent use a PC, 48 percent use a mobile or smartphone, and 13 percent use a tablet; 35 percent have a factory-installedBy all indications, purchase rates for new GPS devices are slowing. GPS device in their car and 43 percent would like to have a GPSOnly seven percent of consumers purchased a GPS in the past device installed in their next car. So while the GPS device is12 months compared with 10 percent the prior year. Across the highly popular, its preferred form is now in a software app on asample of six countries that have been surveyed for multiple years, multi-function device.eight percent plan to purchase a GPS device in 2013 compared to10 percent who planned to purchase one in 2009.2013 Consumer Electronics Report | 16 Retweet Table of Contents Previous Next
  17. 17. Figure 12: Use of Online ServicesWhich of the following online services do you use? Multiple response. 77%Online mailbox service 75% 41%Online games 37% 37%Online photos - video storage 26% 35%Movies - shows streaming 26% 30%Online data backup - storage 18%Music streaming 29% 24%Online calendar 27% 16% 27% 2012Online document creation (e.g., Google Docs) 17% 2011None of these 12% 12%Sample base: Total sample, excluding UK, for full comparison (10,099)Source: The 2013 Accenture Consumer Electronics Products and Services Usage Report2013 Consumer Electronics Report | 17 Retweet Table of Contents Previous Next
  18. 18. Figure 13: Activities Done in a Typical WeekPlease indicate which of the following activities you do in a typical week. Multiple response.Searching for/reading general news and 80% 2012information on the Internet 61% 2010 78%Emailing  82%Online banking and finance management 58%(checking account, making transfers, paying bills) 51%Texting - SMS - MMS 58% 49%Watching broadcast TV or cable shows 53%(at the time they are broadcast) 44% 48%Listening to music stored on my device 39%Using maps and global positioning; 47%getting directions 27% 42%Playing games  40%Connecting with people/playing games on social 40%networking sites 39% 37%Downloading and using new apps 29% 36%Managing personal digital photos and videos  35% 35%Listening to streaming music 29% 25%Reading electronic books  18%Tweeting - micro-blogging 23% 11%Managing your health or that of family members 15% 26%Sample base: Total sample, excluding UK, South Africa and Sweden which were not in the 2010 sample2010: 8,0022012: 8,058Source: The 2011 and 2013 Accenture Consumer Electronics Products and Services Usage Reports2013 Consumer Electronics Report | 18 Retweet Table of Contents Previous Next
  19. 19. 4. Mobile Devices Unstoppable in the WorkforceThe increasing capabilities and rapid adoption of mobile multi–function devices are fuelingcontinued consumer influence and control over devices and applications used in the workplace.Not only are consumers using these devices for work purposes, but they are finding productivityimprovements in doing so.Consider, for example, how consumers use Perhaps not surprising, generational this generation’s lives.1 Ninety percent oftheir smartphone for work purposes: Of preferences are clear in how consumers Gen Y surveyed worldwide said they checkthose we surveyed, 82 percent text and communicate using technology. Consumers their smartphones for updates in email,66 percent email. But nearly one-third we surveyed across generations use email texts and social media sites as part of theiralso use their smartphone for work-based to communicate for work purposes. Yet morning ritual for getting ready for schoolsocial networking on sites such as LinkedIn a smaller percentage of 18-24-year-olds or work, often before they get out of bed.and for using collaboration tools. Fourteen (73 percent) use email in a typical week They connect to live, checking for workpercent even do video conference calls than their slightly older peers. Instead, updates and communicating at all hoursby smartphone. The trends are similar in to communicate digitally, 18-24-year- from every place imaginable. For this agehow consumers use their tablets for work olds are doing significantly more texting, group, the lines between work and personalpurposes. Using their tablets, 64 percent connecting with people over social media life are forever blurred.email for work, 39 percent use work- networks and tweeting on their devicebased social networks, 33 percent use than older generations. Usage of the socialcollaboration tools, 25 percent conduct networking sites (public and corporate) andvideo conferences and 23 percent conduct collaboration and conferencing tools forvoice conferences. work purposes is higher among younger 1. Cisco press release, 12 December, 2012: “Toothpaste, Toilet Paper, and Texting – Say Good consumers surveyed, who also rank the Morning to Gen Y,” http://newsroom.cisco.com/The majority of respondents believe using release/1114955 productivity improvement from using socialtheir consumer devices for these various work networking sites higher.purposes improves their productivity. Nearly60 percent say it improves their productivity This finding aligns closely to a recent Ciscoto take conference calls and use collaboration study that reveals how the need for Gen Ytools from their personal devices. to stay connected drives every facet of2013 Consumer Electronics Report | 19 Retweet Table of Contents Previous Next
  20. 20. The Way Forward: The “Superstack” ImperativeThe trends identified in this year’s research confirm that the growth in purchase and use ofsmart, multi-functional devices has brought the platform (or operating system) into the consumerspotlight like never before. Yet, as much as consumers clearly appreciate the seamless userexperience across devices and the easy installation and deployment that come with consistentuse of a single platform, they don’t seem interested in getting locked into one solution whenthere is so much development going on in the market.As consumer technology companies Executives across the consumer technology Our research indicates the time is rightcontinue to chart their course, they must industry are looking at whom they compete to focus on apps and cloud services in ahave a clear niche for the single-function and cooperate with in a new and more more extensive way and in the context ofdevices they offer. Single-function devices holistic way. We’ve seen Intel absorb achieving the superstack that consumerswill continue to have a place as the McAfee to integrate security solutions2 and value. With Internet-connected appssource of new innovations. For example, Nokia acquire earthmine inc. to improve its embedded in home and personal devicesthe purchase intent for health and fitness 3D map-making capabilities,3 just to name from televisions to thermostats, the appsmonitoring devices rose significantly—and a couple of examples. In a world driven and services consumers value may bemany of these need specific sensors that by mobile, cloud and consumerization, as important—and drive more purchasemay keep them stand-alone for a while. companies must envision their future decisions—than the device. This may meanOver time, however, we are likely to see the development more strategically, across all that to stay relevant, device makers needrapid integration of many new capabilities layers, and effectively and tightly integrate to work across their ecosystems to combineinto multi-function devices. At the same a vertical “superstack” of chipsets, devices, the best features of the platform (seamlesstime, different form factors for multi- operating systems, applications and experience and content transfer) withfunction devices will emerge as technology services either on their own or through cloud-based, platform-agnostic servicescompanies innovate in hopes of identifying acquisitions and innovative alliances. and functionality to provide consumersthe combination of form and function that with the flexibility they desire.consumers desire. 2. Intel press release, 10 August 2010: http://newsroom.intel.com/community/intel_ newsroom/blog/2010/08/19/intel-to-acquire-mcafee 3. Nokia press release, 21 November, 2012: http://press.nokia.com/2012/11/21/nokia- completes-acquisition-of-earthmine-inc2013 Consumer Electronics Report | 20 Retweet Table of Contents Previous Next
  21. 21. Final ThoughtsAcross geographies and market segments, demand for consumer technologies remains high.In the shifting landscape of increasingly multi-function devices, and compelled by consumerwillingness to experiment, industry players have tremendous opportunity to change the gameto win. Innovating on the superstack to deliver compelling new form factors, apps and cloudservices that further embed the use of technology into consumers’ lives will be critical. Thenature of the applications will expand from entertainment and communications to financialservices, home management and productivity.To compete in this playing field, many consumer technology players will need to fundamentallyrestructure their approach to R&D to focus on the creation of the superstack, with emphasis onthe ability to do the needed software development for the apps and services. For many, it willalso mean more flexible operations to support rapid response to shifting market demand and theproduction and distribution of more varied and differentiated devices. Finally, customer-centricityis paramount in designing compelling user experiences and establishing the right ecosystem todeliver them.The combination of intense desire for innovation and willingness to experiment with platformsand brands opens up tremendous opportunities for consumer electronics companies to win thehearts and wallets of consumers. Future winners will be those companies that identify and createcohesive consumer technology superstacks through innovation and integration of computingform factor, cloud services and highly versatile apps.2013 Consumer Electronics Report | 21 Retweet Table of Contents Previous Next
  22. 22. Appendix:Additional Charts of Interest2013 Consumer Electronics Report | 22 Retweet Table of Contents Previous Next
  23. 23. DVD player - not Blu-Figure A: Purchases in Last 12 Months DVRWhich of these consumer electronics have you purchased in the last 12 months? Multiple response. 32% 2012Smartphone 34% 2011 26%PC* 25% 19%HDTV** 21% 14%Basic mobile phone 16% 12%Tablet 7% 11%Digital photo camera 18% 7%GPS device 10% 6%Portable music player 7% 6%eBook reader 4% 6%Game console 7% 5%Blu-Ray DVD player 5% 5%Health and fitness device 7% 4%Regular TV - CRT or tube 4%Digital video camera 4% 5% 4%Portable gaming device 4% 4%DVD player - not Blu-Ray 6%DVR 2% 4%* “PC” combines laptop, desktop, ultrabook and netbook.** “HDTV” combines HDTV and 3DTV. 2012Sample base: Total sample, excluding UK, for full comparison2012:2011 10,0992011: 10,021Source: The 2012 and 2013 Accenture Consumer Electronics Products and Services Usage Reports2013 Consumer Electronics Report | 23 Retweet Table of Contents Previous Next
  24. 24. Figure B: Purchase Intentions in Mature and Emerging MarketsWhich of these consumer electronics do you plan to purchase in the next 12 months? Multiple response. 33%Smartphone 50% 29%PC* 43% 20%HDTV** 46% 16%Tablet 31% 8%Digital photo camera 15% 6%GPS device 16% 10%Basic mobile phone 10% 7%Blu-Ray DVD player 13% 7%eBook reader 13% 5%Health and fitness device 14% 3%Digital video camera 12% 6%Game console 9% 3%Digital home music system 11% 4%Portable music player 8% 3%Portable gaming device 6%Regular TV - CRT or tube 4% 4%DVR 2% 5% Mature markets: Germany, France, Japan, Sweden and US 2%DVD player - not Blu-Ray 4% Emerging markets: Brazil, Russia, India, China and South Africa* “PC” combines laptop, desktop, ultrabook and netbook.** “HDTV” combines HDTV and 3DTV.Sample base: Total sample (11,101)Source: The 2012 and 2013 Accenture Consumer Electronics Products and Services Usage Reports 2013 Consumer Electronics Report | 24 Retweet Table of Contents Previous Next
  25. 25. Figure C: Average Spending (Last 12 Months and Planned)In the past 12 months approximately how much have you spent on consumerelectronics? And how much do you plan to spend in the next 12 months? China $1,251 Average spent in the past 12 months (USD) $1,489 Purchase plans in the next 12 months (USD) $1,080 Brazil $1,323 $1,046 Russia $1,225 Japan $1,031 $1,068 $1,012 India $1,289 $940 South Africa $1,164 $927 Germany $1,082 $904 France $957 $869 Sweden $1,010 $848 US $970 $847 UK $960Sample base: Total sample (11,101)Source: The 2013 Accenture Consumer Electronics Products and Services Usage Report 2013 Consumer Electronics Report | 25 Retweet Table of Contents Previous Next
  26. 26. Figure D: Importance of Features to Purchase DecisionHow important are the following features when determining what products to purchase in the below categories?Extremely important/important features PC Tablet TV SmartphonePrice 75% 69% 73% 68%Security solution against hackers, identity theft, etc. 71% 66% 41% 65%Screen resolution 67% 63% 72% 61%Size of screen 64% 59% 72% 58%Operating system (e.g., iOS, Android, Windows) 63% 57% 28% 54%Easy (”Plug and play”-type) setup to connect 55% 53% 50% 50%with my other devicesNewest technology to reduce power consumption 53% 52% 58% 49%(e.g., OLED)Device size 53% 55% 60% 56%Product brand 48% 46% 50% 50%Design/look and feel 47% 51% 54% 57%Ability to use favorite social networking application 46% 45% 19% 43%Range of available applications (apps) for download 42% 49% 22% 49%Ability to use your preferred payment solutions 41% 37% 25% 34%(e.g., PayPal)Shareable photo solution 35% 34% 19% 37%Ability to use your preferred streaming music service 31% 30% 23% 31%Ability to synchronize content with your in-car system 30% 34% 21% 36%Shareable video solution 28% 28% 23% 27%Touchscreen 27% 54% 17% 54%Voice recognition technology 21% 23% 18% 28%3D screen 19% 19% 29% 17%Sample base: Total sample (11,101)Source: The 2013 Accenture Consumer Electronics Products and Services Usage Report2013 Consumer Electronics Report | 26 Retweet Table of Contents Previous Next
  27. 27. Figure E: Apps in UseAre you using any of the following types of apps? Have stopped using Do not use or plan to use Plan to use in the next 12 months Currently useInformation (e.g., news, weather, sports) 3% 24% 8% 65%Navigation (e.g., maps, guides) 4% 28% 15% 53%Entertainment (e.g., music, single or 4% 34% 11% 51%group games, videos)Financials (e.g., mobile payments, banking, 4% 33% 13% 50%trading)Networking (e.g., social/professional networks) 5% 35% 11% 50%Shopping (e.g., groceries, clothes, shoes, auctions) 4% 34% 16% 46%Work related 6% 42% 12% 41%Traveling (e.g., airplane - train tickets, 5% 38% 20% 36%traffic updates)Personal organization (e.g., weekly planning, 6% 45% 16% 33%household bookkeeping, budget calculator)Leisure activities (e.g., event dates, cooking, 5% 49% 16% 30%booking restaurants)Education (e.g., language learning programs, 6% 50% 18% 26%reference works)Fitness and health (e.g., health records, training 6% 53% 19% 23%planning, nutrition guide)Sample base: Total sample, excluding UK, for full comparison (10,099)Source: The 2013 Accenture Consumer Electronics Products and Services Usage Report2013 Consumer Electronics Report | 27 Retweet Table of Contents Previous Next
  28. 28. Accenture is a global managementconsulting, technology services andoutsourcing company, with approximately259,000 people serving clients in morethan 120 countries. Combining unparalleledexperience, comprehensive capabilitiesacross all industries and business functions,and extensive research on the world’smost successful companies, Accenturecollaborates with clients to help thembecome high-performance businesses andgovernments. The company generated netrevenues of US$27.9 billion for the fiscalyear ended Aug. 31, 2012. Its home pageis www.accenture.com.Copyright © 2013 Accenture This document is produced by consultants at AccentureAll rights reserved. as general guidance. It is not intended to provide specific advice on your circumstances. If you requireAccenture, its logo, and advice or further details on any matters referred to,High Performance Delivered please contact your Accenture representative.are trademarks of Accenture.