1. Finding a Home within Home
Automation…
What we can learn from Early Adopters
Dr. John Feland, CEO

2. Page 2© 2014 Argus Insights, Inc. Confidential: Do Not Distribute
(Really) Brief Intro to Argus Insights
COLLECT REPORTANALYZ
E
TAKE
ACTION
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0
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Qtr1 Qtr2 Qtr3 Qtr4 Qtr1 Qtr2 Qtr3 Qtr4 Qtr1 Qtr2
2011 2011 2011 2011 2012 2012 2012 2012 2013 2013
MillionsofiPhones;BillionsofdollarsinRevenue
BuzzVolumeforiPhoneModels
Argus Insights Beat Wall Street Estimates for
Q2 2013 iPhone Sales
Copyright© 2013 Argus Insights, Inc.
Consensus
Morgan Stanley
Argus Insights
Estimate BasedApple’s Actual Q2
iPhone Unit Volume
• Mobile Phones
• Home Automation
• Consumer Electronics
• Wearables
• Appliances, Large and Small
• Consumer Services
• CPG and more!

3. Page 3© 2014 Argus Insights, Inc. Confidential: Do Not Distribute
Less surprises equals less buzz

4. Page 4© 2014 Argus Insights, Inc. Confidential: Do Not Distribute
iPhone 5C was the Worst Launch in Apple’s History

5. Page 5© 2014 Argus Insights, Inc. Confidential: Do Not Distribute
Home Automation is still the Wild West for Consumers
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ConsumerDelight(-1to1)
Smartphone Competitive Landscape
Alcatel Apple Asus BlackBerry Samsung Casio HTC Huawei Kyocera LG
Motorola NEC Nokia Palm Pantech Sanyo Sharp Sony T-Mobile ZTE
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ConsumerDelight(-1to1)
Home Automation Competitive Landscape
Belkin D-Link Dropcam Ecobee Insteon Iris Kwikset Mi Casa Verde Nest Nexia Philips Revolv Schlage SimpliSafe SmartThings

6. Page 6© 2014 Argus Insights, Inc. Confidential: Do Not Distribute
Lessons from Nest, Simplisafe, Dropcam and others
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ConsumerDelight(-1to1)
Home Automation Competitive Landscape
Dropcam Insteon Iris Nest SimpliSafe
Nest Adoption is
dropping since
Google purchase
Lowe’s Iris is
disappointing users
across the board
Mature brand
Insteon challenged
moving from Dealers
to Consumers
Simplisafe
disaggregates
service providers
like ADT to the
delight of
consumers
Dropcam’s ease of use is
pushing out other
security camera vendors

7. Page 7© 2014 Argus Insights, Inc. Confidential: Do Not Distribute
Diversity of Home Automation segment leads to interesting
emerging market opportunities
• Climate Control is the most discussed within the consumer reviews with frustrations with
Nest and other thermostats leading to almost net negative sentiment
• Light Control is one of the most positive viewed uses within Home Automation
• Many of the “home” security solutions are used to support small business under “Doing
Work”
• Monitoring Cats (n=113) exceeds monitoring elderly or aging parents (n=12)
N=20118
% of HA Consumer Reviews Expressing Positive, Negative, or Neutral Views
Yes, Cats!

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What does this mean for telcos? Key Insights from Early Adopters

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WWAD? (What Will Apple Do?)
4/17/2014 4/24/2014 5/1/2014 5/8/2014 5/15/2014 5/22/2014 5/29/2014
Social Mentions of Apple with respect to Home Automation

10. Page 10© 2014 Argus Insights, Inc. Confidential: Do Not Distribute
Points for Discussion
• Where might there be services opportunities?
• How best to craft that trusted relationship with
consumers?
• Build or Partner, best path to building and
ecosystem?