1. Touching, Isn’t It? No, it isn’t!
Consumer Reaction to “advances” in
touch technology across devices
Dr. John Feland, CEO

2. We Analyze the Internet of Humans
COLLECT ANALYZ REPORT
E
TAKE
ACTION
60
50
40
30
20
10
0
Argus Insights
Apple’s Actual Q2 Estimate Based on
iPhone Unit Volume
Morgan Stanley
Consensus
© 2014 Argus Insights, Inc. Confidential: Do Not Distribute Page 2
7000
6000
5000
4000
3000
2000
1000
0
Qtr1 Qtr2 Qtr3 Qtr4 Qtr1 Qtr2 Qtr3 Qtr4 Qtr1 Qtr2
2011 2011 2011 2011 2012 2012 2012 2012 2013 2013
Millions of iPhones; Billions of dollars in Revenue
Buzz Volume for iPhone Models
Argus Insights Beat Wall Street Estimates for
Q2 2013 iPhone Sales
Copyright© 2013 Argus Insights, Inc.
• Mobile Phones
• Home Automation (IoT)
• Consumer Electronics
• Wearables
• Appliances, Large and Small
• Consumer Services
• CPG and more!

3. Does Listening to Consumers Actually Work?
35.00%
30.00%
25.00%
20.00%
15.00%
10.00%
5.00%
US, UK, CA iPhone Consumer Buzz
© 2014 Argus Insights, Inc. Confidential: Do Not Distribute Page 3
25.00%
20.00%
15.00%
10.00%
5.00%
0.00%
Qtr3 Qtr4 Qtr1
2013 2014
Indexed Buzz Volume
Chinese iPhone Consumer Buzz
iPhone 4
iPhone 4S
iPhone 5
iPhone 5C
iPhone 5s
0.00%
Qtr3 Qtr4 Qtr1
2013 2014
iPhone 4
iPhone 4S
iPhone 5
iPhone 5C
iPhone 5S
Apple Guides
Towards Lower
Revenue for Q1
Apple’s Q1
Breaks Sales
Argus Insights Records Globally
knew Q1 was
going to be huge
APPL jumps 14%
within days

4. See the Consumer Demand Shift in Real Time
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Galaxy S3 Launch
Challenges iPhone
Dominance
Galaxy S4 fizzles,
boosts demand for
S3 and iPhone 5
Galaxy S5 final
exceeds prior two
launches and beats
iPhones

5. Case Study: Amazon Fire Phone
July 25
Fire Phone
Launched
July 28
Argus Insights Blog
Predicts Failure
Amazon only sells
35k in first 25 days
Sep 8
Aug 26
Amazon Drops Price
to 99 cents,
GreenPeace strikes
© 2014 Argus Insights, Inc. Confidential: Do Not Distribute Page 5

6. What about Green Peace Take Down?
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1
0.8
0.6
0.4
0.2
0
-0.2
-0.4
-0.6
-0.8
-1
7/10/2014 7/30/2014 8/19/2014 9/8/2014 9/28/2014 10/18/2014
Delight (-1 to 1)
Green Peace Dog Piles
on Amazon Fire Phone
Weeks After Consumers
Already Register Their
Disappointment
Impact of Green Peace
Spam Storm Already
Settling Down
Original Assessment of
Product Launch Failure
Still Valid

7. New Technologies Disrupt People’s Lives
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Copyright © 2009 Argus Insights, Inc.

8. Photo from www.flickr.com/photos/ joaomiguelsilva/
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9. © 2014 Argus Insights, Inc. Confidential: Do Not Distribute Page 9

10. © 2014 Argus Insights, Inc. Confidential: Do Not Distribute Page 10

11. © 2014 Argus Insights, Inc. Confidential: Do Not Distribute Page 11

12. Touch? Gesture? Motion?

13. Overall, Consumer Interest Is Higher Than 2013, Driven By
Smartphones And Wearables
Wearables
Tablets
Smartphone
Laptops - Post Win 8
All In On2ein1 Chromebook
5 6 7 8 9 10 11 12 1 2 3 4 5 6 7 8 9 10
2013 2014
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Consumer Interest by Segment

14. Mindshare for Tablets is Shrinking, as is PC’s
Wearables
Tablets
Smartphone
Laptops - Post Win 8
All In OneChromebook
2in1
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100%
90%
80%
70%
60%
50%
40%
30%
20%
10%
0%
5 6 7 8 9 10 11 12 1 2 3 4 5 6 7 8 9 10
2013 2014
Consumer Interest by Segment

15. Discussion of Touch and Gesture Is Amazingly Stable
5 6 7 8 9 10 11 12 1 2 3 4 5 6 7 8 9
2013 2014
Touchscreen Touchscreen Responsiveness Gesture Recognition
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16. Perception of Gesture Performance is Dropping
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60%
50%
40%
30%
20%
10%
0%
5 6 7 8 9 10 11 12 1 2 3 4 5 6 7 8 9
2013 2014
Net Sentiment (%pos - % neg)
Touchscreen Touchscreen Responsiveness Gesture Recognition

17. 2in1 Laptops, Smartphones, Chromebooks And Wearables All
Gaining Touch Related Mindshare
Wearables
Tablets
Smartphone
Laptops - Post Win 8
Chromebook
2in1
All In One
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100%
90%
80%
70%
60%
50%
40%
30%
20%
10%
0%
5 6 7 8 9 10 11 12 1 2 3 4 5 6 7 8 9
2013 2014

18. Touchscreen Mentions Dropping Across Tablets And Notebooks
5 6 7 8 9 10 11 12 1 2 3 4 5 6 7 8 9
2013 2014
All In One
2in1
Chromebook
Laptops - Post Win 8
Smartphone
Tablets
Wearables
© 2014 Argus Insights, Inc. Confidential: Do Not Distribute Page 18

19. Touchscreen Net Sentiment Dropping in Smartphones and Wearables
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80%
60%
40%
20%
0%
-20%
-40%
-60%
5 6 7 8 9 10 11 12 1 2 3 4 5 6 7 8 9
2013 2014
Net Sentiment (%pos - % neg)
All In One
2in1
Chromebook
Laptops - Post Win 8
Smartphone
Tablets
Wearables

20. Wearables and Smartphones Drive Gesture Discussions
Wearables
Tablets
Smartphone
Laptops - Post Win 8
Chromebook
2in1
All In One
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100%
90%
80%
70%
60%
50%
40%
30%
20%
10%
0%
5 6 7 8 9 10 11 12 1 2 3 4 5 6 7 8 9
2013 2014

21. Tablet Gestures Falling Off Dramatically While Win 8 Remains Flat
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200
180
160
140
120
100
80
60
40
20
0
5 6 7 8 9 10 11 12 1 2 3 4 5 6 7 8 9
2013 2014
All In One
2in1
Chromebook
Laptops - Post Win 8
Smartphone
Tablets
Wearables

22. Perception of Gestures Incredibly Volatile; More Negative than
Touchscreens on Average
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100%
80%
60%
40%
20%
0%
-20%
-40%
-60%
-80%
-100%
5 6 7 8 9 10 11 12 1 2 3 4 5 6 7 8 9
2013 2014
Net Sentiment (%pos - % neg)
All In One
2in1
Chromebook
Laptops - Post Win 8
Smartphone
Tablets
Wearables

23. Touchscreens On 2 In 1’s Frustrate More Than Mainstream Laptops
2in1 Touch/Gesture Related
-5% 0% 5% 10% 15% 20%
Win 8 Laptop Touch/Gesture Related
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Touchscreen
Touchpad
Touchscreen Usability
Touchscreen Quality/Reliability
Gesture Recognition
Disable Touchpad
Touchscreen Functionality
Touchscreen Responsiveness
Touchscreen Touch/Feel
Touchscreen Size/Weight
Neg % Pos % Neut %
-5% 0% 5% 10% 15%
Touchscreen
Touchpad
Touchscreen Usability
Disable Touchpad
Touchscreen Quality/Reliability
Touchscreen Size/Weight
Touchscreen Touch/Feel
Gesture Recognition
Touchscreen Functionality
Touchscreen Responsiveness
Neg % Pos % Neut %

24. Larger Screen Touch on AIO Delights More Than Expected
All In One Touch/Gesture Related
-5% 0% 5% 10% 15% 20% 25%
Chromebook Touch/Gesture Related
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Touchscreen
Touchscreen Usability
Touchscreen Size/Weight
Touchscreen Quality/Reliability
Touchscreen Functionality
Touchscreen Responsiveness
Gesture Recognition
Touchpad
Touchscreen Touch/Feel
Disable Touchpad
Neg % Pos % Neut %
-2% 0% 2% 4% 6% 8% 10%
Touchpad
Touchscreen
Gesture Recognition
Touchscreen Usability
Disable Touchpad
Touchscreen Touch/Feel
Touchscreen Size/Weight
Touchscreen Functionality
Touchscreen Quality/Reliability
Touchscreen Responsiveness
Neg % Pos % Neut %

25. Touchscreen Mentions Begin To Fade In Handheld Devices
Smartphone Touch/Gesture Related
-1% -1% 0% 1% 1% 2% 2% 3%
Tablet Touch/Gesture Related
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Touchscreen
Touchscreen Touch/Feel
Gesture Recognition
Touchscreen Usability
Touchscreen Quality/Reliability
Touchscreen Size/Weight
Touchscreen Responsiveness
Touchscreen Functionality
Neg % Pos % Neut %
-1% -1% 0% 1% 1% 2% 2% 3% 3%
Touchscreen
Gesture Recognition
Touchscreen Usability
Touchscreen Quality/Reliability
Touchscreen Responsiveness
Touchscreen Touch/Feel
Touchpad
Touchscreen Size/Weight
Touchscreen Functionality
Disable Touchpad
Neg % Pos % Neut %

26. The Few Touchscreen Enabled Wearables Disappoint Users
• Most wearables (fitness
monitors, smart
watches) do not have
extensive touch or
gesture integration yet
• Those that do (Galaxy
Gear line, Basis B1, and
others) deliver
disappointing touch
performance
• Significant opportunity
in growing market
Wearables Touch/Gesture Related
0% 0% 0% 0% 1% 1%
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Touchscreen
Gesture Recognition
Touchscreen Usability
Touchscreen Touch/Feel
Touchscreen Quality/Reliability
Touchscreen Functionality
Touchscreen Size/Weight
Touchscreen Responsiveness
Neg % Pos % Neut %

27. Smartphone Touchscreen Perception By Brand
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Samsung
LG
Apple
Motorola
HTC
BlackBerry
Nokia
Sony
Kyocera
Pantech
ZTE
Huawei
Blu
Amazon
Casio
Alcatel
Sharp
OnePlus
Sanyo
Asus
Dell
Lenovo
NEC
Smartphone Touchscreen Perceptions by Brand
Touchscreen Neg % Touchscreen Pos % Touchscreen Neut %

28. Touchscreen Keyboards Continue To Frustrate Users
• “ I unlock the phone even without opening anything the battery goes down one
percent each time And the touch screen keyboard has been AWFUL Sometimes
when I'm typing it won't even type half of the letters the keyboard closes when I
try to fix the words”
• “The battery life of this device is horrid, the touch screen goes out constantly, the
keyboard will freeze up not even appear when trying to type, the phone will
randomly turn itself off when trying to do anything on it thats even slightly
intensive like angry birds”
• “I didn't have the tablet for 24 hours when I was already on the phone with Sony
about the keyboard touchscreen The touchscreen was a NIGHTMARE!! I would hit
one of my apps it would open close other apps at its own discretion The keyboard
was doing the same thing When I talked to Sony they told me to factory reset it I
did less than 24 hour later the same issue arose Another phone call another reset”
• “I've come to REALLY dislike this phone The touch screen us unresponsive a lot of
times To press a button on the screen sometimes I need to press it multiple times
for it to register that can be mildly annoying I can deal with it The keyboard is the
worst part When I'm texting, a lot of times my messages turn out like this:
Hhheelllo tthhiss iss a ttexxt mmessageeee...”
• “I will take great pleasure in spending my money to purchase a phone I like then
taking a hammer, shoe, foot, etc to this phone TERRIBLE PHONE the swipe
keyboard on this phone is the worst keyboard Android stands behind I have had
many Android phones none of the swipe keyboards worked so pathetically.”
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29. Swipe Gestures, Both In Air And On Screen Frustrate
• “I wish I could figure out how to use the motion / gesture function I
followed all of the instructions, even see the 'eye' on the top bar,
indicating it is working But when I swipe the phone, nothing happens.”
• “The swipe up shortcut menu for wifi Bluetooth is insanely hard to pull
up I have to swipe upwards on the phone 5 or 6 times before I can get
the menu to display I am honestly disappointed with this phone”
• “ As for answering calls, the screen says to swipe from the outside
and well I seem to end up always having to return calls Plan on stopping
by store to check out what I'm suppose to do.”
• “ And when the coverage isn't very good, it does weird things For
example, when I try to swipe right for an incoming call, the phone just
keeps ringing won't let me answer Ultimately I end up having to
completely reboot the device to get it to stop”
• “The low point came when I was showing off my new phone at work to
extol the virtues of my new Amazon Fire Flick fail Swipe fail Firefly fail I
could at least show the dynamic perspective with my lock screen, they
gazed politely They tried the swipes flicks, sometimes they worked Overall
though, I think I solidified their loyalty to their current iPhone or Android I
had my Fire Phone two more demoralizing days”
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30. Touch Responsiveness Across Multiple Builds And Consumer
Environments Continues To Be An Issue
• “ The biggest issue that keeps coming up on my phone is how unresponsive the
touchscreen gets I have tried turning it off on multiple times with no luck I have
also tried re-calibrating it again again This is a very big issue for a $500 phone The
unresponsiveness of the touchscreen makes it so that basic things like
calling texting/typing UNBEARABLE”
• “The phone loses data connection constantly I have to shut off the phone always
be vigilant in watching to see if the phone has lost connection The touch screen
has terrible responsiveness freezes quite a bit The problem I have is that every
time I call sprint to complain they say it is a phone issue I take the phone to a
dealer they say to do a master reset I am sick of rearranging my phone apps
because Sprint can't get their act together...”
• “It works pretty well With the touch screen, I find that I have to touch the screen
several times on many occasions to get a response Also, it would be nice to have
it in a case as it is a little small for me to hold in my hand for any lengths of time.”
• “My family I enjoyed this product initially after three weeks the touch screen
became increasingly unresponsive Amazon's site says that if the screen doesn't
respond, try turning the device off It got to the point where we couldn't even
unlock our Kindle when we turned it back on because the screen couldn't detect
our touch One month after our purchase, we stopped trying to use it because it
never functioned properly”
• “The touch screen was unresponsive in the upper left corner Windows 8 Is a total
disaster I will not buy another windows computer unless it is xp.”
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31. From the mouths of babes, and their parents: Next Steps for Touch
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32. Please contact us if you’d like to know more!
http://www.argusinsights.com Twitter: @argusinsights
1-877-992-7487 sales@argusinsights.com