It’s Anyone’s Game in the Consumer Electronics Playing Field

The 2013 Accenture Consumer Electronics Products and Services Usage Report
Enter w

Table of Contents
Introduction 1. A Focus on Multi-Function Devices 2. Not Stuck on Any Single Platform 3. Cloud Services and Apps on the Rise 4. Mobile Devices Unstoppable in the Workforce The Way Forward: The “Superstack” Imperative Final Thoughts Appendix: Additional Charts of Interest 3 7 13 16 19 20 21 22

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With strong compound annual growth, the global consumer electronics industry remains bullish. While younger consumers have, for years, been eager to purchase new technologies, older age groups are showing optimistic purchase plans for 2013 as well.
And emerging markets continue to strengthen their importance as consumers in these markets remain active buyers with strong purchase intentions for 2013. But underlying this growth is a competitive environment best characterized as an open playing field. Consumers are homing in on a small set of multi-function devices, yet they continue to experiment. Platform loyalty means little in their search for the apps and services that best meet their needs, whether in the home or on the go. For six consecutive years, Accenture’s Electronics & High Tech industry practice has conducted research to identify and track consumer technology trends. This year’s study, conducted in September and October of 2012, included a quantitative online survey of more than 11,000 consumers across 11 countries (Figure 1). This annual Accenture research is intended to help consumer technology executives better understand the purchase patterns and use of consumer technologies, gain deeper insights into global differences and understand the implications for future business performance.

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Figure 1: Survey Demographics

Gender

Male

50%

50%

Female

Age
>55 Years 26%

15%

18-24 Years

21%

25-34 Years

18% 45-54 Years 20% 35-44 Years

Country

UK (New in 2012) 9% South Africa 9% 9% 9%

US

Brazil

Sweden

9%

9%

Russia

France Germany

9% 9% 9% 9%

9%

India

China

Japan
Source: The 2013 Accenture Consumer Electronics Products and Services Usage Report

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The open playing field represented by this year’s consumer electronics purchase and use data is underscored by four specific trends:

1 2

Consumers are focusing on fewer, multiplefunction devices. Purchase intentions for singlefunction devices are flattening or declining as smartphones, tablets, PCs and high-definition televisions climb at double-digit rates. Smartphones and tablets are accelerating the demise of most single-function devices as consumers shift activities such as reading and watching movies from eBook readers and DVD players to their multi-use devices. Consumers are not locked into any single platform. Consumers know about the operating system of their devices and they appreciate the concept of using a single platform across devices. But the research does not suggest loyalty to a specific operating system. Consumers are open to experimenting; virtually no company or platform has a lock on their loyalty.

3 4

As consumers experiment and search for the technologies and services that best meet their needs, cloud-based services and apps are showing substantial increase in use. While a greater percentage of young consumers use online services than do older ones, a significant increase in use is occurring among both generations. Among apps, financial apps (such as mobile payments, banking and trading) and shopping apps are leading the growth in consumer usage. The increasing capabilities and rapid adoption of mobile multi-function devices are fueling the continued “consumerization” of IT in the workplace. As consumers increasingly do multiple activities on their mobile devices, they are also choosing to use these devices for work purposes and finding productivity improvements in doing so.

The advent of smartphones, tablets and other mobile technologies has created a barrage of consumer activity and device adoption, providing consumer electronics and related companies with ample opportunity to innovate in device form factor, apps and online services. On the following pages, we explore Accenture’s research findings in more detail and discuss the implications they have for companies as they navigate this open market and work to win the hearts and wallets of consumers.

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1. A Focus on Multi-Function Devices
While the total number of product categories per household remains stable, many consumers are narrowing their technology interest to those devices that serve multiple functions. Purchase plans for 2013 are much more strongly focused on four product categories than in the previous years: smartphones, tablets, PCs and high-definition televisions (HDTVs). In fact, there’s a greater separation in purchase intent between these “Big 4” and other devices than Accenture’s research has ever shown (Figure 2). The focus on multi-function devices also reveals itself in ownership trends. From 2011 to 2012 ownership of tablets among those we surveyed doubled. Ownership of digital cameras, DVD players, DVRs, portable music devices, portable game devices, and health and fitness devices remained flat or declined. When taking a longer view of trends from our research from 2009 to 2012, ownership of devices like smartphones, tablets and HDTVs grew strongly as expected (Figure 3). Devices with decreasing ownership are single-use products, including portable music players, DVD players and digital photo cameras, with functionality that is increasingly being integrated into multi-function devices. The contrast between ownership trends in multi-function and single-function devices is in some cases staggering. For example, smartphone ownership increased from 26 percent in 2009 to 58 percent in 2012 while ownership of digital photo cameras decreased from 77 percent in 2009 to 68 percent in 2012. Figure 2: Purchase Intentions Which of these consumer electronics do you plan to purchase in the next 12 months? Multiple response. 2012 (Planning to purchase in 2013)

50%

41% 36%
PC* Smartphone

33%

23%
Tablet

HDTV**

Digital photo camera Blu-ray DVD player Health and fitness device Digital video camera Game console

11% 10% 9% 8% 7%

11% 10% 9%

GPS device Basic mobile phone eBook reader

7% 6%

Digital home music system Portable music player

Portable gaming device DVR
* “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

4% 3%

4% 3%

Regular TV - CRT or tube DVD player - not Blu-ray

0%

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Figure 3: Ownership Trends

Which of the following consumer electronics do you currently own? Multiple response.

Smartphone

26% 28%

2009
48% 58%

2010 2011

Tablet

8%

14%

25% 45% 51%

2012

HDTV*
7%

58% 62%

Blu-Ray DVD player

14% 18%

24% 30% 31% 34%

22%

GPS device
6% 7% 8%

eBook reader

14% 91% 92% 90% 94% Increasing Ownership (above) Decreasing Ownership (below)

PC**

Digital video camera

29% 26% 24% 26% 44% 39% 40% 40% 27% 27%

Portable music player

Health and fitness device
21% 20% 20% 20%

DVR
13%

Digital photo camera

77% 75% 73% 68% 55% 63%

Regular TV-CRT or tube

43% 47%

Basic mobile phone

58%

75% 64% 64% 72%

84%

DVD player - not Blu-Ray
44%

54%

* “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 Report

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This data implies that over time massmarket single-function devices will be increasingly at risk. Exploring this trend we asked respondents about how their usage of other devices changes upon purchasing a tablet. In other words, what don’t they use once they have the tablet? The largest drop in usage of other devices among tablet owners occurs in single-function devices (Figure 4). About 40 percent of tablet owners use eBook readers and DVD players less often. In contrast, multifunction devices aren’t showing this decline. Only 24 percent of consumers use their smartphone less as a result of owning a tablet; an equal share increases use of their smartphone. In our comparable year-over-year sample of six countries, device usage is also concentrating on multi-function products (Figure 5). The PC remains the most-used device, but smartphones and HDTVs tie for second, with 55 percent of respondents ranking them among the five most-used devices. While some consumers may not consider the TV to be a multi-function device, those with an HDTV are increasingly using it that way. More than two-thirds of HDTV owners with Internet access have used their TV for Internet browsing, and more than one-third do it regularly (Figure 6). Figure 5: Most Frequently Used Devices

Figure 4: Use of Other Devices After Owning a Tablet Do you use your other devices more or less after purchasing your tablet?
Use more Use the same 11% 49% 37% 47% 44% Use less

20%

19%

23%

13% 55%

25%

51%

43%

40% 34% 33% 32% 24%

eBook Reader Base: 900

DVD Player Base: 1,800

DVR Base: 744

PC (desktop laptop - netbook ultrabook) Base: 2,584

TV Base: 2,570

Smartphone Base: 2,290

Sample base: Device owners Source: The 2013 Accenture Consumer Electronics Products and Services Usage Report

Of 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 HDTV Smartphone Tablet eBook reader Game console GPS Blu-Ray DVD player Basic mobile Digital photo camera Regular TV Portable music player DVD player Health and fitness device Digital video camera Portable gaming device DVR

91% +2 55% +8 55% +30 17% +14 6% +5 13% +4 12% +1 9% +4 50% -17 36% -15 33% -8 17% -4 15% -15 7% -2 5% -2 5% -3 5% -5 Significant level or growth in usage

Increase between 2010 and 2012 Decrease between 2010 and 2012
Sample base: Total sample (US, Japan, Germany, France, China and India) 2010: 6,001 2012: 6,057 Source: The 2011 and 2013 Accenture Consumer Electronics Products and Services Usage Reports

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Figure 6: How HDTV Is Used Please 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

21% 25% 30%

Have never tried it
Sample base: 3,430 (Owners of HDTV with Internet connectivity) Source: The 2013 Accenture Consumer Electronics Products and Services Usage Report

19% 15%

13%

49% 14% 15% 40% 31%

31%

General web browsing

View personal content such as photos

Access apps

Access streaming services like Netflix and Spotify

Regarding activities that consumers spend time doing each week, some activities—particularly those that are well established among consumers, like emailing and texting—are predominantly conducted on a single device. However, many activities are now done on multiple devices, demonstrating consumers’ comfort with using the device that is most handy at the time. For example, while a majority

of consumers use maps, listen to stored music and download new apps on their PCs, about half also do so on their mobile or smartphones (Figure 7). When it comes to watching shows and movies on demand, the use of the PC and TV are nearly tied: 53 percent use their PC while 56 percent use TV. This flexibility to use any device is so important that half of consumers would consider paying extra to watch TV shows or movies on their computer.

Furthermore, activities conducted on mobile devices that were once considered “emerging” are becoming more mainstream (Figure 8). Almost half of consumers already do or plan to make payments in stores using a mobile phone or tablet and about one-third do or plan to control home audio/video and home security with their mobile device.

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Figure 7: Device Usage What device do you use for your activities? Multiple response. Device usage on the top 10 most popular activities.
Emailing 14% 2% Searching for/reading general news and information on the Internet 88% 35% 14% 14% 28% Texting - SMS - MMS 7% 2% Online banking and finance management (checking account, making transfers, paying bills) 93% 21% 11% 3% 20% 6% 5% 85% 93% 16% 13% 3% 69% Using maps and global positioning; getting directions 4% 68% Listening to music stored on my device 52% 14% 9% 81% Playing games 11% 83% Connecting with people/playing games on social networking sites 17% 5% 62% 58% 39% 40% 18% 48% 13% 87% 92% 38% PC (Desktop - laptop netbook - ultrabook) Mobile phone smartphone Tablet computer TV

Watching broadcast TV or cable shows (at the time they are broadcast)

Online shopping - eCommerce

Downloading and using new apps 4%

25%

53% Watching shows - movies videos on demand 11% 13% 56%

Sample base: Respondents conducting the activity Source: The 2013 Accenture Consumer Electronics Products and Services Usage Report

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Figure 8: Activities Conducted on Mobile Devices Do you do any of the following over your mobile device (phone or tablet)?
45% 24% 35% 13% 34% 12% 29% 8% 30% 10% Yes No, but planning to

21%

22%

22%

21%

20%

Make payments in stores

Control home audio/video systems

Monitor control home locking systems

Monitor control heating/ air-conditioning systems

Transfer health data (test results) to a remote location

Sample base: Respondents owning a smartphone or a tablet (7,080) Source: The 2013 Accenture Consumer Electronics Products and Services Usage Report

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2. Not Stuck on Any Single Platform
Most consumers are aware of the name of the operating system (OS) they have on their devices, especially on their smartphones (Figure 9). It is also clear that to most consumers, operating system is an important feature. When buying a new device, consumers prioritize price, device features such as screen size and resolution, and now, more frequently, security. However, operating system is also among the top five selection criteria for PCs and tablets. While touch screen and look and feel rank higher in importance than operating system for smartphones, OS is within the top seven selection criteria for these devices as well. (See Appendix Figure D.) Yet, our data shows that platform users are not as loyal as the “platform war” stories in the media indicate. While the majority are aware of the OS they have on devices, less than half of consumers think it’s very important to stay within one operating system for their devices (Figure 10). To investigate this trend further, we analyzed the responses of a segment of respondents 100% we labeled “strong users” of a single 93% platform, defined as those owning at least two devices that use the same operating system (see page 14: “Strong User Methodology”). Among the strong users of a single platform, only half think it’s very important to stay within one operating system for their devices. In fact, about one-fifth of this group actually seems to be strong users by coincidence: They say they don’t have a preferred OS or don’t care what operating system they have. Furthermore, strong users offer more reasons than the overall consumer sample as to why they would buy devices on other platforms (Figure 11). About one-third of strong users indicate they would switch to 98% 98% another OS to see what else is out there in 95% the 89% market, to find a better user experience or to get access to more innovative services and applications. Continued curiosity and the drive for innovative services and user experiences appear to be more compelling than loyalty to any particular platform in the market today—creating more opportunity for market players.

Figure 9: Consumer Awareness of Operating Systems Percentage of consumers surveyed that know the operating system of their devices:

100% 93% 89%

95%

98%

98%

Smartphone Tablet Ultrabook
Sample base: Device owners (10,818)

Netbook Laptop computer Desktop computer

Source: The 2013 Accenture Consumer Electronics Products and Services Usage Report

Smartphone Tablet Ultrabook

Netbook Laptop computer Desktop computer

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Figure 10: Importance of Staying Within One Operating System How 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” Methodology
To investigate the extent to which consumers have settled for a single operating system for their devices, and how the views of consumers who have done that differ from the rest, we created a segment of respondents we labeled “strong users” of a single platform. The following question was used to identify strong users of a specific operating system: Which operating system(s) do you have on the following devices (smartphone, tablet, ultrabook, netbook, laptop, desktop)? “Strong users” are defined as consumers owning: • At least two devices with the same operating system, either iOS (Apple), Android (Google-owned, used on multiple device brands) or Windows (Microsoft-owned, used on multiple device brands) • No more than one device using another operating system 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.

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Figure 11: Reasons for Switching to Another Operating System Complete the sentence with all that apply in the list: “Most of my mobile and computing devices use the same operating system. When buying a new device I might consider getting one with a different operating system because...”

Total sample

Strong users 24% 31% 23% 31% 23% 32% 16% 21% 15% 19% 14% 18% 6% 10% 66% 79%

I want to see what else is out there on the market

I think I could have a better user experience with another operating system I think I could get access to more innovative services and applications I think another operating system would mean less hassle

I believe I could get a lower cost if I switched

I think switching would bring me to a higher security level I think I could get a better synch with my in-car solution

I don't have a dominant or preferred operating system I don't know or care what operating system I have on my devices

20% 15% 14% 6%

Sample base: Total sample (11,101) Strong users (1,388) Source: The 2013 Accenture Consumer Electronics Products and Services Usage Report

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3. Cloud Services and Apps on the Rise
Our platform data shows that consumers are open to experimenting in search of the most satisfying devices and experiences. This search extends to the cloud. After all, if the typical consumer is not staying within one platform for all devices, then using cloud-based services that are accessible from all platforms is quite logical. A significant increase in use of online services has occurred in just one year (Figure 12). Usage increased—in many cases substantially—for all eight of the online services we queried: online mailbox services, games, photo storage, movie streaming, data backup, music streaming, calendaring and document creation. While a greater percentage of young consumers use online services than do older ones, a significant increase in the use of cloudbased services is occurring among both generations. Consumer use of technology is becoming more pervasive, driven by adoption of more capable multi-function devices, a growing technology maturity, and new cloud services and apps. In 11 of 15 activities queried, the percentage of consumers we surveyed doing the activity in a typical week increased from 2010 to 2012, sometimes substantially. Reading electronic books gained seven points, searching for information on the Internet gained 19 points and texting gained nine points. The percentage of consumers tweeting or micro-blogging in a typical week has doubled in two years, fueled largely by growth of micro-blogging in emerging markets. More than half of Chinese consumers we surveyed reported they micro-blog in a typical week. Among the activities consumers are doing each week, they are more and more often downloading new apps (Figure 13). The percentage of consumers we surveyed downloading apps in a typical week has increased eight points from 2010 to 2012. Among apps, usage of financial apps (such as mobile payments, banking and trading) and shopping apps are leading the way. As an activity, using maps, global positioning and getting directions showed dramatic growth, gaining 20 points since 2010 (see below: “Global Positioning: Evolving From Device to Differentiating App”). As the industry considers how to engage more fully in cloud services and apps, the interests of the strong users from our survey may provide helpful guidance, as these users demonstrate a curiosity and openness to innovation and experimentation. Sixty percent of strong users we surveyed already do or plan to make payments in stores from their mobile devices. Half of those strong users do or plan to control home locking systems and home audio/video systems from their mobile device. More than 40 percent do or plan to transfer health data to a remote location, such as test results from their mobile device, and the same amount do or plan to control heating and air-conditioning systems from their mobile device.

Global Positioning: Evolving From Device to Differentiating App
Since its introduction as a consumer device just over two decades ago, the Global Positioning System (GPS) has progressed through its life cycle from being a highly popular stand-alone device to slowly being replaced by map apps on a multitude of other consumer devices. GPS device ownership continues to grow slowly (34 percent own GPS devices now compared with 32 percent in 2011), but growth is certainly not at the rate of newer mobile technologies or even stationary devices such as Blu-Ray DVD players. By all indications, purchase rates for new GPS devices are slowing. Only seven percent of consumers purchased a GPS in the past 12 months compared with 10 percent the prior year. Across the sample of six countries that have been surveyed for multiple years, eight percent plan to purchase a GPS device in 2013 compared to 10 percent who planned to purchase one in 2009. Despite the cautious outlook for GPS devices, the activities of using web-based maps and global positioning and getting directions are showing dramatic growth, gaining 20 points since 2010. Together they show the greatest relative growth in participation of all the technology-based activities Accenture queried. Today, almost half (47 percent) of consumers we surveyed use global positioning in a typical week. To do so, 69 percent use a PC, 48 percent use a mobile or smartphone, and 13 percent use a tablet; 35 percent have a factory-installed GPS device in their car and 43 percent would like to have a GPS device installed in their next car. So while the GPS device is highly popular, its preferred form is now in a software app on a multi-function device.

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Figure 12: Use of Online Services Which of the following online services do you use? Multiple response.

Online mailbox service

77% 75% 41% 37% 37% 26% 35% 26% 30% 18% 29% 24%

Online games

Online photos - video storage

Movies - shows streaming

Online data backup - storage

Music streaming

Online calendar

27% 16% 27% 17% 2012 2011

Online document creation (e.g., Google Docs)

None 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 Report

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Figure 13: Activities Done in a Typical Week Please indicate which of the following activities you do in a typical week. Multiple response.
Searching for/reading general news and information on the Internet Emailing Online banking and finance management (checking account, making transfers, paying bills) Texting - SMS - MMS Watching broadcast TV or cable shows (at the time they are broadcast) Listening to music stored on my device Using maps and global positioning; getting directions Playing games Connecting with people/playing games on social networking sites Downloading and using new apps Managing personal digital photos and videos Listening to streaming music Reading electronic books Tweeting - micro-blogging Managing your health or that of family members 58% 51% 58% 49% 53% 44% 48% 39% 47% 27% 42% 40% 40% 39% 37% 29% 36% 35% 35% 29% 25% 18% 23% 11% 15% 26% 80% 61% 78% 82% 2012 2010

Sample base: Total sample, excluding UK, South Africa and Sweden which were not in the 2010 sample 2010: 8,002 2012: 8,058 Source: The 2011 and 2013 Accenture Consumer Electronics Products and Services Usage Reports

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4. Mobile Devices Unstoppable in the Workforce
The increasing capabilities and rapid adoption of mobile multi–function devices are fueling continued 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 productivity improvements in doing so.
Consider, for example, how consumers use their smartphone for work purposes: Of those we surveyed, 82 percent text and 66 percent email. But nearly one-third also use their smartphone for work-based social networking on sites such as LinkedIn and for using collaboration tools. Fourteen percent even do video conference calls by smartphone. The trends are similar in how consumers use their tablets for work purposes. Using their tablets, 64 percent email for work, 39 percent use workbased social networks, 33 percent use collaboration tools, 25 percent conduct video conferences and 23 percent conduct voice conferences. The majority of respondents believe using their consumer devices for these various work purposes improves their productivity. Nearly 60 percent say it improves their productivity to take conference calls and use collaboration tools from their personal devices. Perhaps not surprising, generational preferences are clear in how consumers communicate using technology. Consumers we surveyed across generations use email to communicate for work purposes. Yet a smaller percentage of 18-24-year-olds (73 percent) use email in a typical week than their slightly older peers. Instead, to communicate digitally, 18-24-yearolds are doing significantly more texting, connecting with people over social media networks and tweeting on their device than older generations. Usage of the social networking sites (public and corporate) and collaboration and conferencing tools for work purposes is higher among younger consumers surveyed, who also rank the productivity improvement from using social networking sites higher. This finding aligns closely to a recent Cisco study that reveals how the need for Gen Y to stay connected drives every facet of this generation’s lives.1 Ninety percent of Gen Y surveyed worldwide said they check their smartphones for updates in email, texts and social media sites as part of their morning ritual for getting ready for school or work, often before they get out of bed. They connect to live, checking for work updates and communicating at all hours from every place imaginable. For this age group, the lines between work and personal life are forever blurred.

1. Cisco press release, 12 December, 2012: “Toothpaste, Toilet Paper, and Texting – Say Good Morning to Gen Y,” http://newsroom.cisco.com/ release/1114955

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The Way Forward: The “Superstack” Imperative
The trends identified in this year’s research confirm that the growth in purchase and use of smart, multi-functional devices has brought the platform (or operating system) into the consumer spotlight like never before. Yet, as much as consumers clearly appreciate the seamless user experience across devices and the easy installation and deployment that come with consistent use of a single platform, they don’t seem interested in getting locked into one solution when there is so much development going on in the market.
As consumer technology companies continue to chart their course, they must have a clear niche for the single-function devices they offer. Single-function devices will continue to have a place as the source of new innovations. For example, the purchase intent for health and fitness monitoring devices rose significantly—and many of these need specific sensors that may keep them stand-alone for a while. Over time, however, we are likely to see the rapid integration of many new capabilities into multi-function devices. At the same time, different form factors for multifunction devices will emerge as technology companies innovate in hopes of identifying the combination of form and function that consumers desire. Executives across the consumer technology industry are looking at whom they compete and cooperate with in a new and more holistic way. We’ve seen Intel absorb McAfee to integrate security solutions2 and Nokia acquire earthmine inc. to improve its 3D map-making capabilities,3 just to name a couple of examples. In a world driven by mobile, cloud and consumerization, companies must envision their future development more strategically, across all layers, and effectively and tightly integrate a vertical “superstack” of chipsets, devices, operating systems, applications and services either on their own or through acquisitions and innovative alliances. Our research indicates the time is right to focus on apps and cloud services in a more extensive way and in the context of achieving the superstack that consumers value. With Internet-connected apps embedded in home and personal devices from televisions to thermostats, the apps and services consumers value may be as important—and drive more purchase decisions—than the device. This may mean that to stay relevant, device makers need to work across their ecosystems to combine the best features of the platform (seamless experience and content transfer) with cloud-based, platform-agnostic services and functionality to provide consumers with the flexibility they 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/nokiacompletes-acquisition-of-earthmine-inc

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Final Thoughts
Across geographies and market segments, demand for consumer technologies remains high. In the shifting landscape of increasingly multi-function devices, and compelled by consumer willingness to experiment, industry players have tremendous opportunity to change the game to win. Innovating on the superstack to deliver compelling new form factors, apps and cloud services that further embed the use of technology into consumers’ lives will be critical. The nature of the applications will expand from entertainment and communications to financial services, home management and productivity. To compete in this playing field, many consumer technology players will need to fundamentally restructure their approach to R&D to focus on the creation of the superstack, with emphasis on the ability to do the needed software development for the apps and services. For many, it will also mean more flexible operations to support rapid response to shifting market demand and the production and distribution of more varied and differentiated devices. Finally, customer-centricity is paramount in designing compelling user experiences and establishing the right ecosystem to deliver them. The combination of intense desire for innovation and willingness to experiment with platforms and brands opens up tremendous opportunities for consumer electronics companies to win the hearts and wallets of consumers. Future winners will be those companies that identify and create cohesive consumer technology superstacks through innovation and integration of computing form factor, cloud services and highly versatile apps.

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Appendix: Additional Charts of Interest

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DVD player - not BluDVR

Figure A: Purchases in Last 12 Months Which of these consumer electronics have you purchased in the last 12 months? Multiple response.

Smartphone
26% 25% 19% 21% 14% 16% 12% 7% 11% 18% 7% 10% 6% 7% 6% 4% 6% 7% 5% 5% 5% 7% 4% 4% 4% 5% 4% 4% 4% 6% 2% 4%

32% 34%

2012 2011

PC* HDTV** Basic mobile phone

Tablet Digital photo camera

GPS device Portable music player eBook reader Game console Blu-Ray DVD player Health and fitness device Regular TV - CRT or tube Digital video camera Portable gaming device DVD player - not Blu-Ray DVR

* “PC” combines laptop, desktop, ultrabook and netbook. ** “HDTV” combines HDTV and 3DTV.

2012 Sample base: Total sample, excluding UK, for full comparison
2012:2011 10,099 2011: 10,021 Source: The 2012 and 2013 Accenture Consumer Electronics Products and Services Usage Reports

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Figure B: Purchase Intentions in Mature and Emerging Markets Which of these consumer electronics do you plan to purchase in the next 12 months? Multiple response.

Smartphone
29%

33% 50% 43% 20% 46% 16% 31% 8% 15% 6% 16% 10% 10% 7% 13% 7% 13% 5% 14% 3% 12% 6% 9% 3% 11% 4% 8% 3% 6% 4% 4% 2% 5% 2% 4%

PC* HDTV** Tablet Digital photo camera GPS device Basic mobile phone Blu-Ray DVD player eBook reader Health and fitness device Digital video camera Game console Digital home music system Portable music player Portable gaming device Regular TV - CRT or tube DVR DVD player - not Blu-Ray

Mature markets: Germany, France, Japan, Sweden and US 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

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Figure C: Average Spending (Last 12 Months and Planned) In the past 12 months approximately how much have you spent on consumer electronics? And how much do you plan to spend in the next 12 months?

China
$1,080

$1,251 $1,489

Average spent in the past 12 months (USD) Purchase plans in the next 12 months (USD)

Brazil Russia Japan

$1,323 $1,046 $1,225 $1,031 $1,068 $1,012 $1,289 $940 $1,164 $927 $1,082 $904 $957 $869 $1,010 $848

India South Africa Germany

France Sweden US

$970 $847

UK

$960

Sample base: Total sample (11,101) Source: The 2013 Accenture Consumer Electronics Products and Services Usage Report

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Figure D: Importance of Features to Purchase Decision How important are the following features when determining what products to purchase in the below categories? Extremely important/important features
PC Price Security solution against hackers, identity theft, etc. Screen resolution Size of screen Operating system (e.g., iOS, Android, Windows) Easy (”Plug and play”-type) setup to connect with my other devices Newest technology to reduce power consumption (e.g., OLED) Device size Product brand Design/look and feel Ability to use favorite social networking application Range of available applications (apps) for download Ability to use your preferred payment solutions (e.g., PayPal) Shareable photo solution Ability to use your preferred streaming music service Ability to synchronize content with your in-car system Shareable video solution Touchscreen Voice recognition technology 3D screen
75% 71% 67% 64% 63% 55% 53% 53% 48% 47% 46% 42% 41% 35% 31% 30% 28% 27% 21% 19% 23% 19%

Tablet
69% 66% 63% 59% 57% 53% 52% 55% 46% 51% 45% 49% 37% 34% 30% 34% 28% 54%

TV
73% 41% 72% 72% 28% 50% 58% 60% 50% 54% 19% 22% 25% 19% 23% 21% 23% 17% 18% 29%

Smartphone
68% 65% 61% 58% 54% 50% 49% 56% 50% 57% 43% 49% 34% 37% 31% 36% 27% 54% 28% 17%

Sample base: Total sample (11,101) Source: The 2013 Accenture Consumer Electronics Products and Services Usage Report

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Figure E: Apps in Use Are 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 use

Information (e.g., news, weather, sports)

3%

24%

8%

65%

Navigation (e.g., maps, guides)

4%

28%

15%

53%

Entertainment (e.g., music, single or group games, videos)

4%

34%

11%

51%

Financials (e.g., mobile payments, banking, trading) Networking (e.g., social/professional networks)

4%

33%

13%

50%

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, traffic updates) Personal organization (e.g., weekly planning, household bookkeeping, budget calculator) Leisure activities (e.g., event dates, cooking, booking restaurants) Education (e.g., language learning programs, reference works) Fitness and health (e.g., health records, training planning, nutrition guide)

5%

38%

20%

36%

6%

45%

16%

33%

5%

49%

16%

30%

6%

50%

18%

26%

6%

53%

19%

23%

Sample base: Total sample, excluding UK, for full comparison (10,099) Source: The 2013 Accenture Consumer Electronics Products and Services Usage Report

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Accenture is a global management consulting, technology services and outsourcing company, with approximately 259,000 people serving clients in more than 120 countries. Combining unparalleled experience, comprehensive capabilities across all industries and business functions, and extensive research on the world’s most successful companies, Accenture collaborates with clients to help them become high-performance businesses and governments. The company generated net revenues of US$27.9 billion for the fiscal year ended Aug. 31, 2012. Its home page is www.accenture.com.

Copyright © 2013 Accenture All rights reserved. Accenture, its logo, and High Performance Delivered are trademarks of Accenture.

This document is produced by consultants at Accenture as general guidance. It is not intended to provide specific advice on your circumstances. If you require advice or further details on any matters referred to, please contact your Accenture representative.

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