Connected(Home(or(Ho(Hum?( - Argus Insightsin(FirstHalf(of(2015(and(Con6nues(Rapid(DropOﬀ (Really)...

Connected Home or Ho Hum?

June 2015

Consumer Demand for Connected Home Products Slows Drama6cally in First Half of 2015 and Con6nues Rapid Drop Off

(Really) Brief Intro to Argus Insights

23-‐Feb-‐13 23-‐Mar-‐13 23-‐Apr-‐13 23-‐May-‐13 23-‐Jun-‐13 23-‐Jul-‐13 23-‐Aug-‐13 23-‐Sep-‐13 23-‐Oct-‐13 23-‐Nov-‐13

Actual Sales/Returns for Specific Handset Predicted Sales Using Argus Metrics from 8 weeks prior

Eight Weeks Predic6ng Adjusted R2 = 87.8% p-‐value = 4.547E-‐22

Hand

set U

nit

Sales/Re

turns

COLLECT REPORT ANALYZE TAKE ACTION

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A Brief History of Argus Insights

Nokia, Blackberry, Motorola fail to compete with Apple

Best Buy first major customer

Consumer Innova6on Analy6cs SaaS pla^orm launched

Social media integra6on

Profitable and Cash Flow posi6ve

Pla^orm segment agnos6c. Expansion into B2B, B2B2C, B2C

Processing over 1 million social men6ons a day

2008 2009 2010 2011 2012 2013 2014

Argus Insights founded by dr. John Feland

SDN / NFV B2B Solu6on

2015

Launch of Tools 2.0


Key Takeaways

•  Though the connected home market saw growth throughout 2014, it is now shrinking –  Product segments suffer from long reported flaws in connec6vity and

installa6on, and lack the innova6on to intrigue new customers •  Early adopters have goeen what they need, and now products

are not compelling typical consumers to create a connected home

•  IDC reported that “Technology firms including Google Inc, Intel Corp, Cisco Systems, Samsung Electronics and telecoms majors including Vodafone and Verizon are being heavily on Internet device-‐connected homes for future revenue and profit” –  Acquisi6ons by Google and Samsung have done liele to spark

consumer interest


Consumer Demand for Connected Home products has slowed drama6cally in the first half of 2015

-‐40%

-‐20%

0%

20%

40%

60%

80%

100%

120%

140%

160%

May Jun Jul Aug Sep Oct Nov Dec Jan Feb Mar Apr May

2015 Year Over Y

ear C

hange in Con

sumer Dem

and for

Conn

ected Ho

me

Robust demand growth during 2014 for all Connected Home segments

Connected Home demand is now 15% less than it was in May 2014

Change in Connected Home Demand: May 2014-‐May 2015


Connected home growth was led by Security Cameras, but interest in cameras and all other segments is waning

Post holiday demand slumped across Home Automa6on segments, rever6ng market growth


Though users are repor6ng improving sa6sfac6on, consumers are losing interest in major Security Camera brands

Despite a rise in delight the most popular Security Camera

brands are seeing consumer interest shrink (O

ut o

f 100

%)


Security Camera users report major issues with speed, performance and connec6vity. The persistence of these problems is affec6ng further consumer adop6on

Color corresponds to sen6ment Red= nega6ve, Green=posi6ve, Gray=neutral


Clout of Samsung and Google names did liele to increase consumer awareness, as all three acquired companies saw rela6vely steady volumes of consumer feedback post acquisi6on

As shown by the size of the bubbles, consumer aeen6on is falling off with

delight

Acquired by Samsung

Acquired by Google

Acquired by Google


Social conversa6on about the Internet of Things is led by discussion of Wearables, while there is liele talk or excitement surrounding developments in Home Automa6on

Home Automa6on is rarely men6oned within IoT Social Men6ons

Connected(Home(or(Ho(Hum?( - Argus Insightsin(FirstHalf(of(2015(and(Con6nues(Rapid(DropOﬀ (Really)...

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