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
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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
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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
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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
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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
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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
%)
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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
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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
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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
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