Parks: Connected Device Purchases Tapering Off

June 27, 2017
According to Parks Associates, purchase rates for Internet-connected consumer electronics (CE) devices are stable for now, but indicate a slow ...

According to Parks Associates, purchase rates for Internet-connected consumer electronics (CE) devices are stable for now, but indicate a slow decline since 2008 that is expected to continue. The research house says that while consumer intentions in 2017 mirror the levels of the previous two years, the long-term trend shows lower percentages of households buying connected CE than in the past, with purchasing rates dropping from 87% in 2008 to 74% in 2016. Low buying patterns for game consoles (12%), connected Blu-ray (5%), and DVRs (3%) contributed to the decline.

"Today, consumers are satisfied with many of their existing products, provided they are working well," said Tricia Parks, president, CEO and founder of the research house. "Many product categories are following predictable patterns. Consumers value their connected CE products, but there is no big purchase buzz except for personal assistants with voice, particularly the Amazon Echo. Its 'wow factor' is translating into true consumer excitement, interest and adoption."

Parks says smart speakers with personal assistants, such as the Amazon Echo/Dot/Tap and Google Home, earn the highest NPS (Net Promoter Score) of all surveyed CE devices. The excitement generated by the Amazon Echo has set off a round of competitive entries and new options.

The research house says more broadly diffused broadband capability and saturation for flat screens and smartphones contribute to declining purchase rates for many CE categories. A lack of familiarity for innovations such as virtual reality (VR) headsets and 4K/UltraHD TVs also contributes. Broadband households now own an average of 8.1 connected CE products, 76% growth since 2010. Many households are satisfied with what they have; manufacturers need to excite their markets with innovations.

Tracked devices include smart watches, computers, streaming devices, gaming consoles, VR headsets, 4K TVs, wearable cameras, and other emerging devices.

Other findings indicate:

  • Nearly half of all broadband households have a smart TV.
  • Ownership of game consoles declined from 58% in 2016 to 49% in 2017.
  • 87% of VR headset purchasers are first-time buyers.
  • 70% of streaming media player owners report using their devices one to three times or more per week.