Lessons from Home Automation Early Adopters, Why Dropcam is better than Nest and More

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Presentation by Argus Insights CEO John Feland to the Telecom Council SPIF on the initial results of a Home Automation study looking at the key attributes of early adopters. This short talk teases consumer response to products such as Nest, Dropcam, Simplisafe, Philips Hue, and more as consumers weigh in on what works and what fails as they seek to make their homes and lives smarter. Extra credit goes to an early look at how the conversation around Apple's entry into the Internet of Things might go over at WWDC 2014. Most Home Automation consumers are using their iPhones to connect to their homegrown ecosystems, why shouldn't Apple belly up to the Home Automation bar! Plus you'll learn the surprise use for Dropcam and no nannies are involved!

Geräte & Hardware

Finding a Home within Home
Automation…
What we can learn from Early Adopters
Dr. John Feland, CEO

Page 2© 2014 Argus Insights, Inc. Confidential: Do Not Distribute
(Really) Brief Intro to Argus Insights
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Argus Insights Beat Wall Street Estimates for
Q2 2013 iPhone Sales
Copyright© 2013 Argus Insights, Inc.
Consensus
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Estimate BasedApple’s Actual Q2
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• Mobile Phones
• Home Automation
• Consumer Electronics
• Wearables
• Appliances, Large and Small
• Consumer Services
• CPG and more!

Page 3© 2014 Argus Insights, Inc. Confidential: Do Not Distribute
Less surprises equals less buzz

Page 4© 2014 Argus Insights, Inc. Confidential: Do Not Distribute
iPhone 5C was the Worst Launch in Apple’s History

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Home Automation is still the Wild West for Consumers
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Belkin D-Link Dropcam Ecobee Insteon Iris Kwikset Mi Casa Verde Nest Nexia Philips Revolv Schlage SimpliSafe SmartThings

Page 7© 2014 Argus Insights, Inc. Confidential: Do Not Distribute
Diversity of Home Automation segment leads to interesting
emerging market opportunities
• Climate Control is the most discussed within the consumer reviews with frustrations with
Nest and other thermostats leading to almost net negative sentiment
• Light Control is one of the most positive viewed uses within Home Automation
• Many of the “home” security solutions are used to support small business under “Doing
Work”
• Monitoring Cats (n=113) exceeds monitoring elderly or aging parents (n=12)
N=20118
% of HA Consumer Reviews Expressing Positive, Negative, or Neutral Views
Yes, Cats!

Page 8© 2014 Argus Insights, Inc. Confidential: Do Not Distribute
What does this mean for telcos? Key Insights from Early Adopters

Page 9© 2014 Argus Insights, Inc. Confidential: Do Not Distribute
WWAD? (What Will Apple Do?)
4/17/2014 4/24/2014 5/1/2014 5/8/2014 5/15/2014 5/22/2014 5/29/2014
Social Mentions of Apple with respect to Home Automation

Page 10© 2014 Argus Insights, Inc. Confidential: Do Not Distribute
Points for Discussion
• Where might there be services opportunities?
• How best to craft that trusted relationship with
consumers?
• Build or Partner, best path to building and
ecosystem?

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Lessons from Home Automation Early Adopters, Why Dropcam is better than Nest and More

1. Finding a Home within Home Automation… What we can learn from Early Adopters Dr. John Feland, CEO

2. Page 2© 2014 Argus Insights, Inc. Confidential: Do Not Distribute (Really) Brief Intro to Argus Insights COLLECT REPORTANALYZ E TAKE ACTION 0 10 20 30 40 50 60 0 1000 2000 3000 4000 5000 6000 7000 Qtr1 Qtr2 Qtr3 Qtr4 Qtr1 Qtr2 Qtr3 Qtr4 Qtr1 Qtr2 2011 2011 2011 2011 2012 2012 2012 2012 2013 2013 MillionsofiPhones;BillionsofdollarsinRevenue BuzzVolumeforiPhoneModels Argus Insights Beat Wall Street Estimates for Q2 2013 iPhone Sales Copyright© 2013 Argus Insights, Inc. Consensus Morgan Stanley Argus Insights Estimate BasedApple’s Actual Q2 iPhone Unit Volume • Mobile Phones • Home Automation • Consumer Electronics • Wearables • Appliances, Large and Small • Consumer Services • CPG and more!

5. Page 5© 2014 Argus Insights, Inc. Confidential: Do Not Distribute Home Automation is still the Wild West for Consumers -1 -0.8 -0.6 -0.4 -0.2 0 0.2 0.4 0.6 0.8 1 12/12/2013 1/1/2014 1/21/2014 2/10/2014 3/2/2014 3/22/2014 4/11/2014 5/1/2014 5/21/2014 6/10/2014 ConsumerDelight(-1to1) Smartphone Competitive Landscape Alcatel Apple Asus BlackBerry Samsung Casio HTC Huawei Kyocera LG Motorola NEC Nokia Palm Pantech Sanyo Sharp Sony T-Mobile ZTE -1 -0.8 -0.6 -0.4 -0.2 0 0.2 0.4 0.6 0.8 1 12/12/2013 1/1/2014 1/21/2014 2/10/2014 3/2/2014 3/22/2014 4/11/2014 5/1/2014 5/21/2014 6/10/2014 ConsumerDelight(-1to1) Home Automation Competitive Landscape Belkin D-Link Dropcam Ecobee Insteon Iris Kwikset Mi Casa Verde Nest Nexia Philips Revolv Schlage SimpliSafe SmartThings

6. Page 6© 2014 Argus Insights, Inc. Confidential: Do Not Distribute Lessons from Nest, Simplisafe, Dropcam and others -1 -0.8 -0.6 -0.4 -0.2 0 0.2 0.4 0.6 0.8 1 12/12/2013 1/1/2014 1/21/2014 2/10/2014 3/2/2014 3/22/2014 4/11/2014 5/1/2014 5/21/2014 6/10/2014 ConsumerDelight(-1to1) Home Automation Competitive Landscape Dropcam Insteon Iris Nest SimpliSafe Nest Adoption is dropping since Google purchase Lowe’s Iris is disappointing users across the board Mature brand Insteon challenged moving from Dealers to Consumers Simplisafe disaggregates service providers like ADT to the delight of consumers Dropcam’s ease of use is pushing out other security camera vendors

7. Page 7© 2014 Argus Insights, Inc. Confidential: Do Not Distribute Diversity of Home Automation segment leads to interesting emerging market opportunities • Climate Control is the most discussed within the consumer reviews with frustrations with Nest and other thermostats leading to almost net negative sentiment • Light Control is one of the most positive viewed uses within Home Automation • Many of the “home” security solutions are used to support small business under “Doing Work” • Monitoring Cats (n=113) exceeds monitoring elderly or aging parents (n=12) N=20118 % of HA Consumer Reviews Expressing Positive, Negative, or Neutral Views Yes, Cats!

9. Page 9© 2014 Argus Insights, Inc. Confidential: Do Not Distribute WWAD? (What Will Apple Do?) 4/17/2014 4/24/2014 5/1/2014 5/8/2014 5/15/2014 5/22/2014 5/29/2014 Social Mentions of Apple with respect to Home Automation

10. Page 10© 2014 Argus Insights, Inc. Confidential: Do Not Distribute Points for Discussion • Where might there be services opportunities? • How best to craft that trusted relationship with consumers? • Build or Partner, best path to building and ecosystem?

Hinweis der Redaktion

This slide details the usage scenarios reported by consumers reviewing recent Home Automation purchases. While climate control dominates, it is a source of concern for many consumers. Door locks, lighting controls are other common uses with consumers reporting the most satisfaction with lighting controls. What is surprising are the emerging uses for Home Automation, such as monitoring cats or elderly parents.

Lessons from Home Automation Early Adopters, Why Dropcam is better than Nest and More

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Hinweis der Redaktion