Prepared June 2014

SMARTWATCHESTHE CONSUMER VIEW

INTRODUCTION

HOW THE RESEARCH WAS CONDUCTED/ Online survey of 500 participants

/ Fieldwork kindly conducted by OnePoll

RESEARCH PARTICIPANTS/ Representative of online adult population

DISCOVER/ Interest and attitudes towards Smartwatches

/ Who are the likely Smartwatch adopters

/ What are the barriers to Smartwatch take-up

/ Which brands would buyers consider

/ Where will Smartwatches be used and what for

With new Smartwatch launches anticipated from Apple, Motorola and LG,

and the launch of Android Wear, will 2014 be the year that Smartwatches

gain serious appeal? Read on to find out the consumer view

EXPLORING THE

APPEAL &

ATTITUDES

TOWARDS

SMARTWATCHES

37% ARE INTERESTED IN

OWNING A SMARTWATCHA REAL “NEED” FOR THE TECHNOLOGY MUST BE

CREATED TO GENERATE MASS INTEREST

With a minority currently interested in

Smartwatches – the benefits of the devices have

yet to land with most consumers

Despite the broad audience for Smartwatches, current

interest is fairly modest with just 12% „very interested.

Brands need to conjure a need for the technology

amongst consumers for it to really take off

12%

26%

28%

35% Very interested

Quite interested

Not very interested

Not at all interested

Interest in owning a Smartwatch (%)

34%Female

41%Male

50%63%

47%36% 26% 13%

18-24 25-34 35-44 45-54 55-64 65+

34Avg. age

39%Partner

57%Children

35%Suburbs/

town

48%A city

24%Rural/

villages

% Interested by location type

% Interested by Gender % Interested by location type

% Interested by who Live with…

WHO HAS THE GREATEST INTEREST?MALES, 25-34 YEAR OLDS, PEOPLE WITH KIDS AND THOSE LIVING IN CITIES MOST INTERESTED

Reasons for rejecting a Smartwatch - %

WHAT COULD PREVENT TAKE-UP?USERS NEED CONVINCING OF THE UNIQUE BENEFITS OF SMARTWATCHES OVER

SMARTPHONES, WHICH ARE TYPICALLY SEEN AS SUPERIOR

72%

44%

38%

25%

15%

13%

12%

10%

I don’t have any need for one

My phone does everything I need

I wouldn’t want to pay for it

The watch would be too big

I don’t like the designs

I don’t know enough about it

The battery life would put me off

Other reasons

“It’s a mobile phone

that you can wear.

Why would you

need one?”

Agree that they don't really

understand the benefits of

a Smartwatch

48%

Base: All not interested in owning a Smartphone (315 people)

LIKES & DISLIKESAN EASILY ACCESSIBLE SMART DEVICE WITH USEFUL APPS APPEALS BUT MANY NEED TO BE

CONVINCED AS TO HOW THE FORM FACTOR CAN BE PRACTICAL & LOOK GOOD

CONNECTEDNESS“Great if you need to be in

touch or on business all

the time”

READILY ACCESSIBLE“How fab so much easier

to have something on your

wrist.”

FUTURISTIC“This is very 'James

Bond„…can do all that

their phone would do”

HEALTH & FITNESS“I could monitor how many

calories I was burning at the

gym ”

DEVICE CONVERGANCE “Dispenses with the need for

so many other gadgets to be

carried around.”

USEFUL UTILITY APPS“When out and about, a

number of features including;

weather, maps, navigation”

CONNECTION FATIGUE“I don‟t want to be

connected to everybody all

the time!”

IMPRACTICAL SCREEN SIZE“Too small to use as

touchscreen when on the go.”

LOOKS & DESIGN“A female would look very

silly wearing one of these.”

DUPLICATES SMARTPHONES “I can get the same info on my

smartphone so why would I

pay for an expensive watch?.”

LACKING A PURPOSE“It is a solution in search of

problem . I see no reason to

own one.”

PRICE EXPECTATIONS“Probably the price I should

imagine it will be out of my

price range.”

Positives Negatives

HIGH EXPECTATIONSUSERS WANT A WELL DESIGNED, SECURE SMARTWATCH WITH A LONG BATTERY LIFE

Average time users would

expect to use Smartwatch

before re-charging

4.5days

“Not sure if I like the idea of wearing a smartwatch as they

do look a bit bulky”

Think Smartwatches don't

look as good as normal

wristwatches

52%Would worry

about Smartwatches

being stolen

51%

“Expensive, tiny screen, risk

of getting broken or stolen”

The potential users view…

“They are bound to have a

very poor battery life”

On the go At homeAt work

93% 38% 27%

“…it’s so much easier to have something on your wrist then

having to get it out of your pocket all the time.”

“…important apps will be with you at all times and convenient as its on your wrist not inside

your pocket or bag.”

On the go use driven by ease of access and convenience…

“More convenient than a phone, less likely to drop

or lose it.”

WHERE WILL SMARTWATCHES BE USEDIN CONTRAST TO TABLETS SMARTWATCHES ARE CLEARLY „ON THE GO‟ DEVICES

62%56% 55% 52% 52% 50%

45% 42% 40%

Maps / navigation

Email Making phone calls

Taking or editing photos

Listening to music

Calendars / tasks

General web browsing

Traffic / travel news

Tracking fitness

Expected features would use on Smartwatches - %

SMARTWATCH APPS OF INTERESTNAVIGATION & LOCATION BASED APPS IN PARTICULAR APPEAL ON SMARTWATCH

= More likely to use than on Smartphone or tablet

“Screen is much smaller than

phone…will be hard to type / browse”

Benefits vs. existing devices but also duplication…

instead of smartphone

as well as smartphone

Will use smartwatch…

instead of tablet

as well as tablet

instead of laptop

as well as laptop62%

23%

48%

18%

72%

10%

SMARTWATCH USE WITH OTHER DEVICESSMARTWATCH UPTAKE MOST LIKELY TO IMPACT ON PHONE USAGE

“I have my laptop for

all my needs.”

“I already have all these

facilities on my tablet.”

“Information readily available

without having to refer to tablet..”

Vs. Vs.

“Does almost everything you can do

on a home laptop.”

Vs.

“Smaller and easier to carry than

a phone”

76%

52%

49%

44%

35%

33%

29%

21%

17%

16%

11%

7%

Brands that would be considered for smartwatch - % Consider

PRICE & BRAND EXPECTATIONSLEADING SMARTPHONE BRANDS APPPEAL MOST; WATCH BRANDS LESS CREDIBLE

£186

Average amount

consumers are willing

to pay for a

smartwatch

1SIGNIFICANT INTEREST BUT A TRULY

COMPELLING PRODUCT IS REQUIRED

/ Interest in smartwatches is currently moderate and

brands must fashion a real “need” for the technology

/ Those who are interested have a relatively

mainstream profile suggesting the potential for mass

appeal

UTILITY APPS LIKELY TO DRIVE

CONSIDERATION OF SMARTWATCHES

/ Ease of access means the technology lends itself to

use when out and about including when exercising

/ Navigation, Travel news and fitness tracking are more

likely to be used on a watch than phone or tablet

EXISTING DEVICES ARE THE BIGGEST

BARRIER TO SMARTWATCHES

/ Smartwatches are often compared to smartphones /

tablets; there is confusion about the benefits over

and above these devices

/ Ease of access and portability are seen as a clear

strengths but many remain unconvinced by form

factor practicalities and looks

USERS HAVE HIGH EXPECTATIONS AS TO

WHAT A SMARTPHONE SHOULD OFFER

/ Users want unique features, good looks and strong

battery life at an accessible price

/ Apps and features need to tailored to the watch

rather than a small duplication of content on phones

KEY TAKE-OUTSAPPEAL AND ATTITUDES TOWARDS SMARTWATCHES

2

3

4

TO FIND OUT MORE

G E T I N T O U C H , W E ‟ D L O V E T O H E A R F R O M Y O U

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