do consumers want high performance displays?

Do Consumers Want a New 4(01)K Display?

Page 2© 2013 Argus Insights, Inc. Confidential: Do Not Distribute

“Apple is unlikely to make much of an impact on this market … the iPhone won’t make a long term mark on the industry”Matthew Lynn - Bloomberg

“The iPhone will not substantially alter the fundamental structure or challenges of the mobile industry”Charles Golvin – Forrester Research

“The iPhone is a niche product”Olli-Pekka Kallasvuo – Nokia CEO in April 2008

Page 3© 2013 Argus Insights, Inc. Confidential: Do Not Distribute

“If you can not measure it, you can not improve it.”Lord Kelvin

Page 4© 2012 Argus Insights, Inc. Confidential: Do Not Distribute

Measuring the Gap Between Brand Promise and Consumer Reality

Page 5© 2013 Argus Insights, Inc. Confidential: Do Not Distribute

Consumer Review Derived Demand Metrics Are Effective Leading Indicators

• Delight and Buzz are affective leading indicators of consumer demand

• Traditional sales forecasts are based on what consumers bought, Argus Insights metrics track what consumer enjoyed

• Has been used to find disruptive products and brands• Efficacy tested across Smartphones, Tablets, Automobiles,

Televisions and more

Jan-

1-20

11

Feb-

1-20

11

Mar

-1-2

011

Apr-1

-201

1

May

-1-2

011

Jun-

1-20

11

Jul-1

-201

1

Aug-1

-201

1

Sep-

1-20

11

Oct-1

-201

1

Nov-1

-201

1

Dec-1

-201

1

Jan-

1-20

12

Feb-

1-20

12

Mar

-1-2

012

Apr-1

-201

2

May

-1-2

012

Jun-

1-20

12

Jul-1

-201

2

Aug-1

-201

2

Sep-

1-20

12

Oct-1

-201

2

Nov-1

-201

2

Dec-1

-201

2

Jan-

1-20

13

Feb-

1-20

13

Mar

-1-2

013

Apr-1

-201

3 $-

$500,000,000

$1,000,000,000

$1,500,000,000

$2,000,000,000

$2,500,000,000

$3,000,000,000

$3,500,000,000

$4,000,000,000

$4,500,000,000

Comparing NPD Actual Sales to Argus Insights Predictions

$ NPD Sold Actual

Predicted Using Argus Insights Metrics

Worl

dW

ide M

onth

ly S

ale

s

Adjusted R2 of 72.4% and a p-value of 0.0017

Page 6© 2013 Argus Insights, Inc. Confidential: Do Not Distribute

Others predict based on what consumers bought, Argus Insights predicts based on what consumers love

Qtr1 Qtr2 Qtr3 Qtr4 Qtr1 Qtr2 Qtr3 Qtr4 Qtr1 Qtr22011 2011 2011 2011 2012 2012 2012 2012 2013 2013

0

1000

2000

3000

4000

5000

6000

7000

0

10

20

30

40

50

60

Argus Insights Beat Wall Street Estimates for Q2 2013 iPhone Sales

Apple iPhone 4 Apple iPhone 4S Apple iPhone 5Apple iPhone 3GS Apple iPhone 3G Apple iPhoneQuarterly iPhone Sales

Bu

zz V

olu

me

fo

r iP

ho

ne

Mo

de

ls

Mil

lio

ns o

f iP

ho

ne

s;

Bil

lio

ns o

f d

oll

ars

in

Re

ve

nu

e

Copyright© 2013 Argus Insights, Inc.

Consensus Estimate

Morgan Stan-ley Estimate

Argus InsightsEstimate Based on So-cial Metrics

Apple’s Actual Q2 iPhone Unit Vol-ume

High Performance Displays

Page 8© 2013 Argus Insights, Inc. Confidential: Do Not Distribute

Consumers First Introduction to High Performance Displays…

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Results of iPhone 5S and 5C launch

AKA “We miss Steve!”

Page 10© 2013 Argus Insights, Inc. Confidential: Do Not Distribute

14 19 24 29 340

0.10.20.30.40.50.60.70.80.9

1

168.00

App

le

14 19 24 29 340

0.10.20.30.40.50.60.70.80.9

1

371.00

Sam

sung

Samsung and Apple Consumers Held Their Breath Before the iPhone Launch

Week Number

Week Number

Page 11© 2013 Argus Insights, Inc. Confidential: Do Not Distribute

14 19 24 29 340

0.20.40.60.8

1 144.00

HTC

14 19 24 29 340

0.20.40.60.8

1

98.00

LG

14 19 24 29 340

0.5

1

55.00

Nok

ia

14 19 24 29 340

0.20.40.60.8

157.00

Mot

orol

a Other Handset Customers Barely Skipped A Beat

Page 12© 2013 Argus Insights, Inc. Confidential: Do Not Distribute

Less surprises equals less buzz

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iPhone 5S and 5C Are Slow To Accelerate

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Lowest iPhone Demand at Launch In A Long Time

What’s so Ultra About 4K?

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Remember When?

Page 17© 2013 Argus Insights, Inc. Confidential: Do Not Distribute

But at CES 2013, 4K was the New 3D TV

Page 18© 2013 Argus Insights, Inc. Confidential: Do Not Distribute

How is 4K Adoption By Consumers Looking?

0 1 2 3 4 5 6 7 8 9 10 110

0.1

0.2

0.3

0.4

0.5

0.6

0.7

0.8

0.9

1

Comparison Across Display Products

1080p 2160p (4K) IPS

Calendar Month 2013Rep

ort

ed

Con

sum

er

Delig

ht

Levels

(-

1 t

o 1

)

Page 19© 2013 Argus Insights, Inc. Confidential: Do Not Distribute

4K Early Adopters Are Few But Delighted

0 1 2 3 4 5 6 7 8 9 10 110

0.2

0.4

0.6

0.8

1

1.2

4K Televisions Are Delighting Consumers

2160p (4K)

Calendar Month 2013

Rep

ort

ed

Con

sum

er

Delig

ht

Levels

(-1

to

1)

Page 20© 2013 Argus Insights, Inc. Confidential: Do Not Distribute

Overall Perceptions of HPD User Experience

Product Passion

Price / Value

Usability

Style/Design

Movies

Sony

Display/Screen/Graphics

Size/Weight

Picture/Video Quality

Functionality

Reliability

Speed/Performance

Features

Sound Quality

Phone Support

Home

Samsung

Gaming

Best Buy

News/Weather/Sports

-20% 0% 20% 40% 60%

4K Televisions

Neg % Pos %

Product Passion

Price / Value

Usability

Style/Design

Movies

Sony

Display/Screen/Graphics

Size/Weight

Picture/Video Quality

Functionality

Reliability

Speed/Performance

Features

Sound Quality

Phone Support

Home

Samsung

Gaming

Best Buy

News/Weather/Sports

-20% 0% 20% 40% 60%

HD TV (1080p)

Neg % Pos %

Product Passion

Price / Value

Usability

Style/Design

Movies

Sony

Display/Screen/Graphics

Size/Weight

Picture/Video Quality

Functionality

Reliability

Speed/Performance

Features

Sound Quality

Phone Support

Home

Samsung

Gaming

Best Buy

News/Weather/Sports

-20% 0% 20% 40% 60%

IPS Monitors

Neg % Pos %

Page 21© 2013 Argus Insights, Inc. Confidential: Do Not Distribute

How Usage Differs Across Displays

Movies

Home

Gaming

News/Weather/Sports

Web Surfing

Significant Other

Family

Sit

Friends

Bedroom

Outside

School

-2% 3% 8% 13%

4K Televisions

Neg % Pos %

Movies

Home

Gaming

News/Weather/Sports

Web Surfing

Significant Other

Family

Sit

Friends

Bedroom

Outside

School

-4% 1% 6% 11% 16%

HD TV (1080p)

Neg % Pos %

Movies

Home

Gaming

News/Weather/Sports

Web Surfing

Significant Other

Family

Sit

Friends

Bedroom

Outside

School

-2% 3% 8% 13%

IPS Monitors

Neg % Pos %

Please contact us if you’d like to know more!

http://www.argusinsights.com Twitter: @argusinsights1-877-992-7487 sales@argusinsights.com