Let Us Entertain You! Analysis of Consumer Entertainment Choices Across Connected Devices

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Recent analysis presented at the Telecom Council's Deep Dive on Entertainment examining consumer entertainment activities across connected devices, including Smartphone, Tablets, Laptops, and All-In-Ones. The presentation details which behaviors are top of mind for consumers among Doing Work, Surfing the Web, Watching Movies, Playing Games or Listening to Music. The presentation also dives deep into how consumer entertainment behaviors differ between smartphone and tablet brands. Argus Insights is a new type of market intelligence company, founded by tech industry veterans looking for better ways to connect the dots between technology innovation and consumer adoption. Argus Insights sits between traditional research firms, and Social Analytics companies, to provide focused and actionable analysis on where consumers are taking the market, who is winning and why. More than just a buzz meter, proprietary consumer demand metrics have beaten Wall Street estimates on iPhone unit sales 10 of the last 12 quarters. Global coverage of Smartphones, Wearables, Tablets, Home Automation, Internet of Things and more lets Argus Insights bridge intelligence gap between the quarterly forecasts. Real-time analytics cut through the branding buzz to expose how technology and innovation are driving consumer adoption.

Datos y análisis

Let Us Entertain You!
Analysis Of Consumer Entertainment Preferences
Across Device Types And Brands
Dr. John Feland, CEO

We Analyze the Internet of Humans
COLLECT ANALYZ REPORT
E
TAKE
ACTION
60
50
40
30
20
10
0
Argus Insights
Morgan Stanley
Consensus
© 2014 Argus Insights, Inc. Confidential: Do Not Distribute Page 2
7000
6000
5000
4000
3000
2000
1000
0
Apple’s Actual Q2
Qtr1 Qtr2 Qtr3 Qtr4 Qtr1 Qtr2 Qtr3 Qtr4 Qtr1 Qtr2
2011 2011 2011 2011 2012 2012 2012 2012 2013 2013
Millions of iPhones; Billions of dollars in Revenue
Buzz Volume for iPhone Models
Argus Insights Beat Wall Street Estimates for
Q2 2013 iPhone Sales
Copyright© 2013 Argus Insights, Inc.
• Mobile Phones
• Home Automation (IoT)
• Consumer Electronics
• Wearables
• Appliances, Large and Small
• Consumer Services
• CPG and more!

See the Consumer Demand Shift in Real Time
© 2014 Argus Insights, Inc. Confidential: Do Not Distribute Page 3
Galaxy S3 Launch
Challenges iPhone
Dominance
Galaxy S4 fizzles,
boosts demand for
S3 and iPhone 5
Galaxy S5 final
exceeds prior two
launches and beats
iPhones

Case Study: Amazon Fire Phone’s Failure To Reach Escape Velocity
© 2014 Argus Insights, Inc. Confidential: Do Not Distribute Page 4
July 25
Fire Phone
Launched
July 28
Argus Insights Blog
Predicts Failure Sep 8
Amazon Drops Price
to 99 cents,
GreenPeace strikes
Aug 26
Amazon only sells
35k in first 25 days

Consumer Interest In Connected Screens Increasing Year over Year
© 2014 Argus Insights, Inc. Confidential: Do Not Distribute Page 5
Consumer Interest by Segment
Tablets
Smartphone
MacBooks
Generic Windows Laptops
Chromebook
All In One
2in1

Tablets Are Losing Consumer Mindshare to Mobile While Notebooks Persist
© 2014 Argus Insights, Inc. Confidential: Do Not Distribute Page 6
100%
90%
80%
70%
60%
50%
40%
30%
20%
10%
0%
Consumer Interest by Segment
Tablets
Smartphone
MacBooks
Generic Windows Laptops
Chromebook
All In One
2in1

Gaming and Movies Win Out Over Work On Most Platforms
© 2014 Argus Insights, Inc. Confidential: Do Not Distribute Page 7
14%
12%
10%
8%
6%
4%
2%
0%
All In One 2in1 Chromebook Windows Laptops Smartphone Tablets MacBooks
Doing Work
Gaming
Watching Movies
Web Surfing
Music

Video Content Consumption Has Two Gorillas and A Ton Of Chimps
© 2014 Argus Insights, Inc. Confidential: Do Not Distribute Page 8
100%
90%
80%
70%
60%
50%
40%
30%
20%
10%
0%
All In One 2in1 Chromebook Windows Laptops Smartphone Tablets MacBooks
Vimeo
HBO
Hulu
Crackle
Amazon Prime
YouTube
Netflix

Overall Consumers Are Mostly Satisfied With Their Connected Entertainment
© 2014 Argus Insights, Inc. Confidential: Do Not Distribute Page 9
50%
45%
40%
35%
30%
25%
20%
15%
10%
5%
0%
5 6 7 8 9 10 11 12 1 2 3 4 5 6 7 8 9 10
2013 2014
Net Sentiment
Doing Work
Gaming
Watching Movies
Web Surfing
Music

Watching Movies is Most Enjoyable on Larger Screen Devices
© 2014 Argus Insights, Inc. Confidential: Do Not Distribute Page 10

While Surfing Dominates Handsets, Tablets Are For Gaming
© 2014 Argus Insights, Inc. Confidential: Do Not Distribute Page 11

Nokia and Samsung Get High Marks for Doing Work and Samsung Shines for Surfing
© 2014 Argus Insights, Inc. Confidential: Do Not Distribute Page 13

Gaming and Movies Continue to Delight Mobile Users
© 2014 Argus Insights, Inc. Confidential: Do Not Distribute Page 14

Music Matters on Tablets More than Surfing!
© 2014 Argus Insights, Inc. Confidential: Do Not Distribute Page 16

Windows Tablet Users Are More Game Crazy Than Ipad Users
© 2014 Argus Insights, Inc. Confidential: Do Not Distribute Page 17

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1. Let Us Entertain You! Analysis Of Consumer Entertainment Preferences Across Device Types And Brands Dr. John Feland, CEO

2. We Analyze the Internet of Humans COLLECT ANALYZ REPORT E TAKE ACTION 60 50 40 30 20 10 0 Argus Insights Morgan Stanley Consensus © 2014 Argus Insights, Inc. Confidential: Do Not Distribute Page 2 7000 6000 5000 4000 3000 2000 1000 0 Apple’s Actual Q2 Qtr1 Qtr2 Qtr3 Qtr4 Qtr1 Qtr2 Qtr3 Qtr4 Qtr1 Qtr2 2011 2011 2011 2011 2012 2012 2012 2012 2013 2013 Millions of iPhones; Billions of dollars in Revenue Buzz Volume for iPhone Models Argus Insights Beat Wall Street Estimates for Q2 2013 iPhone Sales Copyright© 2013 Argus Insights, Inc. • Mobile Phones • Home Automation (IoT) • Consumer Electronics • Wearables • Appliances, Large and Small • Consumer Services • CPG and more!

3. See the Consumer Demand Shift in Real Time © 2014 Argus Insights, Inc. Confidential: Do Not Distribute Page 3 Galaxy S3 Launch Challenges iPhone Dominance Galaxy S4 fizzles, boosts demand for S3 and iPhone 5 Galaxy S5 final exceeds prior two launches and beats iPhones

4. Case Study: Amazon Fire Phone’s Failure To Reach Escape Velocity © 2014 Argus Insights, Inc. Confidential: Do Not Distribute Page 4 July 25 Fire Phone Launched July 28 Argus Insights Blog Predicts Failure Sep 8 Amazon Drops Price to 99 cents, GreenPeace strikes Aug 26 Amazon only sells 35k in first 25 days

5. Consumer Interest In Connected Screens Increasing Year over Year © 2014 Argus Insights, Inc. Confidential: Do Not Distribute Page 5 Consumer Interest by Segment Tablets Smartphone MacBooks Generic Windows Laptops Chromebook All In One 2in1

6. Tablets Are Losing Consumer Mindshare to Mobile While Notebooks Persist © 2014 Argus Insights, Inc. Confidential: Do Not Distribute Page 6 100% 90% 80% 70% 60% 50% 40% 30% 20% 10% 0% Consumer Interest by Segment Tablets Smartphone MacBooks Generic Windows Laptops Chromebook All In One 2in1

7. Gaming and Movies Win Out Over Work On Most Platforms © 2014 Argus Insights, Inc. Confidential: Do Not Distribute Page 7 14% 12% 10% 8% 6% 4% 2% 0% All In One 2in1 Chromebook Windows Laptops Smartphone Tablets MacBooks Doing Work Gaming Watching Movies Web Surfing Music

8. Video Content Consumption Has Two Gorillas and A Ton Of Chimps © 2014 Argus Insights, Inc. Confidential: Do Not Distribute Page 8 100% 90% 80% 70% 60% 50% 40% 30% 20% 10% 0% All In One 2in1 Chromebook Windows Laptops Smartphone Tablets MacBooks Vimeo HBO Hulu Crackle Amazon Prime YouTube Netflix

9. Overall Consumers Are Mostly Satisfied With Their Connected Entertainment © 2014 Argus Insights, Inc. Confidential: Do Not Distribute Page 9 50% 45% 40% 35% 30% 25% 20% 15% 10% 5% 0% 5 6 7 8 9 10 11 12 1 2 3 4 5 6 7 8 9 10 2013 2014 Net Sentiment Doing Work Gaming Watching Movies Web Surfing Music

12. Brand Breakdown For Smartphones

15. Brand Breakdown for Tablets

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