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Consumer Technology Spending to Rise in 2004

Independent survey from Zanthus unveils consumer technology spending trends

Portland, OR, October 28, 2003, Zanthus, a leading market research-based consulting company, today unveiled the results of its latest survey of home technology spending trends for 2004. According to the independent consumer survey, laptop computers, multi-featured mobile phones and digital entertainment products will top consumers’ buying lists over the next 12 months. The results are based on a Web-based survey of 671 U.S. households with Internet access (or 57 percent of U.S. households). The survey was conducted in September by the Portland, Ore. research firm; the results were benchmarked against an earlier survey conducted by Zanthus in March.

Highlights of the survey results include the following:

Smartphones to continue sales gains – In the March 2003 survey, 13 percent of all respondents indicated they would purchase a mobile device (cell phone, smartphone, PDA with voice, etc.). According to the Sept. survey, this number remains steady; however, 5 percent of all purchases are likely to be smartphones, or mobile phones with special computer-enabled features like PDA functions and Internet access (up from 3 percent in March). The Sept. survey also revealed that about 20 percent of Internet households already own a smartphone.
Notebooks continue rise in popularity; Tablet PCs to struggle – 19 percent of Internet households are likely to purchase a new computer in 2004 (up from 15 percent reporting last March). 11 percent of these households are likely to purchase a laptop computer compared to 7 percent of households that favored a desktop. The Tablet PC is considered to be a poor option, with only 1 percent of respondents indicating they are likely to purchase.
Home networking poised for another strong year – Four percent of Internet households are likely to install a home network in the next 12 months. This estimate would mean year-over-year growth in this category of 33 percent, which is slightly greater than that from 2002 to 2003.
Digital models to dominate camera and camcorder sales – Digital camera sales will continue to be brisk in 2004. Already, 55 percent of Internet households own a digital still camera. 12 percent of the respondents plan to purchase one in the next 12 months (up from 10 percent last March), and of the 9 percent of Internet households likely to purchase a camcorder in the next 12 months, 56 percent intend to purchase a digital model.
Email remains the popular choice for sharing photos – 59 percent of the respondents send photos as email attachments; 45 percent print them on photo quality paper; and 32 percent of the respondents upload digital pictures to a personal Web site for distant family members to view.
Flat Panel TVs and Sony PlayStations to thrive - 10 percent of U.S. households are likely to purchase a new television in the next 12 months (up from 8 percent last March). Half of these purchases are likely to be a flat panel model. Additionally, 4 percent of the respondents indicated they are likely to purchase a new video game system, with 60 percent of these purchases likely to be the Sony PlayStation2.

“Our survey results clearly show that the consumer technology market is gaining momentum,” said David Edwards, founder and CEO of Zanthus. “This growth can be attributed to a number of factors – growing consumer confidence, dropping prices and an improvement in the perceived value of many products. Highly desirable digital technologies, such as DVD players, digital cameras, and camcorders, are finally becoming more affordable for mass market consumers. As this trend continues, we expect consumer technology sales to continue to rise over the next 12 months.”

About Zanthus
Zanthus brings a unique scientific rigor to business consulting. The kind of research-informed consulting emerging and established leaders need to make critical business decisions—confidently. Based in Portland, Ore., the firm provides a rare combination of research and industry expertise exclusively to high-tech companies. The firm is particularly well-known for its commitment to reliable research methods and analytical techniques.

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