TMT Predictions 2014Advance. Intelligence.

October, 2014

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70% atAug ‘14

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Which device is more important to you —that is, which device could you least do without?

(Among respondents who own both a laptop and a tablet)

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Global Internet Traffic by Device Type

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4K TV

6

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SmartglassesSmartglasses

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You know they areYou know they aretransparent, low-resolution,transparent, low-resolution,work only with awork only with asmartphone, cost ~$500,smartphone, cost ~$500,and may violate variousand may violate variouslaws, right?laws, right?

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SmartglassesSmartglasses

forfor

smartworkerssmartworkers

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Is it time for smartwatches?

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We have had the decade of the device

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The decade of the deviceB

illi

on

s

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Smartphone replacement cycles are gettinglonger

Source: US data, Recon Analytics, BI Intelligence

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5 year trailing CAGR

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Less money for hardware means more money for…

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U.S. consumer electronic sales as a percent of global sales

of PCs, smartphones, tablets, TVs and game consoles

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67%

23%10%

5.1” to 5.9”

6.0” to 6.9”

Phablet ownership breakdown

5.0” to 5.1”

100%

90%

80%

70%

60%

50%

40%

30%

20%

10%

100%

90%

80%

70%

60%

50%

40%

30%

20%

10%

100%

90%

80%

70%

60%

50%

40%

30%

20%

10%

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After seeing TMT Predictions, how likely are you to

spend more money with Deloitte? (normal distribution)

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Thinking about your next mobile device, how likely

are you to purchase a phablet?

(55+ only, n=351)

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Phablet intent to purchase as nextmobile device

n=184 n=230 n=129

46%

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Phablet intent to purchase as nextmobile device (cont’d)

n=72 n=245 n=476 n=239

46%

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Global smartphone sales

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Putting $125B in contextB

illi

on

s

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APEJ portable PC, tablet and phablet shipments,2011 Q4-2013Q2

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Source: The NPD Group, Inc. / Connected Intelligence /

Smartphone Usage Report, 3 months ending July 2013

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Source: The NPD Group, Inc. / Connected Intelligence /

Smartphone Usage Report, 3 months ending July 2013

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Source: Deloitte Global Mobile Consumer Survey, Developed countries, May-June 2013

Base: All Smartphone owners: 16, 378, Smartphone owners 12,313, Large smartphone owners 8,269

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Hours of traditional TV watched per week by allCanadians aged 2+

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0–20% Quintile – average hours per week

Source: BBM Canada, P2+, Each year defined by 4 November weeks, M-Su 2a-2a

*PPMs introduced for Total TV Eng in 2009

Adjusted to compare to PPM data

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Canadians who are currently subscribing tovideo subscription service (i.e. Netflix) or are infirst free month

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n=244 n=437 n=351 n=454 n=578

Canadians who currently subscribe to a videosubscription service (i.e. Netflix) or are in thefree first month

Overall(n=1,032)

19%

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Video subscription services (i.e. Netflix)

n=72 n=245 n=476 n=239

Overall(n=1,032)

19%

7%

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H1 2014 North American Fixed

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4K Video Traffic

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Cisco: “The implications of video growth wouldbe difficult to overstate.”

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Weekly Hours Q42011

Q42013

Change(h:mm)

Change(%)

TV+timeshift 2+ 36:17 37:05 +0:48 +2.2%

TV+timeshift 18-24 27:14 24:15 -2:49 -11.0%

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TMT Predictions tailored events

Duncan Stewart can deliver a presentation for your

office/industry.

• Email Duncan: dunstewart@deloitte.ca

• Follow him on Twitter: @dunstewart

• Connect on LinkedIn

• Subscribe to him on Facebook

• Read his blog: dunstewart.wordpress.com