Digital Trends Spring - UK - March 2015
Introduction
 
The consumer technology sector has been shown to be the best performer when it comes to creating excitement surrounding new product launches, with 33% of consumers saying technology brands build more anticipation than those in other sectors (according to the marketing agency Five by Five). This was demonstrated once again at the end of 2014 with the launch of Apple’s latest iPhone, which achieved record worldwide sales in the last quarter of the year.

While smartphones have continued to excite (and are now owned by 75% of UK consumers), demand for tablets is expected to wane in 2015 as the market begins to mature. A lack of innovation combined with the anticipated revival of the neighbouring laptop market (triggered by the upcoming launch of Windows 10) is likely to curb interest in tablets, putting pressure on manufacturers to replicate the pace of innovation displayed in the smartphone market.

This report examines the trends in consumer technology and digital media in the UK, looking at changes in device ownership over the past three months and consumers’ purchasing intentions. Next the report looks at changes in online activity and analyses what industry developments are driving these changes.

This edition of Digital Trends also has a focus on online security and privacy, as we examine consumers’ concerns about using online sites and services, and look at some of the measures they take in order to protect themselves from these issues.

Definition 
The term ‘laptop’ in this report refers to a computer intended for mobile use, which has the display, primary input device and speakers integrated into one unit.

●	The definition encompasses notebooks, netbooks, MacBooks, Chromebooks and Ultrabooks.
●	The category includes laptops that can be converted into a tablet form factor such as those with swivel displays or sliding keyboards, or those with a detachable keyboard which provides greater functionality, such as improved battery life or additional connection ports (defined as ‘hybrid laptops’ or ‘convertible laptops’).
●	The category excludes tablets that can be docked with a standalone keyboard to convert to laptop form factor (eg Microsoft Surface), defined as ‘hybrid tablets’.

The term ‘desktop’ in this report refers to a computer that is intended for regular use at a single location. It encompasses towers, all-in-ones and small form factors such as mini and nettop PCs.

The term ‘tablet’ in this report refers to a slate form factor computer designed for mobile use, with an integrated touchscreen as the primary display and mode of input.

Smart TV refers to internet-enabled television sets, which generally give access to apps (eg BBC iPlayer, Netflix, Skype) and a web browser when the television is connected directly to the internet.

Crown copyright material is reproduced with the permission of the Controller of HMSO and the Queen’s Printer for Scotland.

Value figures are inclusive of VAT unless stated otherwise.

Abbreviations
3D	Three-Dimensional	
AR	Augmented Reality	
BBC	British Broadcasting Corporation	
BT	British Telecom	
CEO	Chief Executive Officer	
CES	Consumer Electronics Show	
DVD	Digital Versatile Disc	
GMI	Global Market Insite	
GPS	Global Positioning System	
HD	High Definition	
HDMI	High Definition Multimedia Interface	
LED	Light Emitting Diode	
NFC	Near Field Communication	
OS	Operating System	
PC	Personal Computer	
RBS	Royal Bank of Scotland	
SIM	Subscriber Identity Module	
TV	Television	
UK	United Kingdom	
US	United States	
VoIP	Voice over Internet Protocol