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BizReport : Research archives : January 26, 2012

Forecast: 56% increase in connected device shipments by 2016

According to new data from NPD In-Stat, the connected device base will increase from 256 million devices (2011) to at least 1.34 billion by 2016. That is a 56% combined annual growth rate. Connected devices include tablets and smartphones as well as connected television and satellite sets, video game consoles and Blu-ray players/recorders.

by Kristina Knight

connected.png"CE is no longer about 'dumb' devices that exist at the edge of the network to provide specific functions, but rather about 'intelligent' devices at the edge of the network that can connect consumers to new stores of content and engage them in new digital experiences," said Norm Bogen, VP of Research, NPD In-Stat."This simple fact is having a profound impact on the development of the digital media and entertainment industry, which clings to the old practices of using networks to control the user viewing experience."

As for the breakdown between devices, NPD In-Stat believes gaming consoles will lead the pack, shipping more than 36 million smart devices in 2016. The fastest growth rate for region could be Eastern Europe, which they predict will have more than 79 million devices shipped in 2016; Asia Pacific is expected to account for more than one-third (37%) of shipments during the forecast period.

Why does this matter to online brands? Because the more options consumers have to engage with content (video and written), branded pages and websites the more opportunities have brands to create a loyal user base.

Recent data from a Zmags study found that many tablet users prefer shopping via sites than branded app. The key, though, is that they're shopping, comparing prices, looking for in-stock information and some are looking up local store locations. What are they looking for? Half (53%) report shopping for electronics, 41% for books, 39% for toys, 33% for music and 27% for clothing.

What's more tablet users aren't just teens or hipsters any longer. Half are women, most likely 40 or older, earning $63,000/year and an 'enthusiastic' shopper.

Tags: connected device shipments, ecommerce trends, m:commerce, mobile marketing, NPD In-Stat, tablet trends

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