Providing Market Intelligence for 40 Years

In The News

Parks Associates: Smart Home Players Look to Overcome Consumer Price Sensitivity

Parks Associates smart home research finds high perceived prices remain a top barrier to smart home adoption, with providers and manufacturers working to bring lower priced products to market and discontinue specific premium products.

“Perception of high prices is a key barrier to smart home device adoption, but it is also tied to the perception among non-owners that smart home devices do not offer any benefits to the lifestyle,” Patrice Samuels, senior analyst, Parks Associates. “Device manufacturers in the smart home market are evaluating multiple strategies to address the leading adoption barriers. Companies are betting that getting one device in the home, even as a loss leader, will convince consumers of the value of smart home devices and inspire future purchases. Our research indicates this is a sound strategy.”

Parks Associates notes that households that own at least one smart home device have an average of seven devices. Companies such as Eufy are offering lower priced models that retain most of the features of their higher-priced models, knowing there is a good chance that their customers will buy more products following this initial purchase.

The Smart Home Tracker, a quarterly service from Parks Associates, also finds that as new social distancing guidelines continue to impact schools and businesses, a number of tech giants – including Facebook and Google – are incorporating video conferencing solutions into their products and systems. The percentage of U.S. broadband households that report using video services is 54 percent higher than prior to the pandemic.

“One of the leading and overarching value propositions of smart home products is to improve convenience for users,” Samuels said. “Services like Zoom have become invaluable. Helping users to make video calls more conveniently increases the value of smart home devices in these times, and we expect to see additional integration around solutions like these.”

From the article "Parks Associates: Smart Home Players Look to Overcome Consumer Price Sensitivity" by Residential Tech Today.

Previously In The News

Where Will Streaming Subscription Budgets Come From?

The streaming video industry isn't quite the same as streaming music. But as more content becomes available on streaming platforms, the less content people will take from digital downloads. Here's...

The World Just Moved One Step Closer To Cord-Cutter Utopia

That leaves local broadcast TV. Access to NBC, ABC, and all the rest remains the biggest impediment to cutting the cord for good. Parks Associates recently found that 55 percent of cable subscribers s...

Netflix Is Killing It—Big Time—After Pouring Cash Into Original Shows

“There seemed to be an attitude around the industry that after House of Cards and Orange is the New Black, there was no way Netflix could catch lightning in a bottle again,” says Glenn Hower, a senior...

Roku Bolsters Its Strongest Business With a $150 Million Acquisition

The bears once believed Roku's hardware business would be crushed by rivals like Alphabet's Google Chromecast, Amazon's (NASDAQ:AMZN) Fire TV, and Apple TV. Yet Roku consistently remains the most popu...

Phone:
972-490-1113
Mailing Address:
2301 West Plano Parkway, Suite 210, Plano, TX 75075
Expertise
Smart Home: Management and Safety Consumer Electronics Connected Health and Wellness Broadband Small-to-medium Business (SMB) Connected Health
Services
Research Services: Custom and Consulting Research Projects Streaming Video Tracker Security Tracker Smart Home Tracker
Events
CONNECTIONS™ CONNECTIONS™ Summit/CES Smart Energy Summit Connected Health Summit Future Of Video Smart Spaces Upcoming Industry Events
Resources
Press Releases Analyst Blog Parks in the News Connected Consumer Podcast 
About Us
Overview Team Contact Us
Store
View Your Cart

Follow Us to stay informed

© 2023-2026 Parks Associates. All Rights Reserved. Privacy Policy

Design & Developed By Agency Partner Interactive