Comparing Telly’s Ad-driven Free TV with TCL’s QM8 QLED TV

With its TV, Telly wants to change the way users pick TVs and engage with content, by making the TV free and serving ads to monetize its viewer base.
By signing up, users receive a 55-inch 4K HDR TV with two unique hardware additions – a soundbar and a second screen, used exclusively to serve ads and display other content.
Telly falls short in providing a holistic entertainment experience due to its reliance on third-party platforms for content delivery.

In the summer of 2023, a new company in the US announced a beta program for its smart TV platform, Telly. With its TV, the company wants to change the way users pick TVs and engage with content, by making the TV free and serving ads to monetize its viewer base. After participating in the beta program for over six months, a comparison with a traditional smart TV, TCL’s QM8 in this case, is warranted.

A new way to buy TV

At the core of Telly’s value proposition is the fact that users signing up for the beta program receive the TV for free at their homes. As part of the agreement between the user and the company, certain usage requirements are laid out, such as placing the TV in a prominent position in the main TV consumption area.

By signing up, users receive a 55-inch 4K HDR TV with two unique hardware additions. The Telly TV features a soundbar integrated below the screen. Below that, Telly integrates a second screen, used exclusively to serve ads and display other content, from weather and sports to games. The combination of the three hardware components turns Telly into a much taller TV than users might be accustomed to.

Image Source: Telly

Second screen – the key to everything Telly wants to achieve

The key to Telly’s value proposition is the second screen. Not only is it used to manage multiple inputs, but it also always displays additional, dynamic content – similar to widgets on smartphone home screens. Users can pick stock information, weather information, sports scores and news to display below the main screen. The selection process happens in the mobile app after signing in.

In addition to displaying information and ads, the second screen can also be used to play games, like Flappy Birds, while the main screen displays other content. Music apps can also be similarly integrated into the second screen, allowing users to listen to music while watching content on the main screen on mute. The versatility of content combinations enabled by the two screens sets the TV apart from traditional TV configurations.

Comparison with TCL’s QM8 QLED Google TV

Comparing a device like the Telly TV with other TVs is always going to be a slightly uneven comparison. After all, Telly is in beta and many software updates have been pushed to the device to enhance its usability and eliminate bugs.

However, it is important to use a comparison to illustrate where additional improvements are necessary for such a platform to succeed, and to highlight the advantages traditional smart TVs have. Here, we compare the Telly TV with TCL’s QM8 QLED Google TV, which utilizes its in-house display technology combined with third-party platforms, like Google TV.

1. Display quality and brightness

The Telly TV and TCL QM8 both offer impressive display quality, but the QM8 takes the lead. It gets significantly brighter in both HDR and SDR content, making it ideal for well-lit rooms. The QM8’s Mini LED backlight technology provides more dimming zones, resulting in less blooming around bright objects. Telly’s display performance is impacted by the second screen, which gives off a constant source of light, and while contextual dimming has improved since launch, it can still be distracting.

2. Color gamut and volume

When it comes to color, the QM8 wins again. It boasts a wider color gamut and color volume, delivering vibrant and accurate colors. Whether watching movies or playing games, the QM8’s color reproduction is excellent.

3. Local dimming and reflection handling

The QM8 outperforms the Telly TV in local dimming. Its local dimming feature has many more zones, ensuring better contrast and deeper blacks. The difference between panels is noticeable.

4. Unique features

Telly’s second-screen widget responsiveness has been frustrating. Information on the widgets is frequently delayed, like for sports scores. This sluggish responsiveness defeats one of the key benefits of having the second screen always visible. It is an area where Telly could improve through software updates or optimization to enhance the overall user experience.

While TCL’s TV lacks unique hardware, the display quality, viewing angles and integrated content platform present an overall harmonic experience by giving users integrated access to the Google TV ecosystem of apps.

Image Source: TCL

Overall Telly experience is underwhelming

Telly falls short in providing a holistic entertainment experience due to its reliance on third-party platforms for content delivery. Unlike TCL’s QM8, the Telly TV lacks its own content platform, necessitating users to rely on various third-party devices to access streaming services. Not only does this require multiple remote controls, as third-party integration is not yet available, but also creates a two-fold user interface – Telly’s and which content streaming device is being used.

All this can lead to a fragmented user experience, where accessing different content requires navigating through multiple apps or interfaces. Moreover, the absence of a unified content platform may limit the availability of certain titles or features compared to platforms like Google TV, which offer a comprehensive library of content and integrated services.

Furthermore, without its own content platform, Telly may face challenges in providing tailored recommendations or personalized content suggestions based on user preferences and viewing habits. Platforms like Google TV leverage advanced algorithms and AI to deliver customized recommendations, enhancing the overall viewing experience.

The integrated backlighting on the TV is a nice touch but provides little value as it is not adaptive to scenes on the screen and stays in one color. Again, the lack of streaming platform integration shows itself as a limitation.

The front-facing soundbar is also a mixed bag. Great, if the user doesn’t have a dedicated bar, but the sound isn’t great. Integrating an external speaker is, once again, a work in progress at best.

North America TV market outlook for 2024

Telly launched its beta program with the ambition of signing up 500,000 users. Counterpoint expects the North American smart TV market to grow 1% in 2024, from the 47 million smart TVs sold in 2023. A completely exhausted beta program would still relegate Telly to being a small part of the overall TV market. For its business model to be viable, Telly would need to grow its user base significantly to create a big enough pool for advertisers to take notice, in a market dominated by Samsung, TCL and LG and platforms like Roku and Google TV.

Conclusion

In essence, while the Telly TV offers unique features such as a second screen and streaming flexibility, its reliance on third-party platforms for content delivery diminishes the overall user experience. In contrast, the TCL QM8’s integration of Google TV ensures a seamless and comprehensive entertainment experience, making it a better option for users seeking convenience, accessibility and quality content delivery.

Telly, at this stage, is a device platform for the adventurous, first-mover user who is willing to grow with the platform and participate in changing features and providing ongoing feedback. Time will tell whether more users are comfortable accepting a constant stream of advertising to pay for a new TV.

Gaming Console Market Rebounded in 2023 as Supply Issues Subsided; Sony Took Top Spot From Nintendo

The global gaming console market witnessed a rebound in 2023 with 10% YoY growth.
Software revenue rose with increasing brand focus on content and other services.
Hardware revenue of the market is expected to decline in 2024.
The PS5’s popularity will keep Sony in the leading position in 2024.

The global gaming console market grew 10% YoY in 2023, primarily due to improvements in the supply chain constraints faced in 2022, rising consumer demand and new releases by Nintendo and Sony. Sony surpassed Nintendo to become the largest player in 2023, owing to the PS5’s popularity.

Market growth and brand share

The global gaming console market’s shipments are cyclical, wherein a pick-up in growth is observed after the launch of new-generation consoles. The latest generation of consoles, launched by Sony and Microsoft in 2020, drove the market up in 2021. Further, the COVID-19 pandemic supplemented the market’s growth because of the time people were forced to spend at home. 2022 witnessed supply chain constraints, which weakened in 2023, resulting in a market rebound.

Source: Global Smart Devices Shipments Tracker, Q1 2021-Q4 2023

Hardware updates expected in 2024

In 2024, Microsoft is expected to release the refreshed Xbox Series S and disc-less Series X series, with Wi-Fi 6E support in the second half of 2024. Nintendo, however, has delayed the release of Switch’s successor, again, till early 2025. This will negatively impact its market share. Sony is expected to lead the market again in 2024, driven by its popularity and weak competition. However, mid-cycle revenue is chiefly driven by software and content services.

Software and services revenue

According to our estimates, software and other services revenue constitutes the bulk of gaming console market revenues and is expected to increase further in the coming years. In 2023, software and other services revenue accounted for more than 70% of the entire gaming revenue for Sony and Microsoft.

Microsoft acquired leading video game developer Activision Blizzard in 2023 to expand its gaming portfolio with popular games like Call of Duty, Diablo and World of Warcraft. In October 2023, Sony released Marvel’s Spider-Man 2, which became the fastest-selling PlayStation game in the first 24 hours of its release. Sony also got a software revenue boost in 2023 from the success of games like Alan Wake 2 and Baldur’s Gate 3. Sony expects a gradual expansion of third-party software sales due to the expansion of PS5’s installed base and high user engagement.

Outlook

We expect a single-digit decline in the gaming console market in 2024. The competition will intensify with Microsoft’s portfolio refresh. Nintendo’s further delay in the Switch 2’s release will help Sony and Microsoft gain market share in 2024. Microsoft’s hardware upgrade with Wi-Fi 6E and storage expansion may also help the brand expand its market share. However, Microsoft’s release is expected in the second half of 2024, which will help Sony’s PS5 to maintain its shipment lead in 2024.

In the future, we expect brands to focus more on content and software services. Microsoft recently announced its Xbox Game Pass line-up and listed the games and their release dates in April 2024. On the other hand, Sony will mostly rely on high user engagement as it will not release any major game in 2024.

AI integration is going to be an integral step for the gaming industry’s future growth. Microsoft has already started working on an AI chatbox for Xbox, initially to help with support queries. Sony is also expected to enhance its upcoming PS5 Pro and PS6 devices with AI. AI upscaling is expected to enhance the quality of the content in the PS5 Pro. With the advancements and proliferation of AI across technology segments, its integration into the gaming industry is inevitable.

Global TV Shipments Fall 3% in 2023; China Drives Premium Segment Growth

The global TV market’s shipments fell 3% in 2023 to reach 223 million units.
The US market’s strength proved insufficient in offsetting the weakness in China and Europe.
Counterpoint Research has initiated global TV market coverage with its first joint shipment tracker with DSCC.
Premium TV shipments fell 1% during the year despite extremely strong growth in China.
The premium segment is expected to grow by mid-single digits in 2024 on recovery in the US and Europe.

Seoul, Beijing, Boston, Buenos Aires, Fort Collins, Hong Kong, London, New Delhi – February 27, 2024

Global TV shipments fell 3% in 2023 to reach 223 million units as the US market’s strength was not enough to offset market declines across China and Europe, according to Counterpoint Research’s Global TV Shipment Tracker. Samsung Electronics remained in the top spot while Chinese vendors Hisense and TCL grew by mid-single digits, riding the growth in North America.

Counterpoint Research has initiated coverage of global TV shipments with the Global TV Shipment Tracker, a quarterly report split by region, screen size, resolution, average selling price (ASP) and other parameters. This tracker comes in collaboration with DSCC, which Counterpoint acquired recently. DSCC is providing enhanced details on premium segments, including advanced display technologies across OLED (includes QD-OLED), Mini/Micro LED and quantum dot LCD.

“We are excited to roll out Counterpoint Research’s Global TV Shipment Tracker, a powerful tool to assess the market and technology trends as well as the competitive environment,” said Tom Kang, Director, Counterpoint Research. “As the first joint product of Counterpoint and DSCC, the tracker also shows how we are bringing additional value to clients, with the net result much greater than the sum of its parts.”

Source: Counterpoint Research Global TV Shipment Tracker
Note: Numbers may not add to 100% due to rounding

Premium TV shipments for the year decreased 1% annually but increased their market share to 10% helped by a surge in China, which saw its shipments and revenues growing 39% and 49%, respectively. A clear shift towards MiniLED LCD TVs by key Chinese OEMs, coupled with aggressive pricing and promotions, helped drive the segment domestically. The global premium TV segment is expected to grow by mid-single digits in 2024 on recovery in the US and Europe.

Source: Counterpoint Research Global TV Shipment Tracker

“We are expecting premium to do better this year on increasing screen sizes and ASPs,” said Calvin Lee, DSCC Senior Director, South Korea. “Recovery in the US and Europe will be a big factor but, as we are seeing in China, the right balance of features and pricing can be a big driver of replacement rates.”

Background

Counterpoint Technology Market Research is a global research firm specializing in products in the TMT (technology, media and telecom) industry. It services major technology and financial firms with a mix of monthly reports, customized projects and detailed analyses of the mobile and technology markets. Its key analysts are seasoned experts in the high-tech industry.

Follow Counterpoint Research

press(at)counterpointresearch.com

2.2 Billion IoT Connections Expected to be on eSIM by 2030

IoT eSIM connections are expected to grow 43% annually between 2023 and 2030.
New GSMA standards for IoT eSIM are expected to accelerate the adoption of eSIM in IoT as constrained devices benefit from new standards.
China lags in eSIM adoption despite being the largest IoT market in terms of connections.

Seoul, Beijing, Boston, Buenos Aires, Fort Collins, Hong Kong, London, New Delhi – Feb 20, 2024

IoT connections on eSIM are expected to grow at a rapid pace of 43% annually to reach 2.2 billion by 2030, according to a recent report released by Counterpoint Research on the IoT connectivity landscape. By 2030, almost a third of the IoT connections will be on eSIM or iSIM.

Commenting on the current state of IoT eSIM connections, Associate Director Mohit Agrawal said, “eSIM growth in IoT has lagged behind that in consumer space due to the restrictive M2M eSIM specifications. As a result, at the end of 2023, there were a little less than 200 million eSIM connections in the IoT space despite the excellent product-market fit.”

Agrawal added, “China, the world’s largest IoT market, has low single-digit eSIM penetration due to restrictive regulations around eSIM in the past and the high proportion of LPWA devices which currently do not support eSIM. The eSIM penetration in the rest of the world is much higher than in China but the large IoT base in China brings the overall global eSIM penetration to less than 10%.”

Commenting on the eSIM forecast, Senior Research Analyst Ankit Malhotra said, “The new GSMA standards for IoT eSIM (SGD.31/32) are expected to bring the eSIM to constrained devices, which is likely to massively push the growth in eSIM and later iSIM. eSIM vendors and IoT connectivity providers have multiple proof of concepts on the new IoT eSIM standards and the big push is likely to happen next year after the test specifications are released by GSMA later this year. The early adopters of eSIM in IoT have been mostly automotive customers as the enterprises have not really been able to change the connectivity provider at will”

The comprehensive and in-depth ‘IoT Connectivity Landscape’ report and the ‘Connectivity Management Platform Rankings’ report are now available. Please contact Counterpoint Research to gain access to the reports.

Background

Counterpoint Technology Market Research is a global research firm specializing in products in the TMT (technology, media and telecom) industry. It services major technology and financial firms with a mix of monthly reports, customized projects, and detailed analyses of the mobile and technology markets. Its key analysts are seasoned experts in the high-tech industry.

India Smart TV Shipments Declined 5% YoY in First Half of 2023

Shipments of smart TVs in the screen size range of 55” and above increased 18% YoY.
Smart TV contribution to overall TV shipments was over 91% in H1 2023.
Online channels contributed 39% of the overall shipments during the year.
Dolby Audio has become the de-facto audio technology for smart TVs.

New Delhi, Boston, Toronto, London, Hong Kong, Beijing, Taipei, Seoul – October 3, 2023

India’s smart TV shipments declined 5% YoY in H1 2023, according to the latest research from Counterpoint’s IoT Service. The decline was primarily due to the prevailing inflation and other macroeconomic headwinds in the country, which forced people to restrict their purchases to essential items.

Commenting on the market trends, Research Analyst Akash Jatwala said, “Many people bought their first smart TV during the COVID-19 pandemic, especially the 32” size. After experiencing the benefits of smart TV, they are now preferring bigger screen sizes for their living rooms, especially 43” and 55”. In H1 2023, the demand for bigger screen size smart TVs (55” and above) increased by 18% YoY. Further, consumers looking to upgrade their smart TVs will prefer a premium product due to the availability of better features.

Smart TV share in overall shipments reached its highest ever of 91% during the first half of 2023. This share is expected to go up further due to the increasing broadband penetration and the rising popularity of OTT platforms, among others.”

Source: India Smart TV Shipments Model Tracker, Q2 2023
Note: Xiaomi’s share includes Redmi’s share

Looking at the market dynamics, Senior Research Analyst Anshika Jain said, “The OTT services are helping in the growth of smart TVs due to the streaming of popular sports events, TV series, and movies, which creates stickiness among the consumers. Both OTT services and smart TVs offer a better viewing experience due to enhanced display technologies and the availability of features like Dolby Atmos and Dolby Vision.

While Dolby Audio surround sound has become the de facto audio technology for smart TVs, we are now seeing many smart TV SKUs also supporting both Dolby Atmos and Dolby Vision. Smart TVs with these features are now available in the price range starting from INR 20,000. With the upcoming festive season, rising consumer awareness, and broadcast of multiple sports events, especially the Cricket World Cup, on the OTT platforms, Dolby’s penetration is expected to increase further in the smart TV segment.”

QLED TVs are becoming popular in the mid-segment (INR 30,000-INR 50,000) as most of the brands are launching affordable QLED TVs with smaller screen sizes. QLED TV shipments increased more than 21% YoY in H1 2023 and their contribution in the overall smart TV sales is expected to rise further.

Market summary for H1 2023

Xiaomi continued to lead the smart TV market in H1 2023 with a 10% share. During this period, Xiaomi launched the X Pro series, Mi TV X series and Mi TV 5A Pro series.
Samsung took the second spot in the smart TV market in H1 2023. During the period, Samsung launched newer models in its QLED series and Crystal 4K series. Samsung also held a TV fest where it offered great deals on the S23 Ultra and The Freestyle projector and a soundbar with selected QLED and OLED models.
OnePlus was one of the fastest-growing brands and ranked third in H1 2023. The Y1S and Y1s Pro series were among its bestsellers. During the period, OnePlus launched QLED TV Q2 Pro.
LG took the fourth spot in the smart TV market in H1 2023. During this period, the company launched multiple OLED models, including a 97” model. LG also had multiple promotions, where it offered a free soundbar, additional warranty and cashback on selected models.
TCL ranked fifth in H1 2023 and was among the fastest-growing brands. During the period, TCL launched multiple new models, including in the 32” screen size, and held contests where it offered TCL products to the winners.
Acer (707%) and Sansui (148%) were also among the fastest-growing brands during the period. Both updated their portfolios and launched new models, which fetched good consumer response. With an increase in market share, Acer also entered the list of top-10 best-selling smart TV brands.
Incumbents such as Xiaomi and Samsung are facing competition in the market, as other players are expanding their reach, especially offline, and launching products at different price points with better features.
TV manufacturing is increasing in India with the increasing investments by OEMs in creating manufacturing capacity. Newer OEMs are also entering the market and partnering with leading brands to make their TVs.
Consumer demand is shifting towards premium TVs for bigger screen sizes and better features. But still, the INR 10,000-INR 20,000 price band captured the largest share of 37% in the overall smart TV market in H1 2023. The shipments for entry-level budget TVs (<INR 10,000) more than doubled as this segment caters mainly to first-time buyers.

We estimate that India’s smart TV market will see a decline of 7% YoY in 2023. The second half of the year will see an increase in smart TV shipments compared to the first half due to the festive season. We will continue to see the entry of new models and an increasing push towards the online channel. The market is likely to return to normalcy in 2024 and is expected to grow by around 10% YoY. The increasing preference for premium TVs will drive the overall market’s average selling price (ASP) higher.

Note: Xiaomi’s share includes Redmi’s share

Background

Counterpoint Research
press(at)counterpointresearch.com

India’s Smart Home Security Camera Shipments Up 48% YoY in Q1 2023

More than 75% of the cameras sold in Q1 2023 were below INR3,000, with INR1,500-INR2,000 most popular (28%).
Indian brands now command two-thirds of the Indian smart security camera market.
CP Plus, Xiaomi and EZVIZ ranked first, second and third, respectively, in Q1 2023.
Three of the top five best-selling models were from CP Plus

New Delhi, Beijing, Hong Kong, Boston, Toronto, London, Taipei, Seoul – June 14, 2023

India’s smart home security camera shipments grew 48% YoY in Q1 2023 (January-March), according to the latest research from Counterpoint’s Smart Home IoT Service. During the period, there was a strong increase in demand for home surveillance products as offices began reopening for working professionals. In Q1 2023, the average selling price of smart security cameras declined considerably YoY, with the INR1,500-INR 2,000 price range emerging as the most popular.

Commenting on the trend, Research Analyst Varun Gupta said, “Safety and security of homes have become a prime concern for most Indian households, which led to an increase in demand for smart security cameras and strong growth in shipments during the quarter. The industry has integrated AI into the devices to provide capabilities such as intrusion detection and motion detection, making household surroundings more secure. These functions have become more accessible in lower-cost cameras, driving overall demand. The shipment share of the INR1,500-INR2,000 price band jumped to 28% in Q1 2023 from 3% in Q1 2022. A decline in cost of components, especially those of memory and Wi-Fi chipsets, have led to a decline in the overall ASP.”

Note: Figures may not add up to 100% due to rounding

Gupta added, “The market remains consolidated. The top three brands took a combined market share of 67% in Q1 2023, with home-grown company CP Plus taking the top spot. Chinese brands, such as Xiaomi and EZVIZ, faced strong competition in the market due to the growth of existing and emerging players. TP-Link also launched smart cameras via its sub-brand Vigi to offer differentiated products to Small and Medium Businesses. Smart security cameras are becoming more popular among small retailers and enterprises due to their ease of use and minimal cost of ownership.”

Commenting on the overall market, Senior Research Analyst Anshika Jain said, “Indian brands now command nearly two-thirds of the Indian smart security camera market, with more than 60% of the products being manufactured in India. The market continues to perform well on online platforms and there has been a significant increase in the offline channels as well, with shipments exceeding 40% for the second consecutive quarter in Q1 2023. This indicates steady growth in the offline retail channels.”

Market Summary

CP Plus by Aditya Infotech cemented its leadership position with 3x YoY growth in shipments in Q1 2023, which helped it capture a 45% market share. It launched several cameras in Q1 2023, particularly in 3MP and 4MP sizes. CP Plus was the top domestic manufacturer of smart security cameras with a 71% share. It has focused on making its products more affordable to consumers mostly via the offline retail market.
Xiaomi ranked second with a 12% market share as its shipments fell 29% YoY in Q1 2023 mostly due to higher inventory levels and seasonal decline. Xiaomi’s Home Security Camera 2i was its best-selling model and second-best-selling camera model in the overall market.
EZVIZ by Hikvision ended Q1 2023 at the third spot with a 10% share. Its shipments declined 38% YoY due to the aggressive pricing by competitors. It has focused more on offering made-in-India cameras to consumers with the C6N as the brand’s best-selling model. EZVIZ offers a wide variety of products and primarily focuses on cameras priced at >INR3,000.
Tapo by TP-Link doubled its shipments YoY and captured the fourth spot with a 9% share. Although the brand has mostly focused on online retail channels, its visibility in the offline retail channels has also improved, especially in the large format stores. C210 was the brand’s bestseller in Q1 2023.
Qubo by Hero Electronix grew 19% YoY and climbed to the fifth position with a 5% market share. It has focused on offering affordable indoor cameras, especially in the INR2,000-INR2,500 price band, while also aiming to improve product visibility in the offline retail channels. The Smart Cam 360 indoor camera was the brand’s best-performing model.

Other Emerging Brands

Imou by Dahua Technologies fell 38% YoY mostly due to its lower popularity compared with other brands and poor visibility in the offline retail channels. Its Ranger series of cameras contributed to more than 60% of its total shipments.
Kent grew marginally YoY in Q1 2023. It has focused on offline and online retail channels and has been a trusted water purifier brand for several years. All its cameras are manufactured in India, and we expect Kent to add more cameras to its portfolio this year.
realme took a spot in the top 10 list in Q1 2023. However, it suffered an 18% YoY fall during the quarter, mostly due to a seasonal decline in demand for its cameras.
Airtel has been one of the latest entrants in this space and is the only brand to offer cloud storage as a service. It aims to build on its existing brand presence to penetrate tier-1 and tier-2 cities.
Zebronics grew significantly in Q1 2023 as it aims to offer affordable products to consumers and small retailers.

Background

Counterpoint Technology Market Research is a global research firm specializing in products in the TMT (technology, media, and telecom) industry. It services major technology and financial firms with a mix of monthly reports, customized projects, and detailed analyses of the mobile and technology markets. Its key analysts are seasoned experts in the high-tech industry.

Analyst Contacts

Varun Gupta

Anshika Jain

Folllow Counterpoint Research

press(at)counterpointresearch.com

India Smart Home Security Camera Shipments Grew 76% YoY in 2022; CP Plus on Top

The market’s shipments grew 49% YoY in Q4 2022 (October-December).
Shipments in the INR 2,500-INR 3,000 price band remained the highest in 2022, capturing 47% share.
CP Plus captured the top spot in 2022 with a 27% share as its shipments quadrupled YoY.
Xiaomi grew by 15% YoY to end 2022 in second position with a 19% share.
EZVIZ took the third spot with a 17% share and grew by 13% YoY.

New Delhi, Boston, Toronto, London, Hong Kong, Beijing, Taipei, Seoul – March 16, 2023

India’s smart home security camera market shipments grew 76% YoY in 2022 and 49% YoY in Q4 2022 (October-December), according to the latest research from Counterpoint’s Smart Home IoT Service. Throughout 2022, the market saw a boom in demand due to increased consumer awareness and aggressive pricing strategies of companies. Due to the holiday season and the introduction of several new models in the 2MP, 3MP and 4MP categories, the market increased by more than 66% YoY in H2 2022.

Research Analyst Varun Gupta said, “In a price-sensitive market such as India, the entry-level price point of smart cameras (INR 1,500 or ~$18) also creates a big demand pull. Shipments in the INR 2,500-INR 3,000 price band remained the highest in 2022, capturing 47% share. The discount offers around Diwali further pushed the sales in 2022. As safety remains a prime concern among consumers, the market is expected to perform well in 2023 as well. Smart cameras are gaining more popularity among small and medium retailers as they are less expensive and easy to install.”

Note: Figures may not add up to 100% due to rounding

Commenting from the brand perspective, Gupta said, “We expect the market to remain consolidated in 2023, even though the top three brands currently capture a combined share of 63%. We saw new brands entering the market in 2022, which increased the competition and brought down the average selling price (ASP). In terms of features, the 2MP camera remains popular among users, but we expect the 3MP camera to gain more traction as it is becoming more affordable. Though the market remains online driven (more than 60%), the offline market has started to gain traction in the past year through efforts from major brands, especially CP Plus which has a significant offline distribution channel.”

Looking at the market segmentation, Senior Research Analyst Anshika Jain said, “The indoor smart security camera accounted for more than 75% of the total shipments, mainly driven by increased awareness and importance of indoor home security. Even residential developers are increasingly installing smart camera devices due to the hybrid work model.

India Smart Home Security Camera market summary

CP Plus by Aditya Infotech led the market with a 27% share, with its shipments quadrupling YoY. The brand expanded its portfolio in H2 2022 with multiple launches in 2MP, 3MP and 4MP camera sizes for indoor and outdoor applications. CP Plus leads in terms of domestic manufacturing of smart cameras. The brand has focused on its strong offline distribution channel to offer cameras across India, coupled with aggressive pricing and bundled offers.
Xiaomi grew 15% YoY in 2022 to capture the second spot with a 19% share. It launched a new 3MP 2K camera in Q3 to offer a more premium experience to its customers.
EZVIZ by Hikvision fell to the third position with a 17% market share and 13% YoY growth. The brand experienced strong demand for its indoor and outdoor cameras. It offers a diverse portfolio and banks on its expertise and dominance in the surveillance market.
Tapo by TP-Link continued on its growth trajectory with an impressive 97% annual growth and a 10% market share. The brand dominated online marketplaces such as Amazon and Flipkart. Tapo’s growth can also be attributed to its diversified range of products, along with aggressive pricing. The C200 remained the brand’s bestseller smart camera in 2022.
Imou by Dahua Technologies was the second fastest-growing brand in 2022 with an 8% market share. Its Ranger series of cameras has been performing well on online platforms.
Qubo by Hero Electronix saw a 24% YoY rise in shipments in 2022 with a 7% market share. It was the second Indian brand among the top five players and has a focus on local manufacturing. Qubo performed well on online channels during the festive season. The Home Cam 360 Indoor camera was one of its bestsellers.

Other emerging brands

Kent grew by 19% YoY to end up in the top-10 list for 2022. The brand offers only two camera SKUs as of now, but it has performed well on online channels and is also present in offline retail stores. All the SKUs are being made in India. We expect the brand to expand its portfolio this year.
realme took a spot in the top-10 list for 2022 with a 38% YoY growth. It offers only one model as of now, but given its rising popularity as a brand, it is expected to offer more SKUs in the future to cater to different audiences.
Airtel entered the market in late Q3 2022 with a focus on providing its large broadband customer base with smart home products. It is the only brand to offer the devices through its channels only.
Zebronics experienced a decline of 32% YoY in 2022. The lack of consumer awareness around its offerings and its products not being updated with the latest features were the key reasons for this decline.

Background

Analyst Contacts

Varun Gupta

Anshika Jain

Counterpoint Research

press(at)counterpointresearch.com

Related Post

Key Consumer IoT Themes at CES 2023: Gaming, Entertainment, Wearables, Smart Devices

After two years of virtual presence, the annual Consumer Electronics Show (CES) was back in Las Vegas this month. Major consumer electronics and technology brands like Samsung, LG, Huawei and HTC participated in the event. The consumer IoT (CIoT) announcements at the event mainly revolved around gaming, high-quality display products, advanced audio processing technologies, smart security solutions, seamless connectivity (Matter), artificial intelligence (AI) and robotics. We have covered below some of the major CIoT announcements at CES 2022:

Gaming monitors by Samsung and LG

World’s first dual UHD gaming monitor by Samsung

Odyssey Neo G9 is the world’s first gaming monitor with a dual ultra-high-definition (UHD) resolution. It has a 1000R curved 57” screen with 7,680×2,160 resolution and a 32:9 aspect ratio.
The display is equipped with quantum micro-LED technology for a better visual experience.
It is supported by the world’s first DisplayPort 2.1, which is capable of transferring data at twice the speed of the previous version.
For a smooth gaming experience, it offers a 0.1ms response time and 240Hz refresh rate. It is equipped with OTT apps (Prime Video, Netflix and YouTube) and the Samsung Gaming Hub streaming platform.
With the new monitor lineup, Samsung is focusing on enhancing the immersive experience of gamers through superior quality visual display and better refresh rate.

Other notable launches by Samsung

ViewFinity S9 is the newest addition to its monitor lineup. It comes with a 5K 27” screen for the first time. It is specially designed for creative professionals such as graphic designers and photographers.
Smart Monitor M8 has been launched in two variants – 27” and 32” – with 4K resolution. The main highlights of the device are its slick design and focus on advanced security through Samsung Knox Vault.

LG’s latest flagship gaming monitor 32GQ950

This is LG’s first-ever 45-inch curved OLED gaming monitor which offers a 240Hz refresh rate and 0.03ms (GTG) response time for low-latency gaming applications.
It has an ultra-wide 21:9 aspect ratio and 800R curvature with a 3,440×1440 resolution.
It also sports an anti-glare and low reflection (AGLR) panel design to adjust the lighting in a bright room setting.
LG also quietly showcased a new gaming laptop (LG UltraGear 17G90Q) and UltraGear gaming speakers. With these new devices, it appears that LG is also shifting its focus toward gaming.

Lenovo tablet launch

Lenovo Tab Extreme

Lenovo Tab Extreme comes with a 14.5-inch OLED display and is also supported by Dolby Vision and HDR10+ to deliver superior quality while watching movies or series. It has eight speakers which are tuned by JBL.
It is equipped with a Dimensity 9000 chipset, 12 GB of RAM, 256 GB of internal storage, 12,300 mAh battery, 68W fast-charging support and Wi-Fi 6E connectivity.
The touch display can also be operated with the in-house Lenovo Precision Pen 3.
The device is mainly targeted towards the enterprise segment. It will be available in the second half of this year in the US market for $1,199. At this price point, it is mainly competing with Samsung’s Galaxy Tab S8 Ultra and Apple’s iPad Pro.

Interesting TV launches

World’s first smart TV metaverse experience

Source Digital (a data-driven engagement platform) and Sansar (a social VR platform) showcased their metaverse offerings and capabilities on a smart TV to find new ways of monetizing the digital experience of users. The companies formed a partnership in July last year.
Through their user-friendly application, users can immersively watch real-time events such as concerts and sports events in a 2D or 3D setup. It also allows consumers to interact and engage with other people and even purchase merchandise.
The Sansar app is available on webOS LG smart TVs. Users will benefit from a personalized content experience. Last year, Samsung also partnered with Nifty Gateway to develop the first-ever smart TV non-fungible token (NFT) platform.

Samsung introduces new Neo QLED, Micro LED and OLED TVs

The Neo QLED lineup is powered by the company’s advanced Neural Quantum Processor and comes in 4K and 8K variants. The TVs are equipped with a single chip module for built-in Matter, Thread and Zigbee for seamless connectivity.
Samsung also released its bezel-less MicroLED TVs in display sizes of 50, 63, 76, 89, 101, 114 and 140 inches.
Samsung’s 2023 OLED lineup is now available in 55, 65 and the new ultra-large 77 inches models with 144 Hz refresh rate. For the first time, these Samsung OLED TV models receive AMD’s FreeSync Premium Pro certification.
With these new devices, Samsung is aiming to enhance the viewing experience with better picture quality and offering a multi-device compatibility feature which is mostly absent in premium devices.
To deliver a smooth connected device experience, this time, SmartThings syncs not just with Samsung devices but also with third-party appliances and other IoT devices. Samsung has also integrated features like Chat Together (real-time chat), ConnecTime (video calls), 3D Map View and Samsung Gaming Hub to drive user engagement.

Skyworth showcases world’s first outdoor Google TV

The new model S1 is equipped with eight speakers and is supported by Dolby Atmos and HDR10 for an enhanced audio-visual experience.
The brand is focusing on providing high peak brightness and introducing high contrast to upgrade the product experience in its new smart TV.
In addition to S1, the brand also released the W82 Transformable OLED TV, Q52 Mini LED TV, G3B QLED+ TV, and the Coolita OS smart TV system.

LG releases world’s first wireless OLED TV

LG Signature OLED M (model M3) TV is the world’s first 97-inch wireless TV that comes with an OLED display. LG is setting the benchmark for innovation with this new device.
The device supports content at 4K 120Hz and uses the company’s Zero Connect technology which is a wireless solution for the transmission of video and audio in real time.
This model also won the CES 2023 Innovation Award in two categories.

New smartwatches and TWS models from leading brands

Citizen releases Smart Sport and CZ Smart Casual

The claimed unique thing about these wearable devices is that they come with a built-in self-care advisor which offers personalized recommendations to create better routine habits.
Both these devices are supported by Google WearOS and the key differentiating factor is the case size and design.
These smartwatches are equipped with a heart rate sensor, SPO2, 1GB RAM, 8GB storage, built-in speaker, NFC and fast-charging support. Prices range from $350 to $435. These smartwatches will be available in the US from March 2023.

Fossil Gen 6 Hybrid Wellness Edition

The watch has mechanical hands that function like a vintage watch and a digital display that can be used to track health-related features and get weather-related updates.
This smartwatch is specifically designed for mechanical watch lovers and will be available at a price point of $299.

Verizon’s Gizmo Watch 3 for kids

This smartwatch comes in two attractive colors – blue clay and mint – and is specifically designed for kids to track their location for safety purposes.
It is priced at $149 and is capable of recording videos, along with the ability to send and receive messages and phone calls. It has built-in cellular connectivity.
Verizon is also offering $100 discount on the second Gizmo Watch 3 purchase for families with multiple kids.

Motorola launches new ANC earbuds: Moto Buds 600

It is the latest audio offering by the brand that comes at a price of $149.99.
The device is equipped with fast pair technology and comes with Bluetooth multi-point technology which allows the buds to be connected to two different devices simultaneously.
The device also supports Google Assistant and Wireless Charging.

JBL announces JBL Tour Pro 2 wireless earbuds

It offers the world’s first smart charging case. These earbuds come with a touchscreen on the charging case to quickly access the volume buttons, manage music, receive calls and receive social media notifications in real time without referring to an app or smartphone.
These earbuds will be available in the US for $249.95.

boAt showcases advanced audio products

boAt has partnered with tech firms such as Dolby, Dirac, Mimi and CEVA to showcase its advanced range of audio products.
boAt showcased its new Rockerz 330/333 ANC neckbands which are powered by Dirac Opteo technology.
Some of the other products launched in partnership with Dirac include the Rockerz Apex neckband, Nirvana Nebula, Airdopes Synth TWS and Nirvana 525 ANC neckband.
These new products are aimed at providing personalized audio offerings to enhance the user experience.
All the new TWS devices aim at improving the listening experience along with the diffusion of fast-charging capabilities so that they can be used for a longer duration.

Smart security products by Amazon

Amazon expanded its Ring product lineup with a new dashcam ‘Ring Car Cam’ and video doorbell ‘Ring Peephole Cam’

Ring Car Came comes with a dual-facing camera for interior and exterior view recording from the vehicle. It is also equipped with smart sensors to detect events around the vehicle. It is available for preorders at $199.99.
Ring Peehole Cam is a video doorbell that is equipped with a 1080p HD camera and motion detectors for smart security. It is now available in the US for $129.99.

Other notable smart device launches

Ring showcased a first view of its smart home security drone. It is a mini-drone that can be used as a flying security camera to spy on unusual activities at home.
Shelly, a division of Allterco Robotics, introduced eight new smart home products. The main products include a smoke alarm detector, energy meter, Android wall panel, door/window sensor, smart logs, and a Bluetooth device that can control all other smart home devices. The aim is to make these devices affordable for a large group of people.
Smartsound unveiled the world’s first AI-based smart stethoscope series under the names Skeeper R1, H1 and P1. These stethoscopes are designed to identify and monitor heart and lung sounds for remote medical treatment and home care.
Smart appliances by Samsung
- Bespoke AI Oven: This smart oven is equipped with a ‘Sense Inside’ feature which can recognize up to 80 different dishes through an AI-based image recognition system, thus offering greater convenience and helping avoid overcooking of the food. It is the first AI food recognition algorithm that has received verification from UL solutions. It is currently available in Europe and will be available for sale in North America in Q3 2023.
- Bespoke 4-door Flex refrigerator comes with a massive 32-inch touchscreen: It comes with a four-door design, and a very large display to control all other smart home devices, play music, watch videos and do grocery shopping through the SmartThings app.
- Bespoke washer and dryer pair that use AI to optimize temperature settings and determine the ideal amount of detergent for each load.
Roborock refreshed its S8 series of robot vacuums: The top model in the refreshed series is the Roborock S8 Pro Ultra which has a 6kPa suction power as compared to 5.1kPa offered in the previous version. The new series focuses on enhancing cleaning efficiency through advanced features. The price of the Roborock series starts from $749.
Withings U-Scan urine analyzer: It is a Wi-Fi-connected device that is placed inside the toilet to analyze urine. It helps in providing nutrition and hydration information along with information on women’s menstrual health.

Conclusion

Most of the smart TV players focused on delivering superior quality and fast-gaming experience through bigger-size, high-quality OLED displays and better refresh rates. This time, the focus was also on multi-device connectivity features along with Matter support. Most of the technology companies focused on improving the customer experience.

In the wearables segment, the emphasis continued to be on health-related aspects and fast-charging support. Another important area that gained traction was smart security solutions due to the need for child and elderly care and to serve the needs of working professionals.

The CIoT market holds tremendous potential to grow in the coming period owing to an increased focus on affordability and integration of the latest tech innovations.

GlobalFoundries Reports Strong Q3 2022; Home, Industrial IoT to be Fastest-growing End Market in 2022

GlobalFoundries has reported strong Q3 2022 numbers with its revenue growing 22% YoY to $2.074 billion, driven by an increase in wafer shipments, richer mix of products and rise in average selling price (ASP).

The company’s focus on high-growth megatrends in the automotive and industrial segment, along with its enabling specialty semiconductor manufacturing capabilities and advancing innovation and production of next-generation GaN chips, will further aid in broadening GlobalFoundries’ portfolio of feature-rich and enablement solutions and maximize revenue in the long term.

Q3 KPIs

Net revenue was $2.074 billion, better than the guidance provided in the previous quarter.
Shipped approximately 637,300-mm equivalent wafers in kilo units, a 5% increase YoY.
Wafer revenue from end markets accounted for around 90% of total revenue.
Adjusted gross margin stood at 29.9%, a 12%-point YoY improvement driven by better fixed cost absorption, higher ASPs and improved mix.
Wafer ASP was $2,925, an increase of 14% YoY, driven by ramping up of long-term customer agreements with better pricing as well as continued improvement in product mix.
The total value of long-term agreements was above $27 billion. The amount of committed prepays increased 6% from a quarter ago, to approximately $3.8 billion.
Expect the full-year 2022 total gross capex to be between $3 billion and $3.3 billion, impacted primarily by delays in capital equipment.
Modest guidance of $2.05 billion-$2.1 billion provided for Q4 2022. 300-mm fabs fully utilized but a reduction in capacity utilization, particularly with respect to 200-mm fabs, going ahead.

Source: GlobalFoundries Earnings, Counterpoint Research

Segment-wise details: Home and industrial IoT to be the fastest-growing end market in 2022.

Source: GlobalFoundries Earnings, Counterpoint Research

Q3 key announcements and analysis

Received $30 million in US federal funding to advance the development and production of next-generation semiconductors at its Essex junction, Vermont, facility.
- Funding will be utilized towards the development and production of GaN chips used in improving the performance and efficiency of applications including 5G smartphones, RF wireless infrastructure, electric vehicles, power grids and other technologies.
- The addition of scaled GaN manufacturing to the fab’s capabilities will further boost GlobalFoundries’ leadership competencies in making chips for RF semiconductor technology and high-power applications.
Completed five technology qualifications, including a 12-nm LP customer-specific technology covered under a five-year agreement.
A proprietary automotive 40-nanometer embedded non-volatile memory product from GlobalFoundries has qualified for one of the largest automotive MCU suppliers in the industry.
Tapped out five new customer products on silicon photonics platform, including a photo IC device and fully monolithic co-packaged optics for GPU-to-GPU 2 terabit optical interconnect.
Successfully produced a high-performance RF GaN device through a silicon via technology solution to optimize power amplifier output and efficiency.
Sampled GaN power devices to early engagement customers.

Key takeaways

Despite the ongoing inventory correction in handsets, RF front-end modules performed well. We can expect mid-teens full-year growth in the premium segment to offset declines in the low- and mid-range segments.
Home and industrial IoT to be the fastest-growing end market for GlobalFoundries in 2022.
Focus on high-growth megatrends in automotive and industrial segment with its enabling specialty semiconductor manufacturing capabilities will further boost GlobalFoundries’ leadership competencies and maximize revenue in the long term.

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India Smart Home Security Camera market summary

Other emerging brands

Gaming monitors by Samsung and LG

World’s first dual UHD gaming monitor by Samsung

Other notable launches by Samsung

LG’s latest flagship gaming monitor 32GQ950

Lenovo tablet launch

Lenovo Tab Extreme

Interesting TV launches

World’s first smart TV metaverse experience

Samsung introduces new Neo QLED, Micro LED and OLED TVs

Skyworth showcases world’s first outdoor Google TV

LG releases world’s first wireless OLED TV

New smartwatches and TWS models from leading brands

Citizen releases Smart Sport and CZ Smart Casual

Fossil Gen 6 Hybrid Wellness Edition

Verizon’s Gizmo Watch 3 for kids

Motorola launches new ANC earbuds: Moto Buds 600

JBL announces JBL Tour Pro 2 wireless earbuds

boAt showcases advanced audio products

Smart security products by Amazon

Other notable smart device launches

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