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This quarter’s Digital Dollar report features a deep-dive into the growth and trend in smart products includ- ing TVs, watches, and speakers. Smart TV’s growth is unapparelled by any other smart home product today, evidenced by the fact that nine out every ten TVs sold in the first quarter of 2018 were smart TVs. In the last two years, we have seen the smart TV reach full maturity as almost every TV bought today is a smart TV. These TVs are Wi-Fi enabled or have built in Chromecast, Roku, Firestick, or other streaming devices. Driving the evolution of the smart TV is the increasing importance of home entertainment systems: we’re starting to see streaming services and video games deliver 4K content. In addition, consumers are seeking out higher resolution TVs with larger screen sizes, two TV features that have enabled consumers to have a better at-home viewing experience. We see a trend towards larger screen sizes. In fact, more than half of TV’s sold in the first quarter of 2018 had screens larger than 45 inches. Also, in Q1 2018, resolution of TV sales is predominantly 4K, while 1080p re- mains on the decline. And bigger is typically better: three out of every four TVs sold with a screen size above 45 inches has 4K resolution while only half of TVs with screen size under 46 inches are 4K. DIGITAL DOLLAR: RETAIL AND ECONOMICS UPDATE 2018Q1

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