September 2005

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New gadgets entering the majority of homes in half the time, compared to 1970s

NEW GADGETS ENTERING THE MAJORITY OF HOMES IN HALF THE TIME, COMPARED TO 1970s

- Gadgets today are becoming mass-market in almost half the time they did a few decades ago, according to the MORE TH>N Home Contents Index.
- Huge fall in cost of electrical items and rise in disposable income mean consumers can get more technology for the same money.
- 22% of young people own an iPod and 68% own a digital camera.1

Plummeting costs and rising wealth in the UK have led to electrical items becoming mass market in half the time they did 20 or 30 years ago, according to the MORE TH>N Home Contents Index.

It took 15 years for 85% of UK households to have a colour television and 20 years for 89% of households to get a video recorder.2 Today’s favourite gadgets are entering most homes much quicker: 80% of people now own a DVD, just ten years since they were first produced, and already 10% have iPods just four years after launch. The average Briton today owns gadgets worth £4,6001 as they fill their homes with the latest plasma screens, DVD players, MP3 players and digital cameras.

Disposable income increased by more than 78.3% between 1987 and 2004 while the price of Audio-Visual Equipment fell by 76.1% in the same period. This has made like-for like audio-visual equipment more affordable, while technological advances mean consumers are often able to upgrade when they make new purchases.

 In 1970 a colour TV cost just under £200 – 1.5% of gross household income.
 In 2004/5 an average standard 20″ colour TV is £150 – 0.5% of household income.

Electrical Item Launched Ownership Length of time since launch
Then
Colour Television 1970 2002 (owned by 99% of households) 32 years
Video Player 1978 2002 (owned by 89% of households) 24 years
Home PC 1980 2002 (owned by 54% of households) 22 years
Recent
DVD Player 1995 2005 (owned by 80% of people) 10 years
Digital camera 1995 2005 (owned by 52% of people) 10 years
Now
Plasma TV 1995 2005 (owned by 10% of people) 10 years
Videophone 2005 (owned by 25% of people) 3 years
iPod 2001 2005 (owned by 10% of people) 4 years

David Pitt, Head of Insurance at MORE TH>N comments: “Our research has found that young Brits are driving the revolution in spending on technology, with the average 16-24 year old owning over £5,000 worth of gadgets, such as games consoles, video phones, MP3 players and digital cameras. As the majority of this group may be in full time education or living with their parents it could be that ‘pester power’ has come into force, with parents having to fork out for expensive goods.”

Nearly half (45%) of under 24 year olds will buy the latest gadget as soon as it comes out or when they can afford it: 20% of young people own an iPod and 68% own a digital camera. Young Londoners lead the way with almost twice the national average owning videophones (48%), plasma televisions (24%) and iPods (29%).

Pitt continues, “As this research highlights there is a proliferation of small but high value gadgets in the home now, which means a thief can easily grab lots of small items, taking more value then they used to steal. It is important to ensure you have enough insurance cover for these items both in the home and when you are carrying them around. ”

MORE TH>N provides peace of mind with £60,000 automatic cover for home contents so that customers are not left underinsured. Personal possessions cover can also be added on for an average of £30 per annum so that the items carried around on a daily basis will be covered against loss and theft.

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