Consumer Electronics Diversify in a Global Market
 By Earle Durham, Bishop & Associates Inc.

A new decade of innovation launched at the 2010 International Consumer Electronics Show (CES) in Las Vegas on January 7, 2010. More than 2,500 technology companies introduced over 20,000 new products to an audience of more than 120,000 industry professionals, up from 113,000 attendees in 2009. The crowd included 5,000 reporters, analysts, and bloggers, generating significant global media coverage and communicating news of the future to the buying public beyond.

Months earlier, at Supercomm 2009, the telecom/datacom industry reinforced the need to build an infrastructure that would meet consumer expectations to connect anywhere, anytime, through the device of their choice, to anything wanted. And oh, by the way, if it’s not easy, reliable, secure, and affordable, then consumers will find a better way. But the presentations at 2010 CES left no doubt that the consumer electronics industry is stepping up to the challenge.

During the keynote address, Microsoft CEO Steve Ballmer said, “From the largest screen on the wall to the smallest screens in people’s pockets, we are delivering the entertainment people want.”

Major Show Take-Aways

Wireless is Everywhere
Mobile phones, smartphones, lightweight barebones laptops (referred to as netbooks or ultraportables), slate or tablets, traditional laptops, custom application products, like GPS systems, and even WiFi SD cards for digital cameras were among some of the products featured. Beyond the portable gadgets, embedded wireless systems in home security, lighting and energy systems, and healthcare made the show. So, what are the trends?
 

 

 

While Apple wasn’t present at CES, there was little doubt that the entire industry has taken notice of the market interest in the iPhone. With over 30 million iPhones sold to date, and a forecast for 10 million this quarter, it’s little wonder other companies are taking notice. Apple has not only captured a large share of revenue, they have also taken an even larger share of profit dollars by focusing on the high-end smartphones.

  • Most of the smartphone manufacturers were introducing new phones on the Android platform, which allows developers to offer many of the applications and features available for the iPhone.

  • Touch-screen technology is everywhere, and not just on handheld devices.

  • Android, Blackberry, Windows Mobile, and all the other mobile operating systems are playing catch-up to the more than 100,000 iPhone applications.

Google’s move to directly retail HTC’s Nexus One smartphone certainly had all the service providers and retailers buzzing.

Mobile features, such as Google Maps, offer full voice navigation on Android-equipped phones, and various levels of map services on other phones. Google Maps for mobile competes quite nicely against the traditional handheld GPS systems.

3G systems are the current standard offering from phone providers, but there was a lot of buzz around 4G systems, both WiMax and LTE. It’s clear that consumers want the speed.

Globally, carriers are developing plans and the infrastructure to build out their 4G networks. For example: Clearwire has invested over $7.5 billion to build out their WiMax infrastructure, and recently received $2.8 billion in new investment to move ahead with plans to cover 120 million POPs by the end of the year, up from 30 million. As part of that action, the carrier plans to add major new markets, including New York City and the San Francisco Bay Area.

As smartphones migrate into mini-laptops, the traditional laptop providers are also migrating into the smartphone space. For example, Lenovo's Android-powered smartphone, bound for China, signals the entrance of yet another computer manufacturer into the smartphone game.

While Apple, Android, and Google may have been in the public’s mind—and pockets—Nokia, with approximately 38 percent global market share, expects to ship over 500 million units in 2010. Rick Simonson, head of Nokia's mobile phones unit, said in an interview with the Economic Times of India that the company's reliance on three platforms, Mameo, Symbian, and its own proprietary platform, would pay off.

Intel and Microsoft continue to be key enablers of technologies with Intel’s Atom processor and Microsoft’s Windows 7 platforms, making the smaller, lighter ultraportables practical, easy to use, and equipped with a battery that will last all day.

Not Your Parent’s Televisions
 Panasonic, Sony, Samsung, LG, and Toshiba all announced 3D-compatible high-definition TVs (HDTV) at CES, with Panasonic walking away with the CES award for best in show. It will be interesting to see the adoption rate of 3D-compatible HDTVs, given the current growth of HDTVs.

Consumer-electronics giants LG Electronics and Panasonic have entered into partnerships with Skype to bring the online videophone service to television screens. LG and Panasonic hope to begin shipping web-enabled TVs with Skype technology on board by the middle of the year. Many Internet Protocol televisions (IPTV) could be seen at the show, although most manufacturers were limiting the Internet capabilities to server-provided applications like Skype, social networking sites, etc., vs. enabling full browsing capabilities. 

 

Connector Technology Trends
Wireless, wireless everywhere. From WiFi to battery chargers to Bluetooth, everyone wants to go cordless. However, all of these devices continue to contain an extensive array of connectors. You have to love an industry that grows in content with the very same devices that are touted as your demise.

Standardization—Consumers want true plug-and-play capabilities, and USB (standard, mini, and micro) SSD cards and HDMI are the clear winners.

Most of the smartphones and ultraportables utilize very similar I/O connectors:

·         USB and/or mini-USB

·         Memory Card

·         Power, generally mini-USB on smartphones, seemed to be a mixture on ultraportables

·         Microphone/earphone connections

·         Many with HDMI

·         A few of the larger ultraportables had D-Sub monitor cable connectors

Internally, all have:

·         Battery connectors

·         Connections to displays

·         Custom board-to-board connectors

·         Ultra portables generally had IC sockets

·         Although many have flash drives, some are utilizing 3.5-inch SATA drives.

2010 is shaping up to be a very interesting year for the telecom/datacom market as the consumer electronics manufacturers rush to meet the ever-growing expectations of consumers and the service providers race to build out the infrastructure to keep these devices running at their full potential. Over the last few months, we have all heard Verizon and AT&T discuss who has the best 3G network. It won’t be long until those advertisements are edited to say the best 4G network!

Earle Durham
Market Director—Telecom/Datacom, Bishop & Associates Inc.
 Earle Durham has been in the connector industry for nearly 30 years. Earle began his career as a plating engineer at DuPont’s Berg Electronics Connector division. In 1986, Earle transferred to sales and marketing. In 2003, he was promoted to director of sales and marketing at FCI Electronics, Americas, and was in that role until he joined Belden Americas in 2007 as their vice president of sales and marketing. In 2009, he founded his own sales management consulting business, Earle Durham & Associates LLC, and has recently joined Bishop & Associates Inc.
Earle graduated in 1980 from Rutgers University with a bachelor of science degree in chemical engineering.


 
 
 

Bishop & Associates, Inc. © 2010