REPORT ON THE 2006 CONSUMER
ELECTRONICS SHOW IN LAS VEGAS
TechSnapshot: A Review of the 2006
International Consumer Electronics Show Review
Once again this year, Frank Gorman and Mike Yang
attended the Consumer Electronics Show (CES), the world’s largest
consumer electronics trade show held yearly in Las Vegas. CES is
put on by the Consumer Electronics Association, the principal consumer
electronics industry advocacy organization, and brings together
thousands of exhibitors from all over the world.
Frank and Mike have been attending CES together for
a number of years and every year try to spot trends in emerging and
developing technologies in consumer electronics as well as technologies
that are evolving over the years. While no one can easily
summarize everything that goes on at the show over the course of four
days, here are some interesting snapshots and highlights of the 2006
CES:
Keynote
Addresses.
-- Among other things, Bill Gates promoted Microsoft’s new Vista
operating system which will be released in late 2006 as the replacement
for Windows XP. The user interface on Vista will be different and
the ability to search for data will be improved. Other Microsoft
software (including Office and Internet Explorer) will also be
improved, with added functionality and features. Vista will
support HD-DVD discs.
-- Sony’s Chairman, Sir Howard Stringer, emphasized the
importance of entertainment and as well as technology by bringing
along, among others, Dan Brown, Tom Hanks, Ron Howard, and Brian Grazer
to promote the upcoming theatrical release of “The DaVinci Code.”
While showing off some of Sony’s new lineup of electronic devices,
including its new Portable Reader System and portable functionality of
devices such as the PSP, Stringer’s also made the point that media
owners (including Hollywood) and electronics hardware manufacturers
need to find common ground on copyright ownership protection because
consumers want to be have content on demand, wherever and whenever they
want. Stringer also emphasized the importance and value of
high-definition (HD) content and promoted Sony’s emerging Blu-Ray disc
format.
-- Paul Otellini, chairman of Intel, gave a keynote in which he
promoted Intel as the “new normal.” In addition to showing off
Intel’s new look (including its new logo and new slogan), he also
showcased Intel’s re-branded chip line with the launch of the new Core
Duo and Viiv platforms. Otellini made clear that Intel has
designs on expanding into many areas of consumer electronics, but that
it also had an interest in content, bringing such Hollywood stars as
Tom Hanks, Danny DeVito, and Morgan Freeman onstage to promote
ClickStar, a joint venture which aims to bring Hollywood releases to
the PC at the same time they are released in the theaters. A much
different presentation than former-CEO Craig Barrett’s keynote
presentation of a few years ago which focused on Intel’s dominance in
the computer world, Otellini’s vision of the future has an Intel chip
in every electronics device as his presentation was much more balanced,
with actors and entertainers balancing out an appearance by Michael
Dell.
HD.
Once again, high definition is a buzzword, though now it has spread to
more than just televisions. High definition recording,
transmission, display, content, and media are all still hot, and the
fight over HD standards is still brewing. We still saw evidence
of the competing next-generation HD disc standards (HD DVD vs.
Blu-Ray), though Blu-Ray (or “BD” as the media discs are called) seemed
to have a much stronger presence, largely thanks to the fact that it
had its own booth. Most (if not all) major display manufacturers
were showing off the latest in HD hardware, with some showing off some
hardware that most people not giving keynotes speeches at CES can
hardly afford, including Samsung’s 105” plasma display and 1,000,000:1
contrast ratio display. Some vendors were already talking about
next generation HD, with resolution 2 to 4 times better than the
current high-quality (1080i) HD.
Divergence.
A few years ago, convergence devices were hot: combining digital music
and digital camera functionality into devices that previously did not
have (or probably need) such functionality, combining video and audio
viewing functionality into devices, etc. Now, it seems that many
companies themselves are branching out and diverging from their
traditional markets into consumer electronics more broadly. As
evidenced by HPs introduction of a new line of high definition
televisions, Dell’s introduction of more and more non-computer-related
electronics, and Intel’s strategy of providing chips and
microprocessors to devices other than PCs (including Apple computers,
handheld devices, and more), it seems that many companies are trying to
leverage their existing market power in one area and move into another
area of the electronics world. Whether these strategies pay off
remains to be seen, but they should at least provide consumers with
more choices (and hopefully better choices) in the years to come.
VoIP.
The ubiquity of broadband connections and WiFi access has accelerated
the acceptance of making telephone calls using the internet.
Voice over Internet Protocol (VoIP) telephony permits voice to be sent
as computer data over the Internet, much like modems permit computers
to send text and data over standard telephone lines. Many vendors
were heavily promoting their VoIP services and hardware, including
Skype, one of the larger players in the VoIP field. With Skype,
much like with many other VoIP services, a free software program can be
installed on each accessing computer to permit free, unlimited voice
transmission, provided that callers on each end are equipped with an
Internet-connected computer, a speaker, and a microphone. Skype
users can then entirely avoid the traditional long distance charges
from standard long distance carriers, and calls to non-Skype users are
charged at very low rates (around 2 cents per minute). Rates
varied among VoIP vendors, but the rates were typically significantly
less than traditional telephone companies. Other vendors were
demonstrating devices which made the VoIP experience more like a
regular telephone experience, with telephone handsets that looked more
like traditional telephones but which utilized VoIP, therefore
permitting a caller to use a “regular” phone instead of a computer
headset. Some of these devices simply needed to be plugged into a
broadband connection to function, while others were made to be
compatible with their own vendor’s service (e.g., Skype, NetZero Voice,
etc.).
The
next-generation HD disc format battle. Two different
formats have been developed for use with next-generation media discs
(to replace DVDs) which are capable of handling increased amounts of
digital content and offering increased versatility. These new
discs utilize new technology to allow data volumes of up to 200
gigabytes for Blu-Ray (“BD”) (roughly 50 times higher than a standard
DVD) and 60 gigabytes for HD-DVD. Sony, Panasonic, and other
major players (including a number of Hollywood studios) are using and
promoting BD, while companies such as Toshiba, Microsoft, and others
are backing the HD-DVD format. These technologies also typically
feature high data transfer rates and are, of course, made to handle HD
content.
This format battle, of course, causes heartburn for
retailers (and potentially consumers). If manufacturers are not
able to agree on a single format standard, next generation players,
recorders, and blank media are just a few of the consumer products that
will be come in both BD and HD-DVD, and retailers will have to answers
consumers’ questions as to which format is best and which they should
buy. While it is possible to purchase a BD recorder/player
(Pioneer, Sony, and Panasonic announced new BD drives at CES), this is
a market that is expected to blossom in the next few years,
particularly as HD televisions become increasingly more common in
households. It will be interesting to see if the manufacturers
are able to come to agreement or if we will be faced with another VHS
vs. Betamax situation.
Digital
Television Transition. In the next three years there will
be a major shift in how television, as we know it today, will be
broadcast. The U.S. government is in the process of ending all
analog television broadcasts in the United States, which provides the
current conventional means through which households, without cable or
satellite subscriptions, view television. The Digital Television
Transition and Public Safety Act of 2005 (Act) details the government’s
plan as to when analog television broadcasting will end, currently set
for February 18, 2009. From a consumer electronics point of view,
the pendency of this act has pushed manufacturers to not only introduce
digital television hardware, but to take advantage of that hardware by
providing consumers with options such as high-definition digital
content, two-way interactivity, etc.
The analog spectrum no longer being used for
television broadcasts will be used for wireless and local emergency
communications. The analog broadcast licenses will be auctioned
off with the proceeds going toward funding several government
services. The Act provides details concerning these
services. They are, (1) assistance to coastal states affected by
natural disasters, (2) establishing an improved emergency
communications system, (3) a governmental subsidy program that would
aid households without digital television sets or subscriptions to
cable or satellite to purchase digital converter boxes to allow them to
continue viewing from their analog television sets, and (4) national
debt relief.
Satellite
Radio. The competition between XM and Sirius for paying
satellite radio customers continues, and XM had another huge
promotional presence at this year’s CES, with XM’s black and yellow
tote bags seemingly everywhere. Sirius got a big boost from the
arrival on Howard Stern on Sirius, and Sirius signed up more
subscribers in the fourth quarter of 2005 than did larger rival XM
Satellite Radio, but, unlike years past, Sirius kept a much lower
profile than XM did at this year’s show. XM promoted its new
hardware as well as services, with real-time navigational traffic and
video delivery being two of the highlights.
Mobile
Handsets. Manufacturers of mobile handsets once again had
an increasingly more visible presence at CES, headlined by Samsung,
Nokia, Motorola, Sanyo, and Treo. In years past, mobile handsets
were typically not well represented at CES, but as devices continue to
converge and mobile communications become even more ubiquitous, these
manufacturers have begun to show off not only handsets but related
products as well. Motorola showed off devices such as sunglasses
with integrated Bluetooth functionality, ski helmets and jackets with
integrated digital music and Bluetooth functionality, as well as a slew
of handsets, accessories, and related devices. Samsung showed its
usual impressive display of next-generation handsets, including
numerous models from Korea featuring built-in hard drives (for digital
media), high-megapixel cameras, and advanced geometries. Treo
(Palm) showed its new Treo 700 organizer built on the Windows Mobile
platform, a first for the company, which complemented its Palm-based
Treo 650.
Robotics.
Small robots were on display in the TechZone at CES which featured many
emerging technologies and smaller vendors. While Sony has, in the
past, showed many robotics devices (including the Qrio robot and Aibo
dog), the robots at the Techzone were more consumer oriented and
designed for fun for kids and adults and for educational and practical
uses. LEGO demonstrated its latest version of small robotic
vehicle called MINDSTORMS NXT, a kit which includes a 32-bit
microprocessor “brain”, Bluetooth and USB 2.0 technology, sensors to
detect objects ahead, PC and Mac compatible software, plus plastic LEGO
TECHNIC blocks and elements to build a robot – the ultimate high-tech
parent-child project! Hitec Robotics’ promoted its robot,
ROBONOVA-1, that can be purchased as a kit to be built or already
assembled and “ready to walk.” Another vendor, VEX-ROBOTICS,
demonstrated radio controlled robotic vehicles. And WowWee
products showed off its line of products including the ROBOSAPIEN,
ROBORAPTOR, and other new remote controlled robotic childrens’
toys. All the vendors emphasized that these products have
wonderful benefits and applications in engineering and other scientific
education.
Flash
memory and USB drives. While manufacturers are constantly
pushing flash memory and portable drives to have higher and higher
capacity, on display at CES were also many drives with new
functionality and form factors. For instance, several vendors
displayed “smart flash drives;” flash drives with software programs and
other functionality loaded on the USB drive and designed to allow all
programs to run right from the drive. Not only will the flash
drive carry your data (documents, photos, etc.), but it is no longer
necessary for the computer you are using to even have the application
software that you want to use. There have also been a number of
improvements in security protections for flash drives, both hardware
(e.g., fingerprint readers) as well as software (e.g., data encryption
software right on the drive). And, much like in other areas of
consumer electronics, along with increasing functionality and storage
space, manufacturers are also decreasing size (or improving
designs). Designs featuring integrated covers (in lieu of caps),
improved materials (both fashionable and functional), and significantly
reduced size (including a Sony model that was smaller than a
fingernail) were shown.
Sony Reader.
As mentioned above, Sony has introduced a device that got its start in
the late 90s but went nowhere. Where prior devices (such as the
Rocket e-book) failed, Sony has taken a more strategic approach to the
market by not only developing a sleek device but also signing up major
publishers to join its cause and develop their catalogs for the
format. The Sony Reader is sleek and powerful and runs up to 7500
page views on a single battery charge. It utilizes e-Ink
technology, which gives the screen a stark black and white look that
more resembles the pages in a book than the display of an electronic
device and which is viewable at any angle and in any light, including
bright sunlight. Featuring a large display (which can be
backlit), the Reader also permits easily resizing of text. Best
of all, documents (and books) in Adobe Acrobat PDF are fully accessible
through the device, allowing, for instance, huge amounts of documents
to be brought in a single device, and so the device is being marketed
for more than just books as it could permit document files to be
reviewed much more conveniently than using a computer.
Best Bag
at the 2006 CES Show. With so many exhibitors offering
free bags to carry promotional literature and giveaways while at the
show (there are literally hundreds of different bags given away each
year), Frank and Mike years ago began to name one of the bags that they
received the “best bag.” The award this year goes to TiVo.
With an eye-catching design, the TiVo backpack bag in distinctive
orange and silver was one of the highest-quality giveaway bags at the
show. Honorable mentions go to XM Satellite Radio, with its black
cloth bag with the striking yellow XM logo that seemed to be was
everywhere and was by far the most distributed and carried bag at the
show, and Motorola, for its cool blue backpack bag that was similar to
the TiVo bag but not nearly as eye-catching or easy to obtain.
©
2006 Gorman & Williams. All rights reserved.
