Visitors walk by the Samsung booth at the International Consumer Electronics Show at the Las Vegas Convention Center in Las Vegas, Nev. CES, the world's largest annual consumer technology trade show, runs through Jan. 11 and features 2,700 exhibitors showing off their latest products and services to more than 130,000 attendees. / AFP-Yonhap |
By Kim Yoo-chul
Korea Times Correspondent
LAS VEGAS ― Vast, but few striking products. Even amid higher expectations of the world’s biggest technology show for consumer electronics, the reality of the deepening economic slowdown surely seems difficult to ignore.
Over the past few years, the annual Consumer Electronics Show (CES) has widely been described as a ``war zone’’ because manufacturers showed off cutting-edge technology, competing for the spotlight.
But this year’s show was subdued, with fewer manufacturers, retailers and attendees.
Sales promoters on the main show floors were beseeching bystanders to come into their booths and public relations officials cramped near their entryways to try to tempt more visitors.
The Consumer Electronics Association (CEA) ― a main organizer at the show ― now forecasts a drop of 0.6 percent in spending on consumer electronics, with the global economy deteriorating, while the U.S. economy is suffering from a long, deep recession.
``The news from Wall Street is adding more uncertainty,’’ Gary Shapiro, CEA’s president and CEO, said.
``Yes, less buzz,’’ said Motoichiro Oshima, an official from Kenwood USA.
CEA estimates that 130,000 people will attend, down from 141,000 in 2008. Hotel rooms in Las Vegas can still be found, usually a difficult task at this time of year.
Meanwhile, some 2,700 exhibitors are now spread over 1.7 million square feet from last year’s 3,000 exhibitors.
The mood caught on not just among manufacturers but even among the products displayed by the world’s leading consumer electronics makers.
Japan’s Sony unveiled a much-anticipated series of televisions but analysts and show officials say Sony has been shifting its main TV strategy to mid-tier levels.
It had also been expected to release a prototype of highly-advanced 50-inch LCD TV equipped with next-generation panel AM OLED. But Sony just presented a smaller 27-inch model.
``By pitching up efforts to steadily introduce mid-tier line-ups, we will take on the move. Showing off technology is meaningless amid the global economic downturn,’’ said a Sony official, asking not to be identified.
Sony introduced the world’s lightest 8-inch notebook computer.
Panasonic, the world’s biggest maker of plasma panels, also talked about some strategies in the release of three-dimensional TVs, by swearing to drive the marketing in ``small inches.’’
``For two consecutive years, Panasonic exhibited a 150-inch plasma TV, meaning the bad economy has been redefining the concept of the tech show to `actual sales’ from `technology show-off,’” said an Panasonic official.
Sharp joined the ``moves’’ by showing 108-inch panels in recent years, while company officials say the company wants to survive in the global consumer electronics market with affordable products.
Different Story for Korean Makers
But South Korean tech giants are drawing different scenarios regardless of the sobering mood.
LG Electronics aims to raise its LCD TV sales by 50 percent this year to take on its biggest Japanese rival, Sony, in the highly-unstable flat-screen market.
``LG target aims to sell 18 million LCD TV sets this year to increase our share to 15 percent, from 10.5 percent last year,’’ Kang Shin-ik, head of LG’s home entertainment division, said in a luncheon meeting with a group of South Korean journalists. LG ranks No. 3 in the global LCD market, after Samsung Electronics and Sony.
``Japanese electronics makers were hit by weaker consumer demand and a stronger yen against the greenback. Now, time is on our side to overtake the rival,’’ Kang said.
``We will be very aggressive in spending on research & development (R&D), marketing and creating more appealing products,’’ Kang said, adding LG will try to maintain a 2 percent operating margin on its TV business this year.
In plasma TVs, LG also hopes to sell a minimum of 3.5 million units in 2009 from the 2.8 million sold last year. As The Korea Times exclusively reported, the company is seriously considering retiring its money-losing 32-inch plasma lines to focus on the more profitable 50-plus inch line.
Earlier, Samsung said it was targeting 10 percent growth in LCD TV sales to 22 million units.
Apart from aggressive business targets for the South Korean electronics duo, Samsung is set to commercialize its LED LCD TVs, while LG plans to propel its sales of Internet-based broadband flat-screens through a partnership with Yahoo.
In a separate meeting, the chief of LG Display, Kwon Young-soo, said the demand for LCD panels has been increasing, with the price of a 32-inch LCD TV showing signs of a turnaround.
``Consumer demand for TVs is still weak. But I see some positive signs in the global TV market,’’ Kwon said, adding Japanese TV makers are expected to suffer from a stronger yen.
``Companies are looking to do business at the show that they would otherwise do with individual customer visits,’’ said an analyst at NPD, a market research firm.
``But for some players, such trends might be an opportunity for a bigger share,’’ according to the analyst. ``That’s a change from years ago, when companies obsessed with excess offered items such as larger and symbolic products that were far beyond the financial reach of consumers.’’
yckim@koreatimes.co.kr
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yistory@koreatimes.co.kr
