LAS VEGAS-Whether we like it or not, most of us are plugged in, turned on or otherwise connected to everyone else on this planet. But in spite of these universal ties, there is growing interest in maintaining individuality, or so it seemed at the International Consumer Electronics Show in Las Vegas last week. Hundreds of vendors converged to showcase products created to address a similar, yet different, consumer market.
Show-goers once again were met with the battle cry that applications will drive new technology.
In his Executive Perspective keynote address, America Online’s president of interactive services, Barry Schuler, said companies must not lose sight of what consumers want.
Schuler said products and services must be seamless and easy to use, and they must provide consumers with value.
“Normal people don’t buy the technology,” he said. “They buy the benefits of technology.”
Schuler said the continuing expansion of Internet services will lead to new consumers, convenience and convergence.
The show zeroed in on wireless technology with a wireless supersession, two wireless conferences and a variety of exhibits, the majority of which were housed in sections of four temporary tents just outside the Las Vegas Convention Center. Plans are under way to expand the convention center by CES time next year so all exhibits will fit under one roof.
In conjunction with the show, the Consumer Electronics Association, the sponsor of CES, announced it formed the Wireless Communications Division, which the association said will engage in retail training, specialized market and consumer research, promotional programs and issue advocacy.
Throughout the wireless contingent, the main topics of conversation were third-generation and Bluetooth technologies.
“It’s important to understand the value proposition for consumers with 3G,” said Jon Thode of Motorola Inc. during a wireless panel discussion. “With the i-mode services in Japan, DoCoMo is teaching us a new business model, which may be a harbinger of new 3G services that allow multimedia, mobile media messaging and video postcards.”
Other attendees discussed the possible drawbacks of Bluetooth.
“Cost is always the issue,” said Kari-Pekka Wilska, president and chief executive officer of Nokia Corp. “Bluetooth adds to the cost of the phone.”
Bluetooth was predicted to become a standard, the process of which will be helped by the industry’s ability to get the cost of Bluetooth technology under $5 and get the applications in line, noted Desmond O’Donnell of Conexant Systems.
Mike Foley from Microsoft Corp. said Bluetooth will see overall acceptance when it is “brain-dead simple, out-of-the-box working.”
Thode, Wilska and Philip Christopher, president and CEO of Audiovox Corp., all participated in a wireless luncheon, each offering their insights into the state of the industry. When asked when 3G technology will be widely available, Wilska said not until later this year or early 2002.
“We need to first get the technology solved and then launch services,” Wilska said.
Christopher noted that the launch of 3G is not really up to the handset manufacturers, but the burden instead lies with carriers.
“Those (3G) terminals are no good to anyone unless there is a network out there to support them,” Christopher said.
Third-generation-enabled handsets, pagers and personal digital assistants were plentiful at the show. Manufacturers are making the screens bigger, adding color and simplifying the devices. Most notably, devices are being tailored to address the unique needs of every traditional market segment. From road warriors to “tweens,” there seemed to be a device or accessory for everyone, and many should be available to consumers by the second quarter.
“More than ever before we have a segmentation of the market,” Christopher said.
