Grim U.S. spending has many consumer electronics makers struggling to boost sales. But vendors like Sony, Samsung, Panasonic, and Apple expect that their new, sleek designs will persuade consumers to open their wallets.
They say that while "consumers may be cutting their discretionary spending, not all gadgets are discretionary—and for many households, the essentials include flat-screen TVs and laptop computers," according to a March 30, 2009, Business Week article titled "How the Flat-screen TV Saved Best Buy."
Thinnovation
Apple coined the term Thinnovation in 2008 after it unveiled the MacBook Air. Since then, other big electronics companies have jumped on board hoping to cash in on the Thinnovation phenomenon. Hitachi, Pioneer, Panasonic, LG, and Sony all boost of cardboard-thin monitors. And thin is in when it comes to TVs. But the ultraslim technology is capable of more than just looking pretty. Manufacturers are packing more technology into smaller spaces including 3D-capability and Web features that allow users to program sets remotely.
New Consumer Products Hit Stores in Record Time
On April 15, 2010, Bang & Olufsen began shipping a $6,200 LED television, the BeoVision 10, that's 2.5-inches thick. And the company says it developed the new TV in record time. In a frenzy to come up with the thin TV, the company worked relentlessly to get it out in 10 months, says an April 21, 2010, Bloomberg BusinessWeek article titled “Consumer Electronics Makers Think Thin.”
But the shift to thin technology isn't just about making something that consumers think is cool. In an April 7, 2010, presentation in San Jose where Scott Birnbaum, vice-president for Samsung's LCD business, unveiled Samsung's new technologies, he said the TV marketplace dynamic is moving toward ultrathin designs for good reason.
He pointed out that the ultrathin design has become a prerequisite to entice consumers to pay more, according to the Bloomberg Business Week article. Further, the new Samsung TV design is based on a more expensive LCD technology called light-emitting diodes. And that commands are hefty price tag.
Consumers Demand Style and Function
To get consumers to open their wallets, Stan Glasgow, president of Sony Electronics' U.S. division, said that focusing on consumer trends and tailoring products to meet consumers' demand for style and function are the best methods to make that happen. Including features that allow users to take advantage of social networking sites like Twitter and Facebook along with other technology similar to that found in personal computer makes the new technologies even more appealing. And that puts the big players ahead of game. In a tough economy being ahead is the only place to be.
In spite of technology’s innovations, U.S. sales of consumer electronics fell 7.7 percent, to $164.9 billion, in 2009, according to the Consumer Electronics Association. Added to the already slow market, the association only expects a mere 0.6 percent rise in electronic sales in 2010.
Further, says the Bloomberg Business Week article, the average selling price for electronics is declining because consumers comparison shop before buying. And many analysts think that a lot of consumers will wait to buy new technology because once this technology becomes a few months old, large, rapid prices drops are likely. In other words: Why buy the new flat-screen now when it will be $500 or more cheaper in a few months?
Will Downsized Electronics Give Consumers the Buying Itch?
Manufacturers hope that the downsized TVs, computers, and other gadgets will attract more spending. In fact, most consumer electronics makers are counting the economy recovering—and soon. They believe the demand for their products will boom and all of their efforts will be worth the risk. And they think that consumers still want the new flat panel TVs so much they will be willing to pay the price. Until then, they will continue to make thinner products to entice consumers back into the market.
For more information about consumer electronics, go to the Consumer Electronics Association website.
Kathy Jesperson - Kathy Jesperson is veteran journalist with more than 18 years’ experience. She has written about environmental health, water ...
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