Consumer electronics growing, visitors clicking via Smart Phone


Coming out of this year’s Consumer Electronics Show in Las Vegas and moving forward: Smartphones and Netbooks are poised for strong growth.

Gartner projects that by 2013 your website visitors will most likely be clicking in via a smart phone rather than from a desktop Web browser. Q: Is your website prepared today to move with technology and the consumer, who are your radio listeners and TV viewers? How are your web metrics tracking? 

The projections are that in three years the installed base of smart phones and Web-enabled mobile devices will outnumber PCs. Gartner’s projection is 1.78 billion PCs and 1.82 billion Internet-enabled phones in the market.

So what does this tell you has to be accomplished today, in 2010, to be competitive by 2013?

The consumer electronics (CE) industry will generate more than $165 billion in US shipment revenues this year, a slight increase from 2009, according to the semi-annual industry forecast released by the Consumer Electronics Association (CEA). CEA President and CEO Gary Shapiro announced the forecast in his opening remarks at the 2010 International CES, the world’s largest consumer technology trade show.

“2009 is a year none of us wish to repeat and now we look forward to 2010. There is light at the end of the tunnel and it is the bright light of innovation,” said Shapiro. “We are seeing more innovation at this show than at any show in our history. There are a record number of new exhibitors, more than 330, among the 2,500 companies showcasing the next generation of technology.”

The CE industry will see positive revenue growth in 2010 after a revenue decline in 2009.

Total industry shipment revenues fell an estimated 7.8 percent in 2009 although unit volume increased nearly ten percent for the year as consumers bought electronics at a value, limiting industry revenues. As the economy begins its slow recovery from the recession, the CE industry will lead the way as popular product categories are poised for growth in 2010.

Here’s what’s hot

The wireless handset category is expected to have a strong 2010, becoming the primary revenue driver for the industry. Smart phones continue to lead the way, generating nearly $17 billion in shipment revenue and more than 52 million unit sales in 2010.

Smart phones comprise more than 30% of total wireless phone shipments, with that number increasing in the years ahead.

Sales of computers are also expected to be a bright spot in 2010, as the category continues to be driven by the popularity of netbooks.

Netbook sales more than doubled in 2009 as the computer category showed stronger sales than previous forecasts predicted. In 2010, more than 30 million notebooks will be sold, generating more than $14 billion in revenue.

Smartphones and netbooks are primed for strong growth as consumers continue to seek efficient, portable devices. “With more consumers seeking content anywhere, anytime, the demand for products facilitating these experiences will drive purchases going forward,” said Steve Koenig, CEA’s director of industry analysis.

Blu-ray players will continue to grow after a strong 2009. Blu-ray unit sales rose 155 percent in 2009 with more than seven million units being sold, generating more than $1 billion in revenue. The trend will continue in 2010, with unit sales projected to top 11.5 million and revenues to increase to $1.4 billion.

TV sets are still hot sellers

The television market has been one of the primary revenue drivers the past several years as consumers made the transition to high-definition, flat-panel sets.

Unit sales will climb to more than 37 million in 2010, but price drops will cause display revenue to decline slightly to $22 billion.

Innovation in TV displays, such as 3D, Internet connectivity and OLED technology, will continue to grow and help maintain revenue in the display category. CEA projects sales of more than 4 million 3D television sets in 2010.


Being an audio medium, radio broadcasters must engage into the internet business. To many it will be a new business model – starting from scratch to build an infrastructure that will cross-market with their analog signal.

Radio is one of the last mediums that has yet to embrace technology, but has the most to gain as radio is the only medium that has the advantage of connecting with a loyal consumer to their formats and to drive traffic to their website.

Newspapers and magazines will struggle in an attempt to play catch up. Newspapers and magazines have experienced consistent declines in all areas of their business model.  Technology will not save the print market, unless their model is overhauled and print learns to become a part of the solution.

RBR-TVBR observation: The Consumer Electronics Show demonstrates that “Technology does not wait for anyone.” It is time to engage and embrace or – simply put – go home. It is all about the metrics.

There is no single media business that has not felt the sting of the past three years of recession – and the only means to gain footing for the future is with technology.

Remember where we have come from in technology: 2001 up to 2009. iPhone was introduced on Jan. 9, 2007 – plus, wireless devices such as smartphones is being driven by social-networking applications. – Tell ya anything? (Think)

Think what it will be over these next 10 years, and remember the business runs on two year cycles.
Key word of advice: Never get ahead of technology, but keep pace with it. 

Remember that when you first build your web component, Content is King but only if you Control the Content.

Like a Radio format or new TV program, you first build an audience, it grows over time, then you receive your ratings or numbers – in the case of internet/web it will be the metrics –  then the very last part are the revenues – revenues are the last to arrive. Key is the two year business cycle. 

We have just stated what will be in 2013, now is the time in 2010, 2011 and 2012 to start, build, and grow. Radio and TV are only a part of the media mix but only if your business model incorporates technology: Smartphones and Netbooks are poised for strong growth.  

With the internet/web – It is all about the metrics and then – Revenues will follow. 

– Jim Carnegie

(source: data and information provided in part by Consumer Electronics Association (CEA)®.)