Vision - May/June 2008 - (Page 2)

Shapiro’S SpectruM on the consumer electronics horizon The Future of the Car ith a slow economy, high gas prices and green concerns, it seems counter-intuitive to focus on mobile platforms for investment. Yet, the car is certain to become a hub for our industry. Today’s navigation systems, MP3 docking, kids’ video and HD radio seem to cover all possibilities. But more is coming. At this year’s CES, in-vehicle electronics grabbed headlines and Detroit came to Vegas in a big way. GM’s Rick Wagoner introduced the exciting new Provoq with its advanced green technology. Bill Gates showcased enhanced features of Microsoft and Ford’s popular SYNC technology. Why were these auto industry initiatives unveiled at CES? Because the auto industry and the consumer electronics industry are increasingly intertwined. We saw hundreds of revolutionary CE products from in-vehicle exhibitors at the show. Even the most ubiquitous in-car product—the radio—is being transformed. Through the digital capability of HD Radio technology, the in-car experience is being enhanced with additional content choices and exciting new services such as iTunes tagging, real-time traffic and weather information, gas prices, even movie times. Plus it will harness the benefits of localism with the intensity and clarity of digital. More, the Internet will be getting into the car. WiMAX and new cellular services promise broadband in the car. The recently auctioned analog television spectrum also will provide new services and opportunities. W Imagine if the Internet is in the car and it knows where you are. New services will be created and marketed which allow the providers to satisfy driver and passenger needs for location-based information. Cars also will get safer as they identify and respond to all other objects nearby. Biometrics not only will provide security but also will assess physical needs and challenges. Driving will be less risky. It will be more informative and interesting, and music will respond not only to your wants but to your moods and the passing scenery. These services will be available to all mobile consumers. They will foster new products and a new entrepreneurial wave. A survey CEA conducted this winter tells us that Americans now spend nearly 17 hours a week in their cars. That figure rivals the 21 hours of television we watch on average each week. Drivers want to be in touch, informed, entertained and safe while on the road and consumer electronics allow them to have it all. In fact, sales in the mobile electronics category grew 22 percent last year to more than $11 billion. CEA expects 13 percent growth in 2008. Our new research also finds that consumers value flexibility. They are spending more on CE devices that can be moved in and out of the car than on devices permanently installed in the vehicle. Some of these products aren’t even specifically designed for use in the car, but are moving into vehicles as consumers seek to take communication and entertainment devices with them wherever they go. A quarter of the driving age population plans to spend money on these products this year. That’s nearly $23 billion that will be pumped into the economy. If you combine the diversity of the Internet, with the fat broadband pipeline and make it available to a mobile customer, you have spawned a new industry. This package of potential will enhance the consumer’s experience. And our entrepreneurs and our industry will be at the forefront of this next big wave combining service, content and technology. Fasten your seat belt. Enjoy the ride! • 2 May/June 2008 www.ce.org http://www.ce.org

Table of Contents Feed for the Digital Edition of Vision - May/June 2008

Vision - May/June 2008 Contents Shapiro's Spectrum In This Issue The Economist C4 Trends Visionary Making the Smartphone Truly Intelligent Shipping Strategies for CE Companies IP in BRIC Countries CEA Newsline Tech Speak Eye on Business Tech Policy Market Insider Just the Stats

Vision - May/June 2008

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