Vision - September/October 2008 - (Page 21)

BIG on the latest Ce deviCes By Gary Arlen U ltra-large flat-panel high-definition TV sets are widely installed in Israeli homes— in quantities exceeding what might be expected in a country with a population about half that of metropolitan New York. One reason for the fast, deep HDTV penetration may have been the aggressive promotions that introduced the sets to decorators, designers and other taste-makers. Even the local observers seemed surprised that one apartment has a couple of the sets, given the relatively small size of many Jerusalem and Tel Aviv homes. The HDTV experience says several things about the consumer electronics appetite in Israel. A recent Euromonitor International study concluded that Israeli consumers are more demanding about brands and are “willing to pay more for designed products, well-branded products and other status symbols.” Shlomo Waxe, director general of the Israel Association of Electronics and Software Industries, puts it more succinctly: “We like gadgets,” Waxe declares. Another insider says Israel’s “sabras” (the native-born population) are “the world’s best early adopters.” Like its Mideast neighbors, Israel is an electronics merchant’s nirvana—although often for different reasons. With nearly five percent of its population working in or around the high-tech industry, Israel has a sizeable base of educated, tech-savvy customers who are drawn to the latest and greatest CE devices. Its free trade agreement with the U.S., signed in 1985, makes it relatively easy for Israeli customers to acquire products from America, and it is one reason that the U.S. is Israel’s largest trading partner. Moreover the current weakness of the dollar is bringing a constant flow of Israeli citizens to visit the U.S. In the past year about one out of every 15 Israelis has traveled to the U.S., giving them an opportunity to see—and buy or at least sample—CE products they want. Their travel-shopping experiences further prime the pump for sales of those products when they get back home and describe or show new devices to family and friends. “People appreciate American brands,” explains an Israeli CE expert. “ In my experIence It Is better to work wIth a local dIstrIbutor than to buIld up a network. — shlomo Waxe, director general of the israel association of electronics and software industries ” Mobile Mania In some categories, Israeli CE sales are overwhelming. Waxe points out that there are 8.5 million mobile phone handsets in use in a country of 7.1 million people, which means well over a 100 percent penetration level. About 30 percent of Israel’s telecommunications equipment comes from the U.S.—more than $300 million worth of reception devices and transmission equipment. “There’s no doubt that we have one of the highest penetrations of desktop and laptop computers” in the world, Waxe adds, a view that is backed by data showing that nearly 80 percent of Israeli homes have a PC and more than 60 percent are hooked up to the Internet. Israelis have a seemingly insatiable appetite for cutting-edge CE products and services. Moreover, the falling price of flat-panel sets has spurred more buying. While the typical Israeli home had two cathode-ray tube TV sets, the arrival of flat-screen units in the past three years has boosted the average to 2.5 screens per home and some experts believe that three or more digital receivers will soon be the norm. Ironically, despite the vast popularity of digital TV monitors, the Israeli broadcasting authority is moving slowly on its plans for transition to an all-digital TV system. Initial plans have been proposed during the past year, but there is no timetable for September/October 2008 21

Table of Contents Feed for the Digital Edition of Vision - September/October 2008

Vision - September/October 2008 Contents Shapiro's Spectrum In this Issue The Economist Visionary C4 Trends Coming to a Neighborhood Near You IPv6: Connecting People and Things Israelis Spend Big on the Latest CE Devices Tech Speak Tech Policy CEA Newsline Going Global Eye on Business Market Insider Just the Stats

Vision - September/October 2008

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