MHI Solutions - Volume 4, Issue 3 - 31


As the connected home becomes
more and more a reality, the concept of
consumer electronics is expanding. But
the overall sector is in a bit of a change.
Duncan Stewart, technology, media
and telecommunications director of
research at Deloitte Canada, keeps
a keen eye on the shifts. "It isn't well
understood, but we have just finished an
interesting period for devices," he said.
"In 2005, there were about 500 million
consumer electronic devices shipped,
between TV sets, PCs, smartphones
and gaming consoles. In 2015, and now
including the tablet, there were about 2.2
billion devices. That is pretty astonishing growth in a decade."
But, he cautions, that 2.2 billion
number will hold steady in 2016, with
smartphones up a bit, consoles and TVs
flat, and PC/tablet sales down.
"The material handling business did
a great job of gearing up for 400 percent
growth in a 10-year period," Stewart
said. "The new challenge is to adjust
to a period of much slower growth, or
perhaps even volume declines. At the
same time, average selling prices are
falling, which usually means lower margins for many device manufacturers...
and that likely means that they will be
looking to their supply chain for savings. They always have been interested
in minimizing costs, but look for that
focus to intensify."
Before diving too deeply into the price
pressures, though, let's take a look at
trends in the consumer electronics sector.
What's new?
The more likely question is, what's
not-at least if one takes a bit of a longer
range view. In televisions, ultra-highdefinition (4k) is practically standard.
At the Consumer Electronics Show, LG
introduced a TV that rolls up. Organic
light-emitting diodes (OLED) screens
are becoming more commonplace-
eliminating the need for backlighting,
allowing that flexibility to roll. Experts
at the Robb Report say that, once the
bugs are worked out, bendable screens
could make their ways into car interiors
and space-saving home applications.

"There are a number of newer consumer
electronic technologies that have been
introduced in the last few years: drones,
consumer 3D printers, wearable cameras,
wrist bands, smart watches, smart home
devices like thermostats. Each one of these
new categories has had varying levels of
success, but none of them has been a 'next
big thing' that has moved the needle on
consumer device growth."
- Duncan Stewart, technology, media and
telecommunications director of research, Deloitte Canada
But 2016 is not about TVs, but headsets, as in virtual reality. This year,
experts expect 200 million virtual reality (VR) devices to be shipped, ranging from the Facebook-owned Oculus
Rift (with a $1,000 price tag) to Google
Cardboard (with a price tag ranging
from $5-140). PlayStation, Samsung and
smartphone maker HTC also have their
own VR headset versions anticipated
in 2016.
3D printers are getting a lot of attention, but haven't yet made sense for the
consumer market. Robots-a familiar
site in many supply chain settings-also
aren't yet ready for home use.
"There are a number of newer consumer electronic technologies that have
been introduced in the last few years:
drones, consumer 3D printers, wearable
cameras, wrist bands, smart watches,
smart home devices like thermostats,"
Stewart said. "Each one of these new
categories has had varying levels of success, but none of them has been a 'next
big thing' that has moved the needle on
consumer device growth. They sell millions or tens of millions of units, but in
the context of a 2.2 billion-unit market
they haven't really made a noticeable
difference in the end of growth."
But if there is a category that may
be poised to do that-albeit quietly-it
is the Internet of Things, or IoT. This
terms covers disparate products, all
connected to the internet. The smart

refrigerators that can reorder groceries are one example, but that is just the
beginning. Amazon launched its Dash
replenishment service, which takes any
IoT-enabled device and allows it to order
its own replacement parts. Brita water
pitchers can order new filters. Brother
and Samsung printers can order ink
when they start to run low. Gmate's
blood glucose meter reorders testing
strips as needed. A variety of smart pet
food dispensers can make sure Fido
doesn't go hungry.
Regardless of the type of technology, if there is one certain it is constant
tinkering. Vivek Wadhwa, an academic
often referred to as one of the top tech
thinkers in the world, put it this way:
"This is the way innovation happens
now. You release a basic product and
let the market tell you how to make it
better. There is no time to get it perfect;
it may become obsolete even before it
is released."
What it means for supply chains
With sensitive parts now included
in more durable goods-like plastic pet
food bowls-will the warehousing process need to change?
Yan Banducci, senior product line
manager at Omron Adept Technologies
Inc.-Omron's robotics division-sees
opportunity. "In the manufacturing,
inventory control and logistics, those
sensors allow a very granular view of
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MHI SolutIonS

31


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Table of Contents for the Digital Edition of MHI Solutions - Volume 4, Issue 3

CEO Update
Intelligent Robots Offer a Competitive Edge
3D Printing Will Disrupt Manufacturing as Adoption Rates Rise
Predictive Analytics
Sensors and the Industrial Internet of Things
Industry Focus: Consumer Electronics
Industry Report Released
2016 MHI Innovation Awards
The New Face of the Supply Chain?
2016 MHI Annual Conference Preview
Regional Supply Chain Education and Workforce Summits Raise Awareness of Industry, Opportunities
Economic Market Analysis
Safer Handling
Solutions Group Update
Fulfillment Update
Solutions Spotlight
Scholarship Winners: Where Are They Now?
MHI News
Calendar
Index of Advertisers
MHI Solutions - Volume 4, Issue 3 - cover1
MHI Solutions - Volume 4, Issue 3 - cover2
MHI Solutions - Volume 4, Issue 3 - 3
MHI Solutions - Volume 4, Issue 3 - 4
MHI Solutions - Volume 4, Issue 3 - 5
MHI Solutions - Volume 4, Issue 3 - 6
MHI Solutions - Volume 4, Issue 3 - CEO Update
MHI Solutions - Volume 4, Issue 3 - Intelligent Robots Offer a Competitive Edge
MHI Solutions - Volume 4, Issue 3 - 9
MHI Solutions - Volume 4, Issue 3 - 10
MHI Solutions - Volume 4, Issue 3 - 11
MHI Solutions - Volume 4, Issue 3 - 12
MHI Solutions - Volume 4, Issue 3 - 13
MHI Solutions - Volume 4, Issue 3 - 3D Printing Will Disrupt Manufacturing as Adoption Rates Rise
MHI Solutions - Volume 4, Issue 3 - 15
MHI Solutions - Volume 4, Issue 3 - 16
MHI Solutions - Volume 4, Issue 3 - 17
MHI Solutions - Volume 4, Issue 3 - 18
MHI Solutions - Volume 4, Issue 3 - 19
MHI Solutions - Volume 4, Issue 3 - Predictive Analytics
MHI Solutions - Volume 4, Issue 3 - 21
MHI Solutions - Volume 4, Issue 3 - 22
MHI Solutions - Volume 4, Issue 3 - 23
MHI Solutions - Volume 4, Issue 3 - Sensors and the Industrial Internet of Things
MHI Solutions - Volume 4, Issue 3 - 25
MHI Solutions - Volume 4, Issue 3 - 26
MHI Solutions - Volume 4, Issue 3 - 27
MHI Solutions - Volume 4, Issue 3 - 28
MHI Solutions - Volume 4, Issue 3 - 29
MHI Solutions - Volume 4, Issue 3 - Industry Focus: Consumer Electronics
MHI Solutions - Volume 4, Issue 3 - 31
MHI Solutions - Volume 4, Issue 3 - 32
MHI Solutions - Volume 4, Issue 3 - 33
MHI Solutions - Volume 4, Issue 3 - Industry Report Released
MHI Solutions - Volume 4, Issue 3 - 35
MHI Solutions - Volume 4, Issue 3 - 36
MHI Solutions - Volume 4, Issue 3 - 37
MHI Solutions - Volume 4, Issue 3 - 38
MHI Solutions - Volume 4, Issue 3 - 39
MHI Solutions - Volume 4, Issue 3 - 40
MHI Solutions - Volume 4, Issue 3 - 41
MHI Solutions - Volume 4, Issue 3 - 2016 MHI Innovation Awards
MHI Solutions - Volume 4, Issue 3 - 43
MHI Solutions - Volume 4, Issue 3 - 44
MHI Solutions - Volume 4, Issue 3 - 45
MHI Solutions - Volume 4, Issue 3 - 46
MHI Solutions - Volume 4, Issue 3 - 47
MHI Solutions - Volume 4, Issue 3 - The New Face of the Supply Chain?
MHI Solutions - Volume 4, Issue 3 - 49
MHI Solutions - Volume 4, Issue 3 - 50
MHI Solutions - Volume 4, Issue 3 - 51
MHI Solutions - Volume 4, Issue 3 - 52
MHI Solutions - Volume 4, Issue 3 - 53
MHI Solutions - Volume 4, Issue 3 - 54
MHI Solutions - Volume 4, Issue 3 - 55
MHI Solutions - Volume 4, Issue 3 - 56
MHI Solutions - Volume 4, Issue 3 - 57
MHI Solutions - Volume 4, Issue 3 - 2016 MHI Annual Conference Preview
MHI Solutions - Volume 4, Issue 3 - 59
MHI Solutions - Volume 4, Issue 3 - 60
MHI Solutions - Volume 4, Issue 3 - 61
MHI Solutions - Volume 4, Issue 3 - 62
MHI Solutions - Volume 4, Issue 3 - 63
MHI Solutions - Volume 4, Issue 3 - 64
MHI Solutions - Volume 4, Issue 3 - 65
MHI Solutions - Volume 4, Issue 3 - Regional Supply Chain Education and Workforce Summits Raise Awareness of Industry, Opportunities
MHI Solutions - Volume 4, Issue 3 - 67
MHI Solutions - Volume 4, Issue 3 - 68
MHI Solutions - Volume 4, Issue 3 - 69
MHI Solutions - Volume 4, Issue 3 - 70
MHI Solutions - Volume 4, Issue 3 - 71
MHI Solutions - Volume 4, Issue 3 - 72
MHI Solutions - Volume 4, Issue 3 - Economic Market Analysis
MHI Solutions - Volume 4, Issue 3 - 74
MHI Solutions - Volume 4, Issue 3 - Safer Handling
MHI Solutions - Volume 4, Issue 3 - 76
MHI Solutions - Volume 4, Issue 3 - 77
MHI Solutions - Volume 4, Issue 3 - Solutions Group Update
MHI Solutions - Volume 4, Issue 3 - 79
MHI Solutions - Volume 4, Issue 3 - 80
MHI Solutions - Volume 4, Issue 3 - Fulfillment Update
MHI Solutions - Volume 4, Issue 3 - 82
MHI Solutions - Volume 4, Issue 3 - 83
MHI Solutions - Volume 4, Issue 3 - 84
MHI Solutions - Volume 4, Issue 3 - Solutions Spotlight
MHI Solutions - Volume 4, Issue 3 - 86
MHI Solutions - Volume 4, Issue 3 - Scholarship Winners: Where Are They Now?
MHI Solutions - Volume 4, Issue 3 - 88
MHI Solutions - Volume 4, Issue 3 - MHI News
MHI Solutions - Volume 4, Issue 3 - 90
MHI Solutions - Volume 4, Issue 3 - 91
MHI Solutions - Volume 4, Issue 3 - 92
MHI Solutions - Volume 4, Issue 3 - 93
MHI Solutions - Volume 4, Issue 3 - 94
MHI Solutions - Volume 4, Issue 3 - 95
MHI Solutions - Volume 4, Issue 3 - 96
MHI Solutions - Volume 4, Issue 3 - Index of Advertisers
MHI Solutions - Volume 4, Issue 3 - 98
MHI Solutions - Volume 4, Issue 3 - cover3
MHI Solutions - Volume 4, Issue 3 - cover4
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