CES Is Filled with New Technologies, But Will the Customers Afford It?

By David Fierce
12:33, January 9th 2009
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CES Is Filled with New Technologies, But Will the Customers Afford It?

Even though all big manufacturers have displayed new products and revolutionizing technologies at this year’s Consumer Electronics Show, many analysts fear that the big players are in fact facing big problems behind the scene.

The most obvious case is Intel’s, the biggest chip manufacturer worldwide. The company stated that it would not reach its sales target in Q4 2008, even though executives of the company had already reduced thee forecast before.

Moreover, Logitech, the leader of PC peripherals, said that it would reduce its number of employees by 15% during this year, as demand has decreased dramatically in the last months of 2008.

As if it wasn’t enough, a recent survey of Forrester Research revealed that only 5% of users intend to spend more in purchasing computer hardware and other equipment in 2009. The study also pointed out that sales of electronic equipment will increase only by 0.1% in Q4 2008. However, other analysts are skeptic about this estimate, too.

Nevertheless, according to Stan Glasgow, president of the U.S. division of Sony Electronics, the industry must go on, as manufacturers cannot permit to “stop innovating,” and probably this is why manufacturers are developing both revolutionizing devices and aggressive marketing campaigns. Still, the economic depression might leave them with big inventories and few customers in 2009.

As an example, high-definition TV manufacturers, including Sony, LG and Samsung, have already spent a big amount of money in building factories that produce every part of their devices. In this context, it is hard to believe that these companies will manage to sell enough units in order to amortize the investment.

It remains to be seen if the new products highlighted at CES will convince enough customers to forget about the economic recession for a moment and buy their merchandise. 



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