Shindler Observations – CES 2019

The recently concluded CES was a great show.  It provided us with a window into the near and distant future, not just of consumer electronics, but of how we live, work and play.  Tied in with the many stats that we see and track, it provides additional insights into business.

Early stage products or technologies, especially those not from major companies, usually are introduced in locations other than on the main exhibition floor.  We always enjoy seeing what may be on the horizon.

In some cases, we wonder which will be there “next year.”  And there are many that were unknown several years back that are now nearly everywhere.

Afterall, a major conference such as CES is all about tomorrow.  Yesterday’s tech is old news.

For those who have never attended CES, there is something for all 180,000 of us in attendance.

Following are our general observations of the conference.

Overall trends – The three most significant overall trends related to:

• Machine learning/artificial intelligence
• Voice activated devices
• 5G

Here is a sample of the concepts that caught our attention, technology that we will be paying attention to in 2019 and beyond – and so should you.

Machine learning/artificial intelligence – Machine learning/artificial intelligence was everywhere.  We expected to be barraged this year with AI and we were.

In some cases we wondered whether a particular product incorporates true AI or whether it was marketing and hype.

And in the end, AI will not fade away, but will become a constant, mostly positive, factor in our daily lives.  It will take years for the technology to develop to where it will be incorporated into our devices, products & services as product life cycles dictate.

Voice activation/enabled – Alexa, Google Assistant and Siri have enjoyed significant growth in recent years, both from being incorporated into an increasing number of voice activated products to the stand alone, AI based, home speaker systems that can control smart devices as well as answer our numerous questions.

By far, Google Assistant dominated CES.  Their major information “ride” in the Las Vegas Convention Center was packed.  Their ubiquitous presence was accentuated by the fact that numerous booths had Google Assistant personnel dressed in all white uniforms, all with the Google logo on them.  It was hard to miss and was certainly a smart marketing ploy.

The Google Assistant Ride Greeter presumably incorporated the latest in firmware/software as our brief “conversation” with her seemed to be at a higher level than what we typically experience with our current products at home.

Alexa was there too, but not in the same “in your face” manner.  Perhaps Alexa’s #1 market share currently was a factor in their marketing at CES.

Facial recognition, eye tracking and control and gesture based products have made and will continue to make big inroads into CE products, too.  We expected to be barraged here, too, in a good way, but not nearly to the extent of voice.

5G – 5G is the next generation cellular broadband that will likely be used in homes as well, replacing existing wired infrastructure.  The US is a few years off from having any significant traction in 5G, with South Korea and China likely to lead the global roll out.

However, seeds of 5G presence were in many locations at CES and it is only going to grow more significantly in coming years as the smartphone manufacturers and the cell providers develop and begin to deploy their conversion infrastructure.

With consumers upgrading smartphones less frequently than in prior years, it will take several years before the installed base of 4G/LTE phones are replaced and 5G has any meaningful market penetration.

The 5G presence at CES was not limited to the smartphone manufacturers. It was in a significant number of other areas that affect our daily lives, many of which are a part of our observations as the “rest of the rest” as depicted by Steve Case in The Third Wave and as we discussed in The Rest Of The Rest – CES 2017 – Marching Toward The Rest.

Automotive – A relatively small part of CES not that long ago, limited to entertainment products such as high end speakers and entertainment systems, the automotive area is now a significant part of the show.

With the rise of autonomous vehicles from most manufacturers, a wide variety of display devices from windshields with information systems built in to multi-purpose control panels, the rise of the internet of things (IoT) spurred by the potential of 5G, alternative fuels and so much more, the auto area is one of the first areas we visit.

Schaeffler Group had many autonomous driving related exhibits, but the one that was most unusual to our thinking was the wheel that rotates 90 degrees.  It was reminiscent of a prototype we saw a few years ago at the MIT Media Lab where the vehicle can “slide” in and out of a parking spot with the wheels turned 90 degrees, thus enabling a better use of space.

The Karma auto had a solar panel roof.  For those of us living in Southern California, this smart feature should be an option on many brands in the future.  Ford showcased such a car a few years ago, but unfortunately has not done so since.  Too bad.

Perhaps the most future thinking automotive product we saw was WiTricity, a bi-directional wireless Vehicle-to-Grid (V2G) energy management system.  Developed by a group of MIT physicists, and as seen at the Honda booth, wireless charging systems are embedded in the roadway.  Vehicles can be charged while driving and they can also be used as a storage system for the grid.  This product is one of two that earns the Shindler Smart Product of CES 2019 Award.

Driving it all – No, not automotive, but the major chip makers, Intel, AMD, Qualcomm and nVidia all have a major presence at CES, as do many of the smaller manufacturers.  Their latest and forthcoming products drive the electronics we all use.

Water from air – It seems as though this is a concept reserved for scifi, but Watergen, an Israel based company makes water from air that meets all clean water standards and it can do so in relatively large volumes.  It also earns the Shindler Smart Product of CES 2019 Award.

Smartphones and TVs – Both products have matured in recent years with an installed base that has not seen the same growth rate as was the case several years ago.  It is hard not to be pulled into the enormous exhibit areas from the likes of Samsung, LG, Sony, TCL, Hisense, Huawei and a few others.

It was just a few years ago that the Korean manufacturers leapfrogged over the Japanese brands and it may not be too long before the Chinese manufacturers are the leading sellers.  In 2018, Huawei moved into the global #2 position for smartphone sales, shipping 200 million devices, even with no sales in the US.

Size and form factor have been fundamental to new products for years as seen at CES & Display Week, among others.  The Royole FlexPai foldable phone and tablet was very cool and shows the potential, much of which may not come to fruition for a few years, but it is a start.

8K – 8K TVs have had limited but an increasing presence at CES in the past several years.  Nearly all of the TV manufacturers showcased models in ’19 and one company, Skyworth, had a large scale display.  The question is how long before they are on the market and at what sales price?  Currently, there is not much native UHD/4K content available, let alone 8K, but the tech needs to continue its marketing efforts for it to succeed.

While not promoted at CES 2019, it should be noted that CBS is going to have 115 cameras in total at the forthcoming Superbowl LIII with “multiple” 8Ks expected to capture end zone action, including support for the 4K slo-mo footage.  Expect to see/hear about many events at the 2020 Olympics from Tokyo using 8K, so the 2019 CES was a logical place for a significant presence.

Smart home – Smart home products have become a major business with new products and vastly improved older ones seemingly coming to market constantly.  Thermostat/HVAC controls, door locks, security systems, door bells, electrical outlets and others were a major factor this year at CES as these products increasingly are in our homes, with many of them voice activated, in addition to the usual smartphone app control.

We observed many of these at the CEDIA – Custom Electronic Design & Installation Association – conference in September.  Who among us does not already have at least one?

It takes time to develop products and get them into the sales and marketing cycles that drive sales, so many new products that we are saw at CES 19 will not be hitting the retailers until mid – end of year at the earliest.

Big tech – The future of big tech and possible regulations due to privacy and use of data issues was a topic of discussion and debate among show goers.  One of the conference sessions was entitled “Tech and Techlash in the 21^st Century.”  Is that a new word that has been coined?

Robotics – Most of the robotics shown were manufacturing/enterprise related, although there were a number of booths that showed robots for domestic, in-home, use.  One was set up to play table tennis against a human, and it performed quite well.  We had anticipated that robotics would have a larger presence.  Perhaps next year.

VR – Virtual reality made a very big splash at CES and other conferences a few years ago.  It has now diminished significantly and we did not see much of it at all at CES.  AR had a good presence, but not nearly to the extent that VR had a few years ago.

 

These are our general observations.  Of course, there were many other products that were truly innovative in the foregoing areas, wearables, sports tech, health related products, drones and robotics, and much more as we traversed the Las Vegas Convention Center and the numerous hotels and other venues that have become a part of the biggest show on earth.

Contact us if you have further questions or feedback about this blog and how our insights for business can contribute to your success.

© 2019 The Shindler Perspective, Inc.