CES debate: Computers vs. televisions

Friday, Jan. 10, 2003 | 11:17 a.m.

Two International Consumer Electronics Show speakers Thursday made their cases for what electronic device should be the entertainment center of the U.S. household -- the home computer or the television set.

Craig Barrett, chief executive officer of Intel Corp., the world's largest manufacturer of computer chips, said unwiring consumers is part of the solution in making the personal computer the heart of home entertainment and information experience.

"The PC remains the most powerful and flexible device available to consumers and it continues to evolve with new capabilities," Barrett said in his keynote address at CES, which continues through Sunday in Las Vegas.

"The PC is becoming unwired. Wireless technologies are being integrated into the PC, which will offer the user more freedom and flexibility," he said.

Barrett said one of the keys to unwiring the consumer is in a new technology the company announced at the show, its Centrino brand of chip, which will enhance wireless capabilities. Products are expected to be available later this year.

"This developmental work will lead to the creation of unwired digital devices, more users and more opportunity," Barrett said. "Consumers want technology to be available at any time and any place."

Meanwhile, Sony Worldwide Corp. used star power to get its message across that the television and assorted digital devices will be the center of attention.

After a state-of-the-industry report said television sales are expected to climb in 2003, Sony's president and chief operating officer discussed his company's strategy.

The popularity of digital television devices is good news for Kunitake Ando, who introduced a video camera that burns DVDs.

Ando, who welcomed actress Drew Barrymore and Gospel singing duo Mary Mary to the stage to demonstrate the ease of producing videos, also discussed how broadband connections and the Internet are building the popularity of Sony's CoCoon (Connected Community on Network) technology as well as its popular PlayStation2 video gaming system.

Earlier Thursday, Gary Shapiro, president and chief executive officer of the Consumer Electronics Association, said the industry reported sales of $96.2 billion in 2002, noting that the nation's hunger for gadgets has helped carry the economy through troubling times.

"We continue to stand as an essential cog in the national economy, even in these uncertain times," Shapiro said.

The association expects sales to surpass the $100 billion plateau as the affordability of digital products, such as stand-alone DVD players, drives the market. Shapiro said DVD players are now in 35 percent of all U.S. homes and unit sales totaled 17.6 million in 2002, up 39 percent from the previous year. Sales are expected to climb an additional 14 percent next year, reaching 20.1 million units sold, worth $2.6 billion.

Sales of digital television sets surpassed CEA forecasts, with 2.7 million units shipped last year. By the end of 2003, consumers will have invested more than $15 billion in digital television products with unit sales reaching 3.8 million, valued at $5.5 billion.

Another strong category for the year, he said, are flat-screen televisions. Sales of plasma sets are expected to climb by 40 percent in 2003, he said, with 965,000 units sold last year and 1.1 million units expected to be sold in 2003, with sales expected to hit $111 million.

While consumer electronics product sales are strong and expect to stay that way this year, association researchers say the notion that gadgets are a "boys' toys" phenomenon aren't necessarily true. The chairwoman of the board of CEA said new focus will be placed in the future on marketing sales to women.

Kathy Gornik, president of Thiel Audio Products, said a public relations initiative is being undertaken because association researchers have determined that women's interest in technology products is on the rise. Gornik said 20 percent of women own a laptop computer today compared with 12 percent in 2000. Nearly two-thirds of women own a cellular telephone compared with 49 percent in 2000 and 58 percent own a handheld music device compared with 51 percent in 2000.

The CEA study says three out of four women initiate the purchase of a consumer electronics product themselves or along with their spouse or partner. Female consumers spend about $55 billion each year on consumer electronics products.