Price Gouging is Never Right

A colleague and I were chatting the other day about price gouging. Particularly, the way things have gotten so expensive in Las Vegas during the annual Consumer Electronics Show. You no doubt pay more for a flight to Sin City (or any other destination, for that matter) during the days of such a big show then you would any other time of the year. Why? Because airlines know that people from around the world will be traveling there in the thousands. Hotel stays also creep up in price: you might end up paying upwards of $300 for a room that would cost half that any other night. (On New Year's Eve, for example, even the most basic hotel room in Vegas will run you five-hundred smackers!) And do we really need to pay US$10 for a watered-down, half-glass of vodka and cranberry at a cheesy hotel bar?

Of course it all comes down to the basic principles of supply and demand. The more coveted a product or service is by the masses, the higher the price of said product might rise. I've seen nasty examples of this on several, isolated occasions. Anyone who lives in Toronto and tried to buy a bottle of cold water during the sweltering hot summer blackout a few years ago knows exactly what I mean ($5 for a 250 ml bottle, anyone?)

This got me to thinking: is price gouging rampant everywhere? Rather, more specifically, is it rampant within the consumer electronics industry?

In the CE industry, it seems that the situation is exactly the opposite, especially when it comes to big-ticket items. It's no secret that companies like Toshiba and Sony took a hit in order to sell products like first-generation HD DVD players and Playstation 3 at the prices they did. And we all know what severe price erosion is doing to the flat-panel TV industry.

But when it comes to many smaller-ticket items, the gap between cost and sale price is exponentially wider. However, this isn't exactly price gouging: manufacturers and retailers need to make a profit somehow, right? And just because a product might cost X to manufacturer, we all know that plenty of people involved in between the manufacturing process, and the point the product arrives in your hands, need to get paid somehow.

Of course every Tom, Dick, and Harry will have felt, at one time or another, that he's paid what he thinks is "too much" for something. But there's a big difference between perception of price, and actual price "gouging" of the customer.

Needless to say, before you buy into anything, whether it's a product, vacation package, or service, do your research. If you're planning a vacation, investigate times, other than the obvious seasonal differences, when prices usually rise. For example, heading to any city when there's a big trade show or festival won't be your cheapest bet! And always make comparisons before forking over your dough.

As for the water story, it was only select gas stations that were gouging customers who strolled in with sweat dripping off their foreheads and dry mouths, dying for a drop of cold aqua. But charging $5 in a situation like that is just wrong, no matter how you slice it.

[Photo: www.freedigitalphotos.net]

CES 2008: Parting Shots

CES wraps up on Thursday, January 10, and exhibitors will likely be spending the day tearing down booths (many likely after having less than 2 hours sleep the night prior!) As I wrap things up from the show, I thought I'd provide some brief, parting shots.

When it comes to flat-panel, thin is in, if for no other reason than aesthetics. But so is black, both in bezel design and the ability to reproduce the colour (or rather lack there-of) as accurately as possible in a screen. What happens when we've achieved 100% perfect black, and go as thin as we can with flat-panel? The next wave of major excitement will likely generate when we see large-sized OLEDs in stores.

As mentioned in earlier blog posts, I'm floored by the number of portable GPS manufacturers exhibiting at the show, as well as major brand names that are actively enhancing their current navigation device lines and, in the case of Panasonic, entering the category for the first time.

Either there has been a significant increase in the number of navigation devices on the main show floor (which I consider South and Central Halls), or business has skyrocketed over the past year such that smaller companies can now afford larger booths that give them a more significant presence. In fact, I overheard one attendee muse to his colleague that it wasn't the consumer electronics show, it was the "GPS show".

If I were to estimate, the exhibit space dedicated to mobile phones and related accessories has probably increased by 50% over last year, proving how quickly the category is merging with consumer electronics. In terms of the accessories themselves, with mobile phones now employing so many additional multimedia-based features, what once served as add-ons for MP3 players, like portable sound systems, headphones, and the like, now fall into the category of cellular as well. Could it be that exhibitors are marketing the same products toward mobile phone customers now rather than dedicated portable audio player owners?

With that said, stay tuned to the February 2008 issue of Marketnews Magazine for further reportage on the show, and more detailed product information on everything from flat-panels, to audio, cellular, navigation, and hiddem gems in every category. For a sneak peek at some neat items ahead of time, visit the video section of our site at www.marketnews.ca/videos.asp. (Videos will continue to be added after the show, so keep checking back for additional content!)

[Photo: Although it's only at the concept stage and therefore not an actual, saleable product, this neat watch phone from LG lets you dial your desired telephone number via a sequence of button presses, or by voice with compatible mobile phones. It operates on the GSM standard.]

CES 2008: Canada Night a Success

With all the meetings and demonstrations, it's nice to have a night of fun and (hopefully) relaxation. Canada Night 2008, our gathering of Canada industry members (and their U.S. and international counterparts) was a great success last night. I must admit: with Vegas looking oddly quiet this year, I was expecting Canada Night attendance to be down. But judging from the packed Caesar's Palace ballroom and outer hall area, that certainly wasn't the case.

It is always great to see everyone from the Canadian industry get together for some food, fun, and entertainment. Many expressed their enjoyment of the band this year, as well as the atmosphere. It was packed, but not such that one was literally rubbing shoulders with another person at all times.

We enjoy seeing the faces of loyal attendees each year, but it's also nice to meet new faces that are coming to the event for the first time. This year, attendees included retailers, manufacturers and distributors in every area of technology, from home A/V to mobile phones.

Gatherings like Canada Night remind us just how small and tight-knit the Canadian consumer electronics industry is. Old friends and colleagues re-unite, competitors shake hands, and new business partnerships are made.

Thanks to all of our sponsors and everyone who came out for another great event. Canada Night simply wouldn't be what it is without you.

On that note, I'm sure many are anxious to see photos of the event, which we'll post online at http://www.marketnews.ca/ later in the month.

CES 2008: Gadgets Galore and Going Green

The Las Vegas Convention Center is packed with visitors from around the world that are here to see everything from computer products, to home theatre, wireless, imaging, and gadgets. Although the CES show floor (and hotels) seem a bit less crowded this year, there's still no question that there is an overwhelming amount of products to see at the show, and overwhelmingly little time to do it.

Really, what any journalist reports on is going to be based on the most significant product announcements, of course, but also on what he has time to see. It's often the case, however, that we come across a neat product by chance, sometimes just by being attracted to the booth from the mere sight of the item. This is exactly how I discovered Canadian-based Edifier, which is showcasing its sexy, triangular-shaped E3350 speakers in a selection of gorgeous and vibrant finishes. With the ability to connect to a PC or MP3 player via 3.5 mm jack, the E3350 consists of the main sub, plus a pair of two-way satellites, and a separate, circular volume piece that hides a second 3.5 mm jack for connecting an MP3 player, along with a headphone jack. On the show floor, it sounded smooth and pleasant. It is scheduled for availability at the end of February for approx. US$99.

Another interesting product announcement came from Bell ExpressVu, who showed us a concept that would allow its customers to use any, ol' external hard drive to extend the recording capacity of the company's new 9242 HD PVR. With large-capacity hard drives now available for affordable prices (remember my tale of the 1TB drive for $200 on Boxing Day?), a customer would be able to easily utilize a drive to store recordings he wants to archive, like movies or a favourite TV show; or even simply as a back-up. Multiple drives could also be used for various content. Recorded programming will be movable from the PVR to hard drive and vice versa; but you will not be able to transfer content to a PC. What makes this feature even more attractive is that you can resume watching TV while the content is being transferred. (To transfer a standard movie, it takes about 10-15 minutes). This is definitely a feature that Bell ExpressVu customers should be keeping an eye out for. Visit the Videos section on http://www.marketnews.ca/ or http://www.hereshow.ca/ this week to see a full run-down of some additional ways that Bell will be building on this feature, including a partnership with portable media player company Archos.

There were still a few press conferences yesterday, and one notable announcements was Hitachi's 1.5" ultra-thin plasma display. Measuring 50" in size, the attractive flat-panel is expected to be available in 2009. Meanwhile, the company also showed off its new wafer-thin 32" LCD that measures a mere 0.75".

Over at SanDisk, Dr. Eli Harary impressed attendees with his announcement of the company's new 12 GB microSD card for future use in compatible mobile phones. “The mobile phone market is the mother of all growth markets,” he emphasized.

There's certainly plenty of evidence of that on the show floor, with tons of cell phone manufacturers showing off their latest wares and focusing on memory-hungry applications like GPS navigation, and music, video, and photo playback. With all of these fancy, new features coming to the latest mobile phone incarnations, it's no wonder SanDisk sees a lucrative market for high-capacity microSD.

Finally, CES has really been pushing the "green" theme at this year's show, as has been many exhibitors. HP, for example, says its entire booth is "green", including carpeting made from corn! Even the company's pens are made from 100% recycled material, including a cardboard body, and popsicle stick=like handle. Throughout the show, I've seen everything from solar-powered devices, to "green" power-saving devices, and even bags made from recycled materials.

Today is the second official day of the show, and it looks much busier than it did yesterday. With a lot of ground to cover, it's unlikely I'll see every nook and cranny of the show. But from what I've seen thus far, consumer technology is on the way to even more exciting times in 2008.

CES 2008: A Whole Lotta Stuff

After the press conferences on Press Day have ended, we typically head over to a "pre-show" exhibit that pretty much serves as a mini-CES. In a massive hotel ballroom, hundreds of exhibitors set up shop for journalists to come by and get a glimpse of what they'll be launching the next day in their larger booths on the actual show floor.

This year, it appears there were a lot more participants on both the exhibitor and attendee side. What I thought might be a quiet, much more sub-dued environment turned out to be a smaller version of the loud and crowded show floor. Nevertheless, it was a worthwhile event.

In terms of product, there was tons, from a slew of portable GPS navigation devices, to digital photo frames (yep, they're still hot), and other nifty gadgets and gizmos. One of my favourites: a digital photo frame from Smartparts that has a 4 x 6 printer attached to its back. Just select the desired image, press the "print" button on the included remote and the blue button on the back of the frame, and out comes your photo in less than two-minutes time. (Stay tuned to http://www.marketnews.ca/ for a video demonstration of this product).

Another fave (also soon to be available via video demonstration) is Belkin's RockStar (shown above), which is likely to be very popular among the teenage crowd. The star-shaped hub has six standard 3.5 mm jacks (one of which is hard-wired for connecting MP3 players) and/or headphones, and sharing the music experience with friends. A second wire is included for connecting another MP3 player, while additional cords are available for purchase. Once connected, kids can share tunes with one another, listen to each other's tunes, or even mix tunes together. It's just US$19.99, which makes it even more attractive for parents!

The mini-show was open for a three-hour period, but that wasn't nearly enough time to chat with even 50% of the companies there. However, many told me they were showing off just a few, select products there, but have kept the main launches for today, the first official day of the show. Of course, how else are they going to get you to come to their booth, right? Needless to say, I will indeed be visiting a few people again to see what more they have to offer.

2008 CES: Simply Beautiful

I'm not referring to CES itself when I say "simply beautiful", although Las Vegas is certainly a very bright and lively city. Rather, simplicity and beauty are underlying themes at the show, which is set to officially commence on Monday, January 7.

Today, Sunday, January 6, was deemed "press day" where major manufacturers gathered journalists of all kinds (including the new "blogger" designation, of which I noticed many) to learn about what's coming down the pike in 2008. The day is stressful, it's hot, you stand in line after line with fellow journalists bumping into you, stepping on your feet, and pushing you to get the best seats in the house or the free swag. But it's all worth it to see what's hot for the new year.

Before I get into all the goodies, I want to first address what's been the talk of the streets, so to speak, here at the show. Warner's decision to abandon the HD DVD high-definition DVD format and support Blu-ray exclusively has really put a thorn in HD DVD's side, and many are predicting that there will be an end to the format war earlier than we had anticipated. I must admit that the loss of Warner is quite a hefty blow, but we'll see how things pan out throughout the course of the show and the weeks that follow.

Now, back to press day. The design/lifestyle theme isn't really a "new" one: consumer electronics products have been looking sleek and sexy for ages. But we're seeing a revitalized emphasis in the flat-panel arena, specifically. I already discussed the expected trending toward thin-bezel designs, and new product announcements proved this to be true. Toshiba announced a new 52" model in its Super Narrow Bezel LCD line that's just 0.9" thin, and can fit in the spot typically occupied by a 46" model! Panasonic is taking the "thin" theme to Blu-ray with what it deems the "world's thinnest" Blu-ray disc drive; while Sharp displayed a 65" prototype LCD that is less than 1" thin and weighs 88 lbs. (and with a contrast of 100,000:1 to boot!)

But there are also other, aesthetically-pleasing enhancements being made in the category. Samsung is adding a "touch of colour" to its displays via a seamless cabinet that eliminates screws on the front, and adds, well, a touch of colour to the frame. Meanwhile, Sony is taking aesthetics to a whole new level with the launch of an 11" OLED TV that's actually available for purchase today! They say good things come in small packages, and they're right. Sure, it's a far stretch from a 60" TV in your home theatre, and lifespan issues persist. But with images so superbly gorgeous, you can't help but stare in awe.

Of course although a nice-looking TV is great, it's what's inside that counts, right? We all know about 1080p, 120 Hz refresh rate, and fast response times that are being incorporated into the latest and greatest flat-panels. But every manufacturer also demonstrated a specific focus on inter-connectivity, either involving the Web itself, and/or among various devices. Take Sharp's new AQUOS Net feature, for example, which provides access via an Ethernet port on the TV to a portal with neat items like sports, weather reports, traffic updates, and even entertainment through partnerships with companies like NBC. Just press a button on the remote, and up comes an interactive menu. J.W. Park, President of Samsung Electronics' Digital Media Group demonstrated a new feature that would allow a video captured on its new camcorder to be wirelessly streamed to a TV, along with its new Series 7 LCDs that would include a built-in Ethernet port and a side-mounted USB slot. Panasonic is focusing heavily on the flash memory card format, incorporating one in many new products scheduled for introduction, ranging from new high-def camcorders, to plasma and LCDs, GPS devices, and even an integrated home theatre system (which also includes a Blu-ray player and iPod dock). What's more, the company (which brands its own SD memory cards) will be launching a 32 GB (yes, you read that correctly!) later this month. Although a price point wasn't announced, we can expect it to be somewhat substantial.

Philips' most promising "integration" device is its BTM-630, which can play back CDs, has an iPod dock, SD card slot, USB port, and Bluetooth technology for connecting with a Bluetooth-enabled mobile phone. It can also serve as a speakerphone for your phone, and even shows the caller information on its screen. When a call comes through, it will automatically pause music, then resume once it's been terminated.

Noteworthy is also Samsung's announcement of its first prototype products using A-VSB mobile TV, an open industry standard for broadcast TV. "It transforms the digital broadcast signal to be able to reach mobile devices,"explained John Godfrey. "Using the over-the-air spectrum, it can deliver things like news, weather, and sports. It turns local TV into mobile platforms."

Snagging the award for the most unusual integrated, connected device of the day, however, is Sony. The Rolly is an egg-shaped device that can play back music from its 2 GB of flash memory or streamed from a Walkman or other MP3 player, a PC, or the new PSP. What's odd about Rolly is that it also dances to that music, rolling and gyrating on the surface with which it sits. "We've created a new way to listen and enjoy music," explained the company's Senior V.P. Rick Clancy. Indeed they have.

That brings us to another theme: simplicity, which was explicitly expressed through taglines like Philips' "Sense and Simplicity" and Samsung's "Life made simple". The focus here is, well, simple. Create products that are easy to use. Sharp takes this philosophy one step further via an Advantage Live tech-support service that would allow the rep (with the customer's permission, of course) access his TV remotely to troubleshoot problems, check settings, etc.

Finally, the last stand-out theme at this show was, by far, environmental initiatives. Arguably the most significant announcement involves the formation of the Electronic Manufacturer's Recycling Management Company, LLC or "MRM", which consists of a partnership among Toshiba, Panasonic, and Sharp. The three companies have joined forces to manage the collection and recycling of electronics within the U.S. The organization has already made arrangements with Hitachi, JVC, Mitsubishi, Philips, Pioneer, Sanyo, and Olevia. Kudos to these guys for taking initiative on helping make the world greener!

So much was announced and discussed today that it would be impossible for me to cover it all here. However, judging from my observations, we can look forward to a lot of simple and beautiful products, enhanced connectivity among all product categories, and an increased focus on helping the environment.

Stay tuned for more information throughout the show.

[Photo: Sony's OLED is just 11" in size, but it packs a lot of punch in picture quality.]

Pre-CES: What to Look Forward to

The largest technology showcase in North America, the 2008 International CES, is fast-approaching. Although I can't sum up the event with one, stand-out theme just yet (unless I want to use the boring, all-encompassing term "technological innovation"), there are a few observations that can be made before our feet even step foot onto the overwhelming 1.8 million square feet of exhibit space.

Last year, the focus in flat-panels was on 1080p high-definition (yes, the "full" kind), and large screen sizes, as evidenced by announcements like Sharp's mammoth 108" LCD TV. This year, we can expect to see a shift in focus toward reduced depth rather than larger screen sizes. After all, can we really get much bigger than 108"? Needless to say, the term "thin is in" will be no stranger to many a company's exhibit. And don't forget OLED, which has also been garnering a lot of attention in the market as of late. We're certain to see some new and exciting innovations in that category.

Portable gadgets typically span every nook and cranny of the technology arena, and likewise, the CES show floor! In 2007, integrating features like video playback and GPS navigation into traditional MP3 players and smartphones were top-of-mind. This year, what we used to know as the portable audio player has since been enhanced to become the portable "media" player, as video playback has become almost an expected feature in the latest models. Given this, manufacturers are coming up with even more exciting ways to spice up the category, via abilities like WiFi or Bluetooth connectivity, and even fitness tracking. Ever since the iPhone hit the U.S. market, we've also seen an increased interest in creating a cell phone/multimedia player combo device that can serve as the true "jack of all trades" for the mobile consumer. The Sands Convention Center, as well as good ol' South and Central halls, will likely be the places to find hidden gems in the general gadgetry category.

It seems, then, that I can, in fact, pinpoint an overall, underlying theme of the show: entertainment. This year, CES is even attracting the attention of music and movie studio personalities that we often wouldn't find at a "technology" event (other than for publicity purposes, of course). These include, among celebrities like Yoko Ono, Natasha Bedingfield, will.i.am from the Black Eyed Peas and Mary J. Blige, Comcast Corp. Chairman and CEO Brian L. Roberts, who will join the esteemed group of keynote addresses; and long-time music industry veteran Quincy Jones III. Technology is certainly playing an ever important (and changing!) role in the distribution, consumption, and enjoyment of entertainment; and the entire industry will be on-hand to see just what's in store for 2008 and beyond.

Finally, one recurring theme across the show will be "going green", as companies demonstrate ways to do things like conserve energy, help eliminate e-waste, and promote more efficient living while still enjoying helpful and fun gadgetry and technologies.

All of these observations merely scratch the surface of what we can expect from the 2,700 exhibitors and almost 2 million square footage of space at the 2008 CES; not to mention the growing number of off-site suites that aim to provide some breathing-time away from the show (although they often require brutal travel time, but don't get me started...)

Despite the existence of several, more focused A/V, photo, and wireless trade events, CES still remains the major launchpad for the most influential technologies of the year, and is likely to be attended by many this year. Stay tuned next week for coverage from the show floor on this blog, and on our sister Websites, http://www.marketnews.ca/ and http://www.hereshow.ca/, including video product demos and diaries, and reportage of the latest and greatest in the tech sector.

On a related note, although Apple-fanatics will likely get their fill of iPod docks, skins, cases, accessories, and the like at CES, there will no doubt be some big news coming from Apple's dedicated MacWorld event, which actually runs after CES this year (January 15-18) rather than concurrent with it. Finally.