Happy New Year! What Lies Ahead?

Another year, another 365 days. What do we have to look forward to in the consumer electronics industry in 2009? We'll find out much of this at the 2009 International CES, which commences next week in Las Vegas. But there is still plenty that we can safely anticipate.

When it comes to flat-panel TV technology, this could be the year for OLED. Sure, Sony has already been selling its portable (and stunning!) model for more than a year; but might we see larger-format displays utilizing the technology in homes this year?

In the cellular arena, new carriers will commence operations by around Q3/Q4. What will this mean for existing carrier business? What's more, can new entrants even sustain themselves through this troubling economy? After all, building an entire cellular network is a costly venture! Google's Android format will also hit the phones market in full force by the end of this year, leaving much to the imagination on the apps and software side.

Internet radios are also poised to make waves. It's an interesting paradox: while many other devices encourage us to buy digital music online then stream it to our home audio systems, these radios base their differentiating factor on, in part, free, Internet radio content. Could they result in a drop in the sale of digital music? Probably not, since people still like the play their own collections. But these radios do point toward a larger trend in the industry: the connection of the PC to the overall home theatre system.

On that front, many people are excited to see what the PC companies are up to this year. What's up Microsoft's sleeves? Intel? And with Steve Jobs absent from this year's Macworld (which will be the last Apple participates in), will 2009 be a quiet year from the Mac, iPod, and iPhone maker?

We can't, of course, ignore the state of the economy, which will inevitably lead to tough times ahead. But this doesn't mean technology development becomes stagnant, nor that people lock themselves up at home never to visit a retail store again until times get better. Shopping through the holidays, and especially on Boxing Day, proved that Canadians still have a relatively positive outlook that we'll get through the financial crisis.

Still, 2009 is poised to be an exciting year for this industry, as always. Stay tuned next week, where we'll be reporting to you from CES!

What Will They Think of Next?: Deal-Stalking Site

With people searching frantically for deals before they fork over dough to shop, it comes as no surprise that some are attempting to capitalize on the trend. A new Website called http://www.jungleninja.com/ "stalks" the Amazon.ca Website for deals 24/7, then posts them, with the best ones ranked at the top. The site, set up by a company in Winnipeg, MB, collects info on any Amazon product that's reduced by 20% or less.

"Shopping on Amazon is really like a cyber jungle with huge discounts hidden all over the site," explains Web developer Evan Falk. "With the economic downtown, my colleagues and I created this free alert so consumers, including ourselves, could find the best bargains fast."

These guys could certainly be on to something. The site is accessible for free, does not contain any spam or ads, and is not affiliated with Amazon.ca in any way. But should it take off as a "Google for deals" of sorts, these guys might be in for a treat.

Recession, or Minor Setback?

Aside from the pending election, the biggest buzz nowadays is about the existence (or perceived existence) of a "recession". But are things really that bad north of the border here in Canada? Many would beg to differ.

An interesting article in the National Post written by Jacqueline Thorpe and Paul Vieira quotes the governor of the Bank of Canada, Mark Carney, as stating that the "sky is not falling" in this country, adding that while we should prepare for "sluggish growth", we do not "have the imbalances in our economy that other economies have going into this time of difficulty."

This shouldn't be taken to mean that Canadians will skate through this time completely unaffected. Companies will need to scale back certain niceties, and make minor adjustments until the situation blows over (and let's face it: it will blow over eventually). But the important thing is to remain as close as possible to "business as usual". After all, when things get back to what many would call "normal", it'll be those who kept their head high through the tough times that benefit the most.

What's more, many are confident that the tech sector specifically is somewhat "recession-proof", if not at least recession-"resistant". TWICE Magazine claims that U.S. TV manufacturers are "cautiously optimistic" that sales will continue to be strong through the upcoming holiday season, despite what's going on in the economy.

The reason is obvious: if you cut costs by not eating out, going shopping, or heading out to see a movie, what do you do? Stay at home! You can take the kids out for dinner and a movie every Friday night, or invest in a home theatre system (and some Ben & Jerrys!) at home that can be enjoyed for years and years to come instead of just one night. As research firm Futuresource Consulting puts it, these items offer much better "value-for-money", along with "tangible benefits." On the TV end, the only cut-back Futuresource has observed is in size: it seems that rather than fork over the extra dough for 50"+-sized panels, customers appear to be, more often than before, opting for 32" and 42" sets instead.

The optimism doesn't just relate to the TV industry, though. It also goes for computer-related products, and even video games. Sure, it isn't healthy to stay seated on the couch every weekend just because you don't want to go out and spend money. But why not watch TV while on the treadmill? Or play some Nintendo Wii games with the family instead of heading out to Chuck E Cheese? Bottom line: there is a way that consumers can reduce frivolous spending that can also benefit the CE industry.

Nevertheless, retailers, manufacturers, and distributors are, and will continue to do what they have to do in order to be cautious and remain profitable. I've seen several e-mail notifications that advise of price increases due to the "falling Canadian currency", or that regretfully announce the cessation of certain incentive programs for the time being. C'est la vie, as they say. But the most important thing to consider is to keep your business strong by whatever means necessary. Otherwise, you'll be eating everyone else's dust once things pick up again.

Does Recession Mean Increased Interest in Technology?

I have said many times that, in a recession, consumer electronics is likely the one category that won't suffer as much as the others. Today, a study commissioned by Blockbuster reports the same. Why? When people don't have as much disposable income, they stay home. What do they do at home? Watch TV or movies, play videos game, and surf around on the 'net.

So while the restaurant, vacation, and other like recreational industries are suffering, consumer electronics are becoming more central to people's daily lives. Granted, while people are watching more TV at home (87% of survey respondents said they would be using their home theatre more often in the coming months) they aren't exactly spending more money: your cable/satellite bill doesn't go up if you watch more TV, unless you opt for pay channels. But this means that consumers might become more aware of new technologies as they place more focus on digital entertainment. They might learn about channels they don't have and look into subscribing (I'm saving hundreds of dollars by not eating out every Friday anymore, so what's another $5/mo. tacked onto my cable bill?)

As lagging consumers stare at the old clunker of a TV in the middle of the living room that they didn't spend so much time with before, they might even start thinking of upgrading. If you're watching it more now, that justifies the purchase, right?

Of course Blockbuster hopes that this increased interest in "staying home" will also amount to lots and lots of movie rentals. It probably will. And hopefully once the recession has passed, consumers will look to invest in a fancy new home theatre so that they can enjoy these movies, as well as regular TV programming, and even video games, in all their glory.