In just a few weeks, I’m off to the International CES, or Consumer Electronics Show, in Las Vegas. CES is one of the world’s largest conventions and last year’s event attracted over 140,000 visitors, according to official CES PR.
I’m not sure how true that was – severe winter weather caused all kinds of flight cancellations in the Midwest and some folks never made it out in time. Still, “the joint was jumpin’!” as Fats Waller used to say. The aisles were certainly packed full of attendees and there were plenty of exhibits to take up my 3.5 days in Vegas.
One thing really stuck out this year. In recent years, more and more Chinese CE brands have been expanding their booth space, but this year featured some booths that were as large if not larger than those of more established Japanese brands like Toshiba, Panasonic, and Sharp.
Microsoft, who used to exhibit at the show, pulled out for 2013 and ceded their booth to Hisense, an industrial manufacturing giant in China. In 2014, the enormous Hisense booth featured TVs in all sizes and resolutions (including 4K), major appliances, computing products, and demonstrations of gesture and voice control.
Behind the LG booth, Changhong and Konka had large booths. The Changhong booth had a miniature city created in detail as the centerpiece of an exhibit of televisions and appliances. One of the latter featured a contemporary multi-range stove/oven combination with built-in LCD TV. In another section of the booth, Changhong showed a simple gesture control system, using a game of virtual darts.
Konka’s booth was distinguished by quantities of 2K and 4K TVs using both LCD and OLED technology. Curved televisions were quite the newsmaker in the Samsung and LG booths last January, but Konka had a few of them, too.
So did TCL, another Chinese conglomerate that manufactures RCA and Sanyo TVs sold in the United States. (They license the Sanyo name from Panasonic.) In addition to OLED and curved LCD displays, TCL showed a 110-inch behemoth with finger-tip gesture control and TVs with Roku functionality built-in.
Other Chinese brands that made the trek to Nevada included Haier (everything from televisions to microwaves and washer/dryer combos), China National Corporation (CNC, again a player in entertainment and white goods) and Skyworth, who showed a full range of TVs; flat and curved.
None of these companies was even on anyone’s radar a decade ago. (Well, maybe a few importers.) But the rise of Chinese manufacturing has led to unprecedented drops in the prices of consumer goods.
A good example would be the LCD TV market. A year ago, Chinese manufacturers determined that gearing up for Ultra HD TV production was a smarter move than chasing such high-priced exotic technologies like OLED TVs. Not surprisingly, they captured considerable domestic TV market share from CE giants Samsung and LG by doing so.
Now, we have multiple sources for various sizes of 4K LCD glass coming out of China, and the pricing we’re seeing on Ultra HD sets through December reflects the impact these 4K panels have had. It wasn’t difficult at all to buy a 55-inch 4K TV for less than $1,000, a price point that last year would buy you a 55-inch 2K TV.
Vizio, a major player in consumer TV, brought out a line of 4K TVs in September and by late November had implemented major discounts. Their P-series 65-inch Ultra HDTV had a list price of about $2,200 when it was announced in January, yet several brick-and-mortar retails stores had it for $1,500 with a bonus soundbar around Black Friday.
It might surprise you to find out just how many electronic devices are manufactured in China, from iPads and iPhones to Android tablets and phones, televisions, so-called wearable fitness electronics like wrist heart monitors, headphones and earbuds, and a plethora of wireless gadgets.
I was initially taken aback to see a large booth in the lower South Hall featuring a full range of commercial AV HDMI matrix switchers, distribution amplifiers, and signal format converters, manufactured by Shiny Bow, an obscure Chinese brand. Then I thought, “Why not? A lot of the stuff we use every day in commercial installs is made in China or at least assembled stateside from components and parts manufactured in China.”
The 110-inch LCD TV I mentioned earlier actually comes from a factory in the province of Shenzen, China, and is a joint venture between Samsung, TCL, and the local government that is formally known as China Star Optoelectronic Technologies, or CSOT. (Samsung also makes a TV that uses this large LCD panel.)
I think you get the point: China Inc. is becoming a serious player in consumer (and commercial) electronics, and their expanding booths at CES drive the point home. In contrast, some of the brands whose booths used to dominate the Central Hall are shrinking, like Panasonic, Sharp, and Toshiba. (Mitsubishi is gone completely and Hitachi showed more commercial products than consumer last January.)
Given the growing market share of China in CE manufacturing and their ever-larger booths at trade shows, maybe referring to CES as the “Chinese Electronics Show” isn’t as facetious as it sounds…
Posted by Pete Putman, December 19, 2014 6:42 PM
About Pete PutmanPeter Putman is the president of ROAM Consulting L.L.C. His company provides training, marketing communications, and product testing/development services to manufacturers, dealers, and end-users of displays, display interfaces, and related products.
Pete edits and publishes HDTVexpert.com, a Web blog focused on digital TV, HDTV, and display technologies. He is also a columnist for Pro AV magazine, the leading trade publication for commercial AV systems integrators.