To: BillyG who wrote (27940 ) 1/11/1998 11:14:00 PM From: CPAMarty Respond to of 50808
Steady wins racetechweb.com ; Richard Walace Christmas 1997 was supposed to have been a watershed event in consumer electronics, riding the promise of the digital video disk. But the roadblocks in DVD's path-including production delays and the late emergence of Divx, a potential DVD killer-kept it from making much headway. Also something of a non-starter, despite Microsoft's backing, was Web-TV. The existing product was over a year old by Christmas, and the Web-TV Plus release barely made it to store shelves in time for the holiday selling season. Similarly, Web-TV's dozen or so competitors were pretty much no-shows. Even PCs, which have become a perennial holiday heavyweight, had a lackluster season. Into this uncertain market climate, hundreds of new consumer-electronics products debuted last week at the Winter Consumer Electronics Show. Strong showings were put in by digital cameras, in-vehicle information/navigation systems and all manner of digital TV-based home-theater equipment. Retailers are hoping that next Christmas, the product pipeline will be filled with enough innovative, competitively priced products to make the season a blockbuster. But consumer-market experts tell us not to count on it. They note that in recent years, the seasonal cycles that have characterized the consumer-electronics industry have been replaced by a pattern of steady, if less spectacular, demand. To some degree, the phenomenon has already been experienced by the PC industry, which logged respectable home-PC sales last year despite a slow yearend. Such a market shift could profoundly affect system builders' design and manufacturing operations. The one-shot Christmas silver bullet will be replaced by a longer window for product acceptance. But steady rather than cyclical demand could mandate more design spins and design turns. And, as products become increasingly complex, manufacturers can expect longer technology-absorption cycles, longer product cycles and soaring product-development costs. If you're a chip or board maker who thinks the consumer-electronics market is slowing down, better look again. Copyright (c) 1998 CMP Media Inc. New Search | Search the Web You can reach this article directly here:techweb.com