Consumer Electronic Industry Changes

Consumer Electronics Industry Changes

Consumer electronics is a large international industry. Competition is high and manufactures must stay active in the pursuit of new technology to remain competitive. Televisions make up a small percentage of total sales for consumer electronics, but the challenge for manufactureres is notable. Challenges faced by these manufacturers range from government mandadted changes to technological advancement. A change forced upon television manufacturers is the broadcast format changes in 2009. Manufactures must also compete with each other to be the first to deliver a new technology to the market. Three dimension televisions and DVD players also brought changes the market.

Analog to Digital Conversion

In 2009, all television networks stopped broadcasting using an analog signal and began using a digital signal. The change in broadcast format brought changes for the television manufacturers as well. Digital is preferred over analog because it takes up much less space on the bandwidth. The extra space can be used both to produce a sharper, clearer image, and for emergency services (Robert Vaux).

All televisions produced after 2007 had to be able to receive a digital signal. This does not mean televisions produced prior to 2007 were obsolete; these televisions require a digital converter to change the signal to analog that can be displayed on the television. The U.S. government assisted consumers that had to purchase converter boxes. Starting Jan. 1, 2008, all U.S. households will be eligible to request up to two $40 coupons to be used toward the purchase of up to two, digital-to-analog converter boxes, while the initial $990 million allocated for the program is available (National Telecommunications and Information Administration, U.S. Department of Commerce, 2007).

Competition Between Manufacturers

Consumers are intrigued by advances in technology. There is a feeling of satisfaction when owning the latest and greatest products. Television manufacturers strive to gain consumer attention by being the first to introduce a new technology. Televisions are offered in various sizes with more features than ever. However, a successful product in the consumer market quickly attracts copycat products from the competition, leading to rapid price erosion. To stay ahead of the competition, consumer manufacturers are forced to constantly enhance their products or support emerging technologies (Altera Corporation). With the rapid changes in technology, new products hit the shelves before the previous year's models have become common.

Industry trade shows are the perfect setting for manufactures to showcase their new products. The largest of these shows is the Consumer Electronics Show (CES) that is produced by the Consumer Electronics Association (CEA).

New products debuted at CES: (CEA Author)

* Plasma TV, 2001

* Blu-Ray DVD, 2003

* 3DHDTV

* Tablets, Netbooks, and Andriod Devices, 2010

* Connected TV, Smart Appliances, Android Honeycomb, Ford's Electric Focus, Microsoft Avatar Kinect, 2011

While customers want the latest and greatest technology, the product itself must be easy to operate and dependable. The company must provide excellent service as part of