CES Reporter's Notebook: Recession Has Leading Role At CES
11 January 2009 - 4:25AM
Dow Jones News
LAS VEGAS--The recession had a starring role at this year's
Consumer Electronics Show.
The annual homage to gadgets was devoid of blockbuster
announcements or over-the-top products it's known for, like the
150-inch TV introduced at last year's event that seemed designed
for shock value rather than the living room. Instead, the recession
infused just about every product announcement, speaker session
A day before the show officially began, the usual day-long
marathon of press conferences by major Asian consumer electronics
makers all had the same somber choreography: each began with
executives acknowledging the souring economic times and the
challenges they faced as a result, followed by a new array of
products for these austere economic times.
Meanwhile, crowds were markedly thinner at this year's CES,
which most likely means a third consecutive year of lower overall
attendance. The number of exhibitors was down by about 300.
This had a surreal effect for CES veterans: readily available
cabs and shuttle busses. In years past, the show has been so
jam-packed, cab and shuttle bus lines stretched for a few football
fields, and the wait could be an hour or more. On the first day of
the show, usually the height of the madness, catching a cab meant
waiting about five minutes, and empty shuttle busses lined up
awaiting passengers.
The recession's impact on consumer electronics spending also
hung over just about everything. Case in point: Gary Shapiro, who
heads the Consumer Electronics Association, which hosts the show,
kicked things off with a cold shower of an address in which he said
spending on electronic gadgets will dip dramatically this year.
Academy-award winning actor Tom Hanks took the stage next to
kick off the keynote address by Sony Corp (SNE) Chief Executive
Officer Howard Stringer. "Gary Shapiro: way to serve up a hell of a
cup of coffee," Hanks said. "That was rousing."
Microsoft's (MSFT) Steve Ballmer's keynote address Wednesday
night bordered on a dirge at times.
When two ailing companies can create the biggest splash at a
major consumer electronics show, you know things have changed
drastically. Yahoo Inc. (YHOO) and Palm Inc. (PALM) managed to rise
head and shoulders above the thousands of others at the show with
some new products. For Palm, it was their new Pre phone, which
helped double their shares price in two days. Yahoo and its widget
engine for TVs also played a starring role.
But there was one notable exception in John Chambers, chief
executive officer of Cisco Systems Inc. (CSCO).
Chambers is a favorite speaker at CES because of his unbridled
enthusiasm. This year was no different. On the same day that it was
announced that U.S. unemployment had reached a 63 year high,
Chambers spent an energetic hour on stage painting an upbeat
picture for technology going forward. In this year's rendition, he
focused on the company's new emphasis on making consumer
products.
Some could interpret that move as Cisco searching for new
markets to drive sales in a downturn that's choking off business IT
spending, which is Cisco's sweet spot. But one wouldn't know that
from Chambers keynote address.
He mentioned the recession once, and put his usual positive spin
on it. During the last few downturns, Cisco increased its market
share each time, Chambers noted.
"I'm more optimistic than most people in this room," he said
amid a scrum of well-wishers after his address.
-By Ben Charny, Dow Jones Newswires; 415-765-8230;
ben.charny@dowjones.com
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