LAS VEGAS: As tech industry leaders gather for an annual extravaganza showcasing hot new products, political uncertainty is casting a cloud over the sector.
The election of Donald Trump and the Brexit referendum are among the factors weighing on the outlook. And a strong US dollar may cut into spending for many consumers around the world.
With the Consumer Electronics Show (CES) kicking off this week in Las Vegas, the organizers are predicting that industry revenue would shrink for the fourth consecutive year.
Consumer Technology Association senior director of market research Steve Koenig revealed the forecast Tuesday, predicting the amount of money people around the world spend on smartphones and other gadgets this year would tally $929 billion as compared to $950 billion in 2016.
Koenig said the “underpinning” of the global forecast was “uncertainty with the election of Trump and with Brexit.”
“This air of uncertainty certainly is going to impact discretionary spending of consumers; business investment, and investment by governments,” Koenig contended.
Nearly half of the money spent on consumer technology will be for smartphones, which were forecast to account for 47 percent of spending on devices.
“Mobility really does make the world go around,” Koenig said during a CTA presentation ahead of the official opening of the show Thursday.
“The smartphone is the center of the consumer technology universe.”
Smartphones, tablets, desktop computers, laptops, televisions, cameras and smartwatches made up a set of categories expected to account for some 81 percent, or $754 billion, in consumer electronics industry revenue this year.
This is the first time smartwatches have made it into what Koenig called the “Magnificent Seven” revenue generating products in the industry.
“We are seeing a lot of traction in smart watches,” Koenig said. “Wearable (computing devices) are generating lots of innovation that is fueling lots of growth.”
In one of the first events at the show, Chinese electronics giant Huawei announced the global launch of its mid-range Honor 6x smartphone which includes dual-lens camera technology and is aimed at young consumers.
The smartphone, which was launched in China last year, will be available in 13 new markets this month, including the United States, at a price of $249 to $299, the company announced at CES.
Huawei has emerged as the world’s third largest smartphone vendor but has had only limited success in the United States.
Huawei, which has a declared goal of becoming the number one smartphone maker, faces a crowded market behind the top two sellers, competing against other Chinese firms such as Lenovo and Xiaomi and South Korea’s LG, which have also slated announcements at the electronics show.
Fiat-Chrysler, meanwhile, used CES to unveil a Portal concept car designed for Millennials: An electric-powered minivan with modular components that can be adapted for autonomous driving.
Inside a boxy exterior, the vehicle has an adaptable, modular “third space” that can be modified for passengers or cargo.
The company said it can be used in “semi-autonomous operation,” where a driver has the option to turn control over to the vehicle under certain highway driving situations.
The Portal uses an array of sensors to monitor conditions that can assist drivers and is designed to allow upgrades for more self-driving capabilities.
The election of Donald Trump and the Brexit referendum are among the factors weighing on the outlook. And a strong US dollar may cut into spending for many consumers around the world.
With the Consumer Electronics Show (CES) kicking off this week in Las Vegas, the organizers are predicting that industry revenue would shrink for the fourth consecutive year.
Consumer Technology Association senior director of market research Steve Koenig revealed the forecast Tuesday, predicting the amount of money people around the world spend on smartphones and other gadgets this year would tally $929 billion as compared to $950 billion in 2016.
Koenig said the “underpinning” of the global forecast was “uncertainty with the election of Trump and with Brexit.”
“This air of uncertainty certainly is going to impact discretionary spending of consumers; business investment, and investment by governments,” Koenig contended.
Nearly half of the money spent on consumer technology will be for smartphones, which were forecast to account for 47 percent of spending on devices.
“Mobility really does make the world go around,” Koenig said during a CTA presentation ahead of the official opening of the show Thursday.
“The smartphone is the center of the consumer technology universe.”
Smartphones, tablets, desktop computers, laptops, televisions, cameras and smartwatches made up a set of categories expected to account for some 81 percent, or $754 billion, in consumer electronics industry revenue this year.
This is the first time smartwatches have made it into what Koenig called the “Magnificent Seven” revenue generating products in the industry.
“We are seeing a lot of traction in smart watches,” Koenig said. “Wearable (computing devices) are generating lots of innovation that is fueling lots of growth.”
In one of the first events at the show, Chinese electronics giant Huawei announced the global launch of its mid-range Honor 6x smartphone which includes dual-lens camera technology and is aimed at young consumers.
The smartphone, which was launched in China last year, will be available in 13 new markets this month, including the United States, at a price of $249 to $299, the company announced at CES.
Huawei has emerged as the world’s third largest smartphone vendor but has had only limited success in the United States.
Huawei, which has a declared goal of becoming the number one smartphone maker, faces a crowded market behind the top two sellers, competing against other Chinese firms such as Lenovo and Xiaomi and South Korea’s LG, which have also slated announcements at the electronics show.
Fiat-Chrysler, meanwhile, used CES to unveil a Portal concept car designed for Millennials: An electric-powered minivan with modular components that can be adapted for autonomous driving.
Inside a boxy exterior, the vehicle has an adaptable, modular “third space” that can be modified for passengers or cargo.
The company said it can be used in “semi-autonomous operation,” where a driver has the option to turn control over to the vehicle under certain highway driving situations.
The Portal uses an array of sensors to monitor conditions that can assist drivers and is designed to allow upgrades for more self-driving capabilities.
