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THE 1999 CONSUMER ELECTRONICS SHOW
Smart new, easy-to-use products free employees to work in any location

By: Marlene Prendeville

The world's largest showcase of consumer technology, the 1999 Consumer Electronics Show (CES) reflected the growth and technological innovation of an industry in the midst of a digital revolution. The momentous launch of digital TV, the growth of the convergence market, emergence of home networks, and exponential proliferation of new digital technologies such as DVD were among the highlights of CES; now in its 32nd year. Several products on display are capable of integrating digital television (DTV) broadcasts with Internet content. The year 1999 will see 900MHz cordless telephones squeeze out most 25-channel suppliers; caller ID will become a standard feature, headsets will arrive in a big way, and the multi-line business will continue to grow, fueled by the consumer rush to the Internet. 

Exhibitors described CES as "fantastic" and "fabulous", an indispensable part of their marketing efforts, offering tremendous exposure to their current and potential customers. "I have been able to meet with every one of our major accounts," said John McDonald President of Casio Inc. 

Gary Shapiro, President of the Consumer Electronics Manufacturers Association (CEMA) and CES producer said: "CES continues to be the place where everyone in the business of technology can get the information and build the relationships they need to succeed." 

The growth of industry was reflected in record attendance with more than 1,800 exhibiting companies, showcasing technologies in a record setting 1,090,000 square feet of space. Final attendance numbers increased significantly at 97,334 up 6.5% over last year. Darrell Issa, CEMA Chairman, said the industry anticipates a record year with projected overall 1999 factory sales reaching a new record of $79 billion. (1998 sales reached an estimated $75 billion.)

Keynoter Howard Stringer, CEO Sony Corp., highlighted open architecture, flexibility, and universal standards as crucial. "Digital devices in the home must be supremely easy to use, and consumer electronics companies, retailers and others must achieve an unprecedented level of cooperation in creating this new environment and bringing it to the consumer." He called upon attendees to change the way we do business, embrace open standards such as the open architecture developed by eight consumer companies -- Matsushita, Grundig, Phillips, Hitachi, Sharp, Thomson, Toshiba and Sony -- called HAVi. This architecture will allow consumer electronics, PCs/other devices in the home to be interconnected and inter-operable. He emphasized adoption of IEEE 1394, or iLINK, the high-speed digital interface cable to link a multitude of devices in a home network.

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Presenting a Universal Plug and Play initiative, Microsoft's senior VP of consumer strategy, Craig Mundie, outlined his vision of the digital home of the future, where portable hand-held devices, electronic tablets, home PCs, TVs and Auto PCs were able to share information, resources and services without manual configuration. 

Telephone Market
The combined household penetration of wireless devices, phones & pagers, increased in 1998. Phonex launched its unique "Easy Hang Up" accessory, which politely and easily terminates unwanted phone calls. Simply push a button and replace the receiver. The caller will hear: "Sorry, this number does not accept this type of call"! The Phonex Wireless Modem jack turns any electrical outlet into a phone jack. 

Cobra offered free headsets with its 900MHz cordless phones. Kash 'N Gold's novelty phones include a Michael Jordan limited edition signature model. Panasonic announced five new 900MHz cordless models; Sony introduced a digital standalone answering machine; and Thomson offered a 25-channel line for 1999. In its GE line, Thomson showed a 900MHz cordless handset/headset model. Uniden displayed a new 2.4GHz, and is also offering a broad selection of digital spread spectrum 900MHz. CSI/SPECO displayed its convenient 2.4GHz Wireless Camera System, ideal for any residential home security application. 

HDTV (High Definition Television) & DTV
This new digital form of television will accelerate throughout 1999. Digital TV is a broad umbrella term and HDTV is a sub-part of the overall. As defined by CEMA, HDTV has exclusive wide-angle sets with the 16:9 aspect ratio. Sony introduced a fully integrated HDTV rear-projection sets and unveiled the D8 system that allows DV recordings on conventional 8mm tape. Toshiba introduced several HDTV-ready widescreen rear-projection sets and a DTV set-top decoder. They also unveiled their next-generation DVD Video player line with two twin-tray DVD; one of which will offer progressive-scan output to connect with many DTV-ready television sets. Audible displayed a MobilePlayer II Web Recorder, which plays digitized spoken audio downloaded from the Internet. It has 16 MB of Flash memory, and can play back through headphones, transmit to FM radio, or plug into a cassette deck. 

CEMA research predicts Digital Television (DTV) sales of 150,000 units by the end of 1999, and another 600,000 units in 2000. Faroudja showed its RP-5800 DTV-ready rear projection set capable of presenting 720p and 1080I formats. Hitachi showcased their 1999 DTV product line featuring the 
long-awaited 61W" fully integrated rear-projection set. Philips rolled out
model 64PP9901, a 64" fully integrated widescreen HDTV rear projection receiver with 9" CRTs for picture clarity. 

Panasonic marketed a two-piece HDTV-ready set and DTV set-top

 decoder component solution. Pioneer featured a two-piece 64W" rear-projection set, and plug-in set-top receiver module SHD-07. Runco offered a range of nine HDTV-ready display products and a new three-chip DLP-front projector. Samsung claimed its Tantus Digital HDH551W 55" widescreen rear projection set was the first to hit select retail outlets. The next two Tantus Digital models will incorporate a trio of newly developed Fero LCD (FLCD) panels. This new technology developed by Denver-based Display Technology, produces 18% more reflected light than conventional TFT LCD designs. Sharp presented three HDTV products along with TU-DTV1000 and 64LHP5000 64W" fully integrated rear projection sets, and a new HDTV-ready 64W" widescreen projection that will connect with Sharp's set top DTV tuner. Sanyo presented "product concepts", its DTV set-top-box capable of receiving all 18 formats and outputting 1080I HDTV format. Sony expanded its digital TV lineup with a fully integrated rear-projection HDTV receiver, Model KWP-65HD1 with 65" widescreen. Thomson demonstrated RCA and ProScan direct-view multi-media monitors with 480p capability, and its first HDTV-capable direct-view sets, including the ProScan 61" fully integrated HDTV rear projection set.

Unity Motion refocused as a provider of ATSC digital programming via satellite, displaying its HDR-1000, which receives all 18 ATSC formats. Zenith showed the 64W" HDTV rear-screen projection set, its set-top DTV tuner and Pro 900 CRT front screen video projector. 

Cellular Phone's Mass Market
Nokia and Ericsson initiated a sophisticated marketing campaign with glossy ads and retail promotions designed to reach all kinds of consumers. Nokia focused on ethnic/minority marketing to advance its "Connect People" brand theme and will be using Niki Taylor's alluring image to exemplify its design and leadership. Arch rival Ericsson linked up with pop diva Celine Dion's "Power Voice" tour as a brand awareness vehicle. Motorola aggressively continued its "Wings" brand focus by expanding ties with CART racing. NEC says it doesn't have deep pockets and sees its role as more of a carrier support system to piggy-back into corporate brand initiatives in sports marketing. It will support GTE's FamilyNet and expects to partner on more promotions similar to BellSouth's "Air To Go" which packaged prepaid airtime as a holiday/impulse buy. Wireless handset maker Sony will focus on providing promotions such as the "Now You're Talking" campaign. Mitsubishi Wireless will execute a menu of home-grown promotions, local sports teams, event tickets and more localized promotions in which store managers have more input for customization. QualComm aims to deliver more highly integrated marketing opportunities through its Indy Racing league affiliation and QualComm Stadium. Newcomer Samsung hopes to harness event marketing to hit all demographics. Philips Consumer Comms., is looking for an OEM partner to help produce handsets. It has not declared 1999 promotional programs with Nascar or Disney, as yet.

Unisar demonstrated Bebe Sounds prenatal listening kit, which amplifies and records the baby's sounds heard within the mother's womb. It allows the mother to record her own heartbeat, which has a soothing effect on her newborn. Unisar's TV Listener, a cordless TV headset, provides an alternative for couples who must compromise when one spouse wishes to watch TV in bed, while the other just wants to sleep! 

Faster Processors to Hit Desktops, Notebooks
Intel launched speedier Celeron desktop processors 366 NMHz & 400MHz. Its Katmai processors are projected to have speeds of 450MHz and 500MHz. AMD announced its fastest K6-2 chips and new processor Sharptooth, or the K6-3 for notebooks. Sound Advance Systems announced sound system harmony to residential interiors with its SA2B invisible loudspeakers, Installation Compensation Circuit (ICC) processor, and FPS-1000 Flat Panel Speaker. Its latest SA2B loudspeaker has two-way, full-range devices, invisible when installed within walls by using standard wood or metal studs. Infinity Systems introduced new premium loudspeaker products to reinforce its commitment to high-end expertise. Its flagship, Prelude MTS, incorporates a built-in 500-watt B-Link amplifier and unique Room Adaptive Bass Optimization System that enables users to overcome the under-100Hz room resonance that often detract from the speaker's performance. SoundPoint Pro brought Polycom's corporate-quality, full-duplex audio conferencing capability to the desktop. With full business phone features and multi-line functionality, users can switch 360 degrees from handset to conference mode at the touch of a button. Polycom's WebStation presentation systems enables both local and remote group meeting participants to effectively present and collaborate in group meetings from any location via the Web. 1WEBCAST, a San Francisco-based Web and broadcast-quality video production company, displayed its portable studio to Webcast interviews with technology experts and journalists

In the new millennium, the 2000 international CES -- Your Source for Workstyle and Lifestyle Technology, will be held January 6-9, 2000 in Las Vegas. Stan Shih, CEO of Acer Microcomputers of Taiwan will deliver the keynote: 'Your Source for Workstyle & Lifestyle Technology'. The year 2000 will be the world's biggest showcase produced by CEMA, a sector of the Electronic Industries Alliance (EIA), a 75-year-old Arlington, Virginia trade organization. All profits are reinvested into industry services, including training and education, product promotion, engineering standards development, market research, and government and legal support.