International Markets

	No margin of error: Samsung's new TV.

While the show was a platform for new devices in a relatively upbeat consumer environment, the issue of production costs - particularly of labour costs in China's Pearl River Delta - remained a nagging issue for producers keen to prop up margins while coming up with better devices.

Said Lai: "if you talk about some of the low-end [electronics], maybe the eastern parts [of the Mainland remained more viable]." However, Lai's company manufactures high quality computer peripherals, connectors and batteries.

Lai: staying with the Mainland.		Dong: base in the PRD.

SiSi Dong, Overseas Sales Manager of Hong Kong Manufacturing agreed. Her company plans to stay in southern China. Dong presented colourful USB drives and computer peripherals at this year's CES.

Audio sytem from Artech.

Many, like Dora Ng of Artech: Supersonic Electronics (HK), which manufactures high-end audio, believed absorbing costs or passing them along may be their only alternative. Ng's company displayed Bluetooth home audio products.

Indeed, most Hong Kong companies have not changed their strategy in regard to US and European trade partners. Although a few have been determined to diversify their markets, many see the current economic downturn as only a temporary slump.

Chris Allen, iDevices CEO, said his products are manufactured in Shenzhen, and he has no plans to move to other parts of China. He also noted that he had cut prices on some products by as much as 20% to create incentives.

Allen's iShower was an eye-catcher at CES this year. The device streams music via Bluetooth technology into a waterproof device that can be attached to the shower. The iShower can stream up to 15 hours of audio within a 60 metre range (and is priced at US$99).

Allen: cut prices.		iShower device.

Largest show ever

International CES 2012 opened its largest fair on record this year. According to CES data the show hosted 153,000 visitors, with 34,000 international attendees. That is an increase of 2.3% overall and a 13.3% increase in international attendance.

	Technology demand still strong.

The average US household now has 24 consumer electronics products with industry sales projected above US$190 million.

Approximately 20,000 new products were debuted at the show this year and many featured high levels of connectivity via wireless technology, Bluetooth, 3D/OLED display and cloud computing.

These devices enable consumers to operate electronics, household appliances and automobiles using smart technology.

The smarter the better

iproducts with high visibility.

Consumer demand continues to push market innovation and competition. The advent of Facebook in 2004 with its high level of connectivity and integration demonstrated the consumer's receptivity to a connected world.

Since 2004 Facebook has expanded from a private pastime into a multimillion dollar business with nearly 800 million users.

Additionally, Apple's iPhone presents a consumer-friendly interface where users can access music, media, web content and mobile communications in one device. Google was among many others following Apple's lead.

Samsung introduced several OLED TVs and smart TVs this year, which featured facial recognition and hand and voice response technology.

	Cooley: consumers have more options.

LG also presented a 55-inch OLED HDTV which was awarded the Best of CEA Award. The TV uses self-emitting diode pixels which are said to be safer for the environment also providing deeper and richer colour variation.

"This is a great time to buy a TV," said BestBuy CEO, Brian Dunn in a CES 2012 Super Session: A Global Perspective on Retail. "I don't know why you wouldn't buy a TV now."

However, 2011 showed flat TV sales. Brian Cooley, Editor at Large and Analyst at CBS Interactive believed he knew why. He theorised that consumers have more screen options now and that time spent at a computer, tablet PC and smartphone cut into the television market share.

Smart TVs and new OLED display technology could however help to boost TV sales.

According to Samsung, one of the key components of "smart" is applications. Currently Samsung has over 14,000 apps.

Smart features and higher prices.

Samsung also holds annual competitions for app creators which underscores a growing market for app developers. Apps bridge the digital divide between devices over a wide range of smart platforms.

Unsurprisingly, companies of all sizes have been able to cash in on the booming app market.

Social gaming app developer Zynga was able to raise US$1 billion in its initial public offering on Wall Street last year.

The app to replace gaming systems

John Bergman, President and CEO of Guild Software (a US-based SME) has created an app for the iPad and tablet PC that he predicts will replace game systems and consoles within six years.

Bergman said his app works intuitively with the iPad or tablet PC to make gaming even more interactive.

John Taylor, LG Vice President of Public Affairs and Communications believed consumers will be attracted to the new smart features and buy in spite of higher prices.

"It's like everything else in our business," Taylor added. "Many of the features start with the higher end products but it doesn't take long for them to gravitate to the entire product [line]."

	Galaxy Note.

The changing landscape of consumer electronics may also have other ramifications that will affect the market. Cooley of CBS Interactive noted: "we're seeing a lot of things that are being replaced by the smart phone, like navigation, cameras and many other products that used to be stand-alone."

Samsung's highly acclaimed Galaxy Note tablet PC demonstrated Cooley's point. The Galaxy Note combines a tablet PC and a mobile phone. It has a 5.3 inch WXGA display, image creation software, voice and LTE data communication, and ranges in price from US$400 to US$700.

Differentiation and skilled manufacturing will be key for retailers and manufactures that will want to offer a product that stands apart from the competition.

US-based Soundmatters launched what it claimed was the smallest subwoofer ever made at CES 2012. The foxLO subwoofer is compatible with Apple products and fits the palm of the user's hand - and demonstrates the sound quality of much larger audio devices.

FoxLO subwoofer.		Thomas: outperformer.

Karen Thomas of Thomas PR believed the foxLO outperforms every other portable speaker on the market.

Consumer demand is fuelling the current technology boom. Opportunities in software, cloud computing, hardware, advanced display and wireless technology are at the forefront of almost every industry.

from special correspondent Lela Winston, Las Vegas