CES 2020 analysis: the future is happening today

The market of technological products and services is one in growth as never before has been testified in history. The adoption of these by Homo Telecom follows the vertiginous pace of progress in these developments and is observed even at a point of new acceleration due to the Internet of Things (IoT).

That is why it is not surprising the charm of the first week of the year where manufacturers, laboratories, developers and many more meet, all but “on foot” consumers in what we could call the electronic consumer fair.

The term “market” refers to the geographical or virtual space in which supply and demand, technological, meet and interact in the case of this meeting at the beginning of each year. However, this is actually a meeting of the agents on the supply side, final consumers have no place, except in the name of the event.

The Consumer Electronics Show (#CES) has been, since its first edition in 1967, the showcase of technological innovation for the world as a whole. Among the advertisements that have been raised throughout its history are, among many others, the Nintendo video game console (1985), high definition televisions (1998) and tablets (2010). In fact, a great majority of the disruptive technological products and services we know and use today have been presented to the world at this fair.

These consumer electronics products are not just goods that we use for a finite time, we replace or dispose of. But it is about devices that have completely transformed our communication, connectivity and entertainment paradigms.

In the 2020 edition, held in Las Vegas from January 7 to 10, it showed again the advances and future technological trends to be adopted by consumers in the short, medium and even long term. There were numerous products presented at the event, which highlighted the applications of 5G and the Internet of Things (IoT) in different areas such as entertainment, automotive innovations, gadgets for health, home, robotics and intelligence artificial, among many others.

Continue to anticipate the new market configuration that will result and the adoption process of the products or technologies that were presented at the event. Rather than focusing on the launch of disruptive products, this year's CES witnessed the evolution and maturation of technological innovation that, without a doubt, will transform consumption patterns as the adoption of these advances is massified of consumers.

Technological Innovation in 2020

In 2019, the first operational implementation steps of 5G technology took place.

CES 2020 continues with the promotion of this revolution in wireless communication, now with the implementation and consolidation of products that integrate this technology. Together with the 5G we expect the rapport with other technologies such as Artificial Intelligence (AI) and IoT. This binomial combined with the connectivity of 5G has opened new opportunities for companies and industries of transport, appliances, agriculture, robotics, wearables, among others.

With the arrival of 5G in the networks and gradual incorporation into equipment, it is anticipated that the entire ecosystem of smart devices will be integrated into a single network, so that the approval and integration between manufacturers is essential for the development of technology.

About everyday devices such as smartphones, tablets and laptops, the multi-manufacturer prospective standard is increasingly composed of double, foldable and flexible screens, among others. Although some of these ads were conceptual prototypes, that is, they have not materialized and massively launched to the market, they already begin to generate expectations of functionality and application development to begin to enter the market and generate preference among consumers for these devices.

At CES again the cars were central stars of the event. On the one hand, consolidated automotive brands such as Mercedes-Benz and Ford, delved into the concept of electric and intelligent vehicles, while among the biggest surprises came from Sony, with the presentation of the electric car prototype. Although its production will not be immediate, it served as a showcase for the technologies it offers in terms of screens, cameras and sensors.

Autonomous cars and transport systems continue to expand their presence in the technological ecosystem, complemented by the integration of amenities and luxuries inside the car.

As every year TV developers continue their innovation trajectory, this year with an emphasis on 8K technology that will continue to expand both the audiovisual experience and its market. In addition, new radical designs such as the ultra-thin screens of the LG Gallery series abounded as usual where a 65-inch TV will have a thickness of 20 mm or the Samsung 8K TV where 99% of its front surface will be screen and an incredibly thin design with 15 mm thickness.

The cost of acquiring these innovations could exceed the budget constraint for the average consumer. However, 4K technology is expected to intensify its adoption, while new technologies will continue to be luxury products for demand segments with high revenues and intensity of technological consumption.

In the processors market there is a strong competition between AMD and Intel, with the arrival of AMD Ryzen third generation processors for laptops, being the first AMD laptop chips. On the other hand, Intel will seek to compete with its own graphics cards, after years and years letting Nvidia and AMD decide the future of this key component of our computers. On the last day of CES 2020, the company gave us the first images of the Intel DG1, the company's first discrete graphics card in two decades.

A peculiar and disruptive issue was the presentation and open display of sexual products with technology, which seems to be the beginning of a market with a great future, based on the stigmatization of sexual technology by the Consumer Technology Association (CTA by its acronym in English) organizer of the event. It is worth remembering that, in its origins, this fair had predominantly an erotic-technological application component, which today is back in some proportion.

Finally, a launch that could represent a radical change in the streaming and audiovisual content market was that of Quibi, a platform that will arrive shortly with an offer of videos or video clips of 10 minutes or less called “quibi”. Its main differential and value offer compared to YouTube or Instagram TV is that the content will be generated by celebrities and Hollywood stars in such a way that the content is of quality.

The success or failure of the products and technologies presented in this event will depend on the adoption capacity in the established market. In the case of Quibi, you should try to direct your strategy to generate a network effect that generates a massive adoption of the service, for which you must rely on a platform that allows users to interact with content creators.

For companies that develop smartphones and tablets, it will be an important and decisive year for the future of folding screens and will be a set of strategies between these companies to achieve the product that generates confidence and preference for this technology and consolidates a basis for future development. this.

It will be several more years before we have 8K screens in our homes, folding phones in our hands and cars with artificial intelligence on our streets. The main barriers to adoption in the short term for the consumer continue to be the price of these products and the availability of alternatives and similar technologies at affordable prices.

However, it is necessary to be aware of these technological advances, since they will begin to delineate consumer trends, market and future investment strategies that are decisive for the development and consolidation of current and new markets.