The 2012 edition of the International Consumer Electronics Show, which opens Tuesday, has already hit the limelight with Microsoft Corp. (MSFT) announcing in December 2011 its intention to withdraw from the trade show after 2012. The show usually involves a keynote address by the CEO of Microsoft apart from a booth showcasing Microsoft products. It was at this venue in 2008 that Bill Gates made official his retirement.
The reason cited by Microsoft is that their "product news milestones" are not in sync with the timing of the CES. Industry commentators have argued that Microsoft's presence was always questionable given their strength in software services as opposed to consumer electronics per se and instead speculated that the popularity of Bill Gates guaranteed Microsoft's presence at the CES.
Given that Gates also managed to pull in such bigwigs as Steven Spielberg and even Barack Obama, and that Apple Inc. (AAPL) has never been a participant at the show, there seems to be a vacuum of stellar proportions looming for the CES.
This lack of celebrity presence is seen as being compounded by the presence of only "lesser" names from the entertainment industry. While the prior-year edition featured the pop icon Lady Gaga, the biggest stars this year are expected to be actress Eliza Dushku of Buffy the Vampire Slayer fame, who has signed on as ambassador for CES's Entertainment Matters program, and also basketball player Dennis Rodman, rapper 50 Cent and the teenage singer Justin Bieber.
Even among the technology offerings, there appear to be few surefire crowd pullers. Nokia Corp.'s (NOK) expected North American launch of its Lumia 900 brand smartphone, which features Microsoft's Windows Phone operating system, is much talked-about, if only because of Nokia's lack of presence in the U.S. phone market and Microsoft keeping a low profile about its success with Windows Phone. The CEA has however dedicated two "TechZones" for wireless exhibits on the expectation of a boom in the tablet computer, electronic-reader and smartphone market.
Thus, the schedule includes conference sessions that discuss the intricacies of mobile payment technologies and the fate of the 4G network while contemplating future trends in the development of smartphones and the applications, or apps, that the devices can support.
It is here that Google Inc. (GOOG) registers its presence with its Android 4.0 operating system, dubbed Ice Cream Sandwich, which is targeted for use with both smartphones and tablet computers, anticipated to be a trendsetter by simplifying app development.
Industry pundits also see a battle brewing on the hardware front, with two competitors gunning for the processor pie. While Intel Corp. (INTC) may be the elephant in the room, it has, according to analysts, struggled with the elephantine power requirement for its processors which are a major hurdle in the smartphone sector. The possible introduction of Intel's Medfield line of processors is billed as a showdown with UK-based ARM Holdings plc (ARMH, ARM.L), which has thus far grabbed a big slice of the market and threatens to be a runaway winner in the contest.
The other big question regarding consumer electronics this year involves the next episode in the television saga. It was at the CES that the high-definition television, or HDTV, was first publicized in 1998; the show also saw a spate of 3D televisions in 2011. "Smart" televisions, which are capable of streaming and playing video content off the Internet are presently in the limelight, with Sony Corp. (SNE, SON.L), Samsung Electronics Co. Ltd. (SSNLF.PK) and LG Corp. in the fray with offerings.
The appeal of Smart TVs is somewhat muted by a shortfall of content choices and also by the high cost of models released thus far. Google, whose Google TV promises to be a solution to the content issue, may just be the one player with a chance of revolutionizing the Smart TV sector with a combination of the Android operating system and Internet based video service YouTube.
Despite its physical absence, Apple casts an indisputable shadow over every technology event. It has products in nearly every segment - the iPhone and iPad are still the hallmarks in the smartphone and tablet computer segments - and the whispers of its upcoming TV no doubt mean sleepless nights for competitors. In this perspective, perhaps, CES allows industry persons - the show is not open to the public - a sneak peek at who might possibly be the best David to Apple's Goliath-like presence in the industry.
CES 2012 kicks off on January 9 with pre-show events, and runs until January 13, at the Las Vegas Convention Center in Las Vegas, Nevada.
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