In yesterday’s post, I griped about the difficulty some consumers have when trying to recycle old electronics goods. During this week’s highly-covered Consumer Electronics Show, Samsung Corp. revealed an idea that would go a long way toward cutting back e-waste. But it could also cut back sales opportunities for the supply chain.
The idea, as described by The New York Times, is upgradeable TV. Instead of buying a new TV every 6.7 years (Samsung’s estimate), consumers would buy a small box (the Evolution Kit) attached to the set and accompanying software. Every year, the content and performance of the set would be improved.
In spite of anticipated record earnings for 2012's fourth quarter, Samsung feels it doesn’t sell enough TVs. Consumers haven’t bought into some of the gimmicks manufacturers are using to sell more sets, such as 3D TV. This year at CES, manufacturers are super-sizing their sets, offering better resolution and even OLED technology, but will these spur another round of massive TV investment?
Probably not anytime soon. TVs were a huge seller during the holiday season because frankly, HDTVs are dirt cheap. Thirty two-inch sets were selling for something like $139 if you were willing to go shopping on Thanksgiving Day. They’ve gotten cheap enough that the average US consumer can have a set in every room, and I know several families that do.
So what is it going to take to replace all these sets? Something along the lines of HDTV. I remember writing about how HDTV would revolutionize the industry back in the mid-1990s -- Panasonic was showing them at CES around that time. It wasn’t until 2000 or so that consumers began buying HDTVs in volume, in part because of price and in part because of content. There wasn’t a lot of HD programming around in the mid-1990s.
I don’t think Internet TV is going to change the game, either. Sure, it will be nice to not hook up the PC to the TV for Internet programming, but it’s not such an inconvenience either. I have a 42-inch HDTV that’s six years old, and even though its resolution is nowhere near today’s standards, it’s still a pretty good set. By Samsung’s estimates, though, I’m due for an upgrade.
If upgradeable TV takes off, Samsung would own a significant portion of that market. Samsung is the largest manufacturer of LCDs in the world, the technology still used in most TVs. It’s also investing heavily in LED, which I think will replace LCD more for its energy-savings than its resolution. LED and OLED TV is gorgeous, but still pretty pricey. Energy conservation, as well as recycling, is going to be a big part of consumers’ lives going forward. So it’s safe to assume a lot of people will eventually own LED or OLED TVs.
So Samsung would supply the TV, the upgradeable box, and the software for the device. It would pretty much have a lock on the hardware. It wouldn’t sell new TVs every year, but it will sell something. It’s an interesting idea.
On the other hand, Samsung could shut out the every-six-years' opportunity for any vendor that’s currently part of its supply TV chain. Its Galaxy Note carries parts from Intel, Murata, Atmel, Skyworks, Winbond, Maxim, Silicon Image, Doestek, and Wolfson. (I haven’t seen a TV teardown analysis in a while). Presumably, upgradeable TVs will need a whole technology inside to manage the upgrades each year. Getting designed-in once might not be enough.
Do you think upgradeable TV is likely to catch on? If so, is it good news or bad for the supply chain?
One of the benefits of upgradable TV should be lower cost because the consumer is willing to retain his choice electronic and so the manufacturer should be willing to reward them.
I agree 100% in buying things that last, even if they are not the latest version. I wish I could afford to replace my phone, TV, fridge, computer etc. every time something catches my fancy...then again, even if I could afford it, I'm not sure I would. The stuff I have now is better than the stuff I had a few years ago and better yet, I already know how it works. Incremental upgrades are not engough incentive, for me, at least, to junk electronics that still work well
Well, unfortunately not until it is the only option left.
Stupid? Yes. If we would work now on what we will eventually have anyway, it will be so much less painful.
This is not a new scenario. In the past, almost all equipment was upgradable and repairable. It was so because the cost of the equipment was so high and scarce that anything else was unthinkable.
We will get to that type of situation again eventually when resources are scarce.
It is just a matter of time.
But, until then, we will continue to create a mountain of garbage out of a river of oil.
But, maybe, just maybe, someone with adequate finances and a heart will see this post and do something about it.
I doubt it, the likehood of someone having money and a heart are as like as frost at the equater in July.
Negative view? Yes. As long as money trumphs morals, very negative.
@EBNblogger How soon do you think such a set up will become available? As for me, I'm always for making things last rather than just throwing them out when a new model comes along.
Barbara, upgradable TV is a good option provided technology or updation is happening only in software side. If the updations are happening in hardware parts like monitor/screen, sound system etc, then it cannot be addressed by such evolution kits. A mere replacement is the only possibility.
EBN Dialogue enables and encourages you to participate in live chats with notable leaders and luminaries. Not only editors and journalists, but the entire EBN community is able to comment and ask questions. Listed below are upcoming and archived chats.
Archived Dialogues
Thailand Stages a Comeback Join EBN contributor Jennifer Baljko on Thursday August 23, 2012, at 11:00 a.m. EST for a live chat on how electronic manufacturers in Thailand have shored up their supply chain to reduce the impact of future natural disasters.
Euro-Crisis: What It Means for High-Tech Firms Join EBN Editor in Chief Bolaji Ojo and Contributing Editor Jennifer Baljko on Thursday, July 12, at 10:00 a.m. EDT for a Live Chat on high-tech and Europe's economic difficulties.
Microsoft Surface: Potential Winners & Losers What are the implications for the electronics industry supply chain of Microsoft Corp.'s decision to launch its own tablet PC? Join industry veteran and EE Times' systems and OEM expert Rick Merritt on Tuesday, July 3, at 12:00 pm EDT for a Live Chat on this subject.
Join EBN contributor Jennifer Baljko on Thursday August 23, 2012, at 11:00 a.m. EST for a live chat on how electronic manufacturers in Thailand have shored up their supply chain to reduce the impact of future natural disasters.
Peter Drucker famously said "Trying to predict the future is like trying to drive down a country road at night with no lights while looking out the back window." Yet in the razor's-edge world of electronics—with a lean supply chain and just-in-time demands—the need to know the future is vital.
You've heard the saying "the No. 1 supply chain risk is your people." That hasn't always been the case. But today's complex global supply chain requires a new type of multitalented employee. It's one who understands, finance, marketing, economics, is savvy with technology, graceful with relationships and can think analytically.
Where are these people? Are universities properly preparing the next generation supply chain professionals? How do train your existing workforce for these new, demanding positions?
Brian Fuller, editor-in-chief of EBN, will lead a 60-minute Avnet Velocity panel discussion that will ask and answer these and other questions swirling around today's supply-chain talent challenges.
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