Consumer Devices Can Help Redistribute The Wealth

Help stimulate the economy—and the industry—and buy something wireless for the holidays.

I’m sick and tired of hearing about the continued market downturn and all the related doom and gloom. Just like all the hype during the election, this bad news is being overemphasized and the media (not me, of course) seems to be building it up and making it seem worse than it is. As comedian Dennis Miller says, “That’s just my opinion. I could be wrong.”

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Yes, I know it’s bad by looking at my 401k and IRA, but I still believe the economy will come back, sometime. Yet I can’t help but think the excessive reporting and continuous rehashing just panics people and makes things worse overall. Cool it, you guys.

Up for Wireless, Down for Electronics

We will see some downturn in the wireless industry, but it may be less (with lower growth instead of a loss) of a hit than other electronic sectors. Market research firm Ovum expects mobile connections and revenues to rise 6.3% in 2009. That’s less than previous years but still great in a down economy.

Another bright spot is the machine-to-machine (M2M) segment. ABI Research estimates that 95 million cellular M2M modules will ship in 2013, representing significant growth over the next few years. About 34 million of those modules are expected to go into telematics (vehicular use) applications and 39 million into telemetry (monitor and control) applications. That’s a great benefit to manufacturers and service providers.

In another wireless area, WiMAX is still moving forward. Sprint Nextel got an okay from the Federal Communications Commission to merge its XOHM broadband wireless service spinoff with Clearwire to form a nationwide broadband wireless unit. Clearwire stockholders blessed the deal recently, so the spinout and merger could be completed by the end of the year.

WiMAX is now online in Baltimore and Chicago, and Washington, D.C. will come online next year with Sprint XOHM service. Clearwire started on the west coast with service in Portland. Hopefully the funds will be available to roll that service out nationwide. There are plans for Atlanta, Las Vegas, and Grand Rapids, Mich.

While the PC and semiconductor industries will be down in the coming year, wireless could rise above them and be a stabilizing factor in the electronics industry. People love their cell phones, and that signals continued good news for the wireless segment in general.

Spread the Wealth

President-elect Barack Obama may believe in the concept of “redistribution of wealth,” but I’m not sure about how much of that will actually happen. Potential presidents always seem to promise things they don’t have the direct power or authority to deliver. While they can influence events, Congress makes most of the big money decisions.

With Congress primarily Democratic now, maybe Obama can do what he wants, even though it probably isn’t the best thing for the country. I’m not a big believer in wealth redistribution, but I do think that we can all do our part by buying an electronic item for the holidays. That will send some of your wealth to multiple people and places while simultaneously helping our own industry.

I made my contribution this past week by buying a new home entertainment center. My old 27-in. TV set that I have used since 1991 died in a flash last Saturday. I got my money’s worth out of it for sure, so I didn’t hesitate to get a new one. I finally dragged myself into the 21st century with the latest consumer electronics gear—amazing and complex stuff. The electronic interconnections were pretty straightforward, but I didn’t realize that a decent HDMI cable costs almost $100.

The hardest part was the mechanical assembly of the TV stand. The mechanical part of any project always seems to be the most difficult and time consuming. Of course, that’s my take from years as an electronic engineer. Think of all the mechanical design that goes into a cell-phone handset. It’s certainly more costly in terms of time and money than the electronics.

Anyway, the new system works well. Now I have to spend more time with the three remotes to figure out the 1015 possible settings and selection options. Then I will learn to use the digital video recorder (DVR).

What are the hot products for the holidays? Big-screen TVs are still the way to go if you don’t have one yet. Prices are good right now. And don’t forget that analog TV goes off the air on February 19, and you may need a new digital set anyway. Now is a good time to buy.

Cell phones are another good item, with lots of new models to choose from. The T-Mobile G1 Android phone from HTC is now available. Then there’s the new Instinct from Samsung and the Xpedia X1 from Sony Ericsson. RIM also has some new models like the Curve and Bold and the new touchscreen version called the Storm (Figure 1).

The Storm is RIM’s answer to Apple’s iPhone. Its unique touchscreen provides tactile feedback, making typing easier. It looks like a great smart phone, though its only drawback is that it does not have Wi-Fi. The 3G Apple iPhone is always a good choice. I love mine. If you haven’t upgraded to a smart phone yet, this may be a good time. Their functionality is better than you think, and the more you use one of these phones, the more addicted you become.

With a camera, GPS navigation, full e-mail, and Wi-Fi Internet access, you never get bored or out of touch. I suspect some of you also will be attracted to the mobile TV options. A few phones now provide mobile TV service, but most aren’t that popular yet. This coming year will offer up some more mobile TV options, but it may be 2010 before we see actual digital ATSC TV on a cell phone in this country. We will be covering that in the coming year.

So that’s my plan for wealth distribution. Be positive and buy something electronic or wireless. Other than that, I wish you a pleasant holiday season and do have hope for 2009.

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