January 12, 2009

To Connect to the Internet, Just Turn on Your TV
By SAUL HANSELL
NY Times

http://www.nytimes.com/2009/01/12/technology/personaltech/12cesexec.html?ref=technology&pagewanted=print


LAS VEGAS — If there was one overarching theme from the Consumer 
Electronics Show here last week, it was that absolutely every device in 
our lives is becoming a computer connected to the Internet.

The sleek little Palm Pre phone promises to make it easy to call your 
friends by looking up their numbers on Facebook.

A new version of the Ford F150 pickup truck will let contractors check 
service manuals by browsing the Web from an in-dash computer.

New televisions from LG, Samsung and others will let viewers watch 
movies from Netflix and other Internet sites.

In two years, 90 percent of all Sony products will connect to the 
Internet, Howard Stringer, the chief executive of Sony, predicted.

These developments can be seen as more of the electronics industry’s 
constant quest for something new to tantalize gadget lovers.

But there is a darker side, too, for the companies that make the 
devices. If the most exciting thing about your phone or truck or TV is 
the Web sites you go to and the software applications you download, then 
the device itself is less important.

That is what happened to the computer industry, with its relentless 
price pressure and indistinguishable products. It is hardly an 
attractive business model, even for consumer electronics companies 
already accustomed to low profit margins.

“We are commoditizing new technology,” said William Wang, the chief 
executive of Vizio, which has become the country’s third-largest seller 
of televisions after Samsung and Sony. Now that flat-screen 
high-definition televisions have become commonplace, he said, “the 
technology shifts are not that dramatic.”

Other, more established brands beg to differ, of course. Their screens 
are thinner and their pictures are brighter, they advertise. So 
consumers will inevitably be drawn to them, they argue. And they are 
working on what they hope will be another technology on view at the 
show, one that makes mere high-definition sets seem passé: 
Three-dimensional televisions.

But the more established brands know the battleground is shifting. 
Increasingly what will differentiate one TV from another is the software 
it runs and the Internet services it connects to.

Even Nokia, which sells more cellphones than its three nearest 
competitors, says that much of its future success will come from selling 
services, ranging from music to maps, that operate on the phones.

Another approach is to try to embed computer chips with Internet 
connections, all of which keep getting cheaper and smaller, into ever 
more unusual devices. Sony introduced an Internet-connected alarm clock 
that will wake you up with your favorite music videos and traffic 
forecasts for your commute.

Asustek, the giant Taiwanese electronics company, has developed a 
touch-screen computer that hangs on a wall. It also has built a PC into 
a keyboard that lets users surf the Net on their TVs . In the future, 
according to Jonney Shih, the chairman of Asustek, everything in your 
house, even your bedroom mirror, will be a computer display.

So even as electronics makers struggle with the extremely sluggish 
economy and the relentless competition, they can look forward to finding 
ever more shapes and sizes in which to embed their gadgets.


-- 
================================
George Antunes, Political Science Dept
University of Houston; Houston, TX 77204 
Voice: 713-743-3923  Fax: 713-743-3927
Mail: antunes at uh dot edu

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