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Last updated: Wednesday, January 7, 2009

Netbooks, high-quality digital cameras and smartphones are just a few examples of what today’s consumers want and are still paying for, despite the nation being caught in a recession. With consumer confidence decreasing slightly in December and companies laying off employees in droves, it would only be fitting for the 2009 International Consumer Electronics Show to be feeling the pain of a failing economy. Officials of the Las Vegas show, however, said consumer technology spending will do OK despite the decrease in confidence. More than 130,000 people are expected to walk the show floor looking at what the more than 2,700 exhibitors have to offer. This optimism comes just one week after the Consumer Electronics Association released its most recent CEA-CNET Index of Consumer Technology Expectations, which measures consumers’ confidence in consumer electronics and technology. The index found that confidence in December decreased seven percent, to 78.3. An even greater decrease was from year to year, when the index decreased 13 percent. Not All Products Created Equally Consumers are increasingly viewing consumer electronics as a necessity, rather than a luxury, according to Steve Kidera at the Consumer Electronics Association. “They need to be connected to the Internet for work or play, need a cell phone or smartphone to stay connected, and want digital content in their living rooms,” he said. Kidera cited a number of product categories that will fare well in the year ahead, despite the economic downturn. “Consumers continue to go digital, not just for the transition to television next month, but in other products as well,” he said. E-readers (think Amazon Kindle) are expected to jump 110 percent in revenue in 2009 as consumers purchase books online and save space when they travel. Netbooks will also see strong growth, resulting in a predicted 80 percent growth in revenue, according to Kidera. “These…

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CES Execs Optimistic Despite Low Consumer Confidence

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