CES 2009: Three Booths and a Clapping Toy Monkey?
by John Paczkowski
Posted on December 5, 2008 at 11:26 AM PT
If a global manufacturer of computer hardware like Belkin’s not exhibiting at CES, who is? I posed that question jokingly earlier this morning, but turns out there’s a very real and ugly answer to it:
Not Seagate (STX).
Not Logitech (LOGI).
Not Cisco (CSCO).
And not Sanyo, either.
All six companies have abandoned plans to exhibit on the Consumer Electronics Show floor. Like Belkin, they are all opting for the more intimate and inexpensive floorspace of a Vegas hotel room. Said Seagate spokesperson Woody Monroy, “We haven’t pulled out of CES…we’re just taking a different approach.” Cisco offered this statement on the matter:
On our Q1 FY ‘09 earnings call on November 5 we announced that we will be reducing expenses for FY09 by over $1B from our annualized expense run rate, given the challenging macroeconomic environment. We are targeting reductions in travel and discretionary-related expenses, including offsite meetings, outside services, equipment, events, trade shows, prototypes, marketing and other activities. Given this focus on reducing costs, we are modifying our participation in the Consumer Electronics Show in Las Vegas in January 2009.
We have several speakers presenting in the various CES sessions, and Cisco chairman and CEO John Chambers will be delivering a keynote at the conference, as well. We are focusing our CES presence on our direct customers, press and analysts in order to create a more intimate event and reduce expenses. We look forward to an exciting CES 2009 with multiple product announcements that will reinforce Cisco’s consumer strategy. We remain committed to the consumer market, and we believe our cost control focus at this time is appropriate. In support of our CES presence, we will be utilizing Cisco’s world-class Web 2.0 collaboration technologies, such as TelePresence and WebEx, to maintain essential customer and partner communication. Cisco will have compelling demonstration areas and meeting rooms in the Venetian hotel in Las Vegas as we have for the past several years.”
Comments
What Cisco said: On our Q1 FY ‘09 earnings call on November 5 we announced that we will be reducing expenses for FY09 by over $1B from our annualized expense run rate, given the challenging macroeconomic environment. We are targeting reductions in travel and discretionary-related expenses, including offsite meetings, outside services, equipment, events, trade shows, prototypes, marketing and other activities. Given this focus on reducing costs, we are modifying our participation in the Consumer Electronics Show in Las Vegas in January 2009.
What it means:
Posted by Sam Harrison at December 5th, 2008 at 2:23 pmWe’re going to Vegas and we’re happy to let CES have us speaking and getting free publicity. But, rather than fork out millions for a booth we’re camping at the Venetian so we can get our gamble on, save a few bucks for the sexy Cirque du Soleil show (better than booth gazing). We’d also like to get more intimate with some of the Vegas entertainment aspects so the money we save will pay for that. So scru you CES and thanks for the free PR for us at Cisco. Always happy to route you.
John,
It’s a challenging time for all business segments in this country, and the consumer electronics industry is certainly not immune to the current economy. But we should look at the facts regarding the 2009 International CES to keep things in perspective. Three booths? Hardly — we’ll have 2,700 at CES this year. You note five companies whose business plans caused them to change the type of space they use at CES. But more important is that they are all still buying space at the show to meet with buyers (the average CES attendee has 12 meetings while attending the show) and demonstrate new products. It might be even more interesting to your readers to explore the more than 300 companies that are exhibiting on the CES show floor for the first time in 2009.
And as for the toy monkey — it’s a cute picture, but if we’re talking about CES, you should put up photos of the VCR, DVD player, HDTV, HD radio, OLED, and any other technology innovation you can think of — because they were all rolled out at CES. Anyone with serious interest in the technology industry understands the importance of attending CES this year — the next generation of technology will be on view at our show.
John, we look forward to welcoming you to CES on January 8-11. And when you can’t find a toy monkey on the show floor, come find me — I’ll gladly buy you one at a local toy store.
Jason Oxman
Posted by Jason Oxman at December 7th, 2008 at 9:54 amSenior Vice President, Industry Affairs
Consumer Electronics Association