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Consumer Electronics
The color TVs, the MP3s and DVD players etc...

Industry Profile

Think about all the consumer electronics products out there: the color TVs (not to mention the flat-screen plasma TVs), the MP3 and DVD players, the digital camcorders. Now think about all of the engineers, designers, marketers, salespeople, customer service reps, and finance gurus it takes to design, manufacture, and market all those electronic gadgets. The consumer electronics industry is big time.

Although much of the actual manufacturing is done in Asia and other low labor-cost locations, other functions have remained in the U.S. On the technical side, opportunities exist for software and electronics engineers, as well as quality assurance engineers, industrial designers, manufacturing design engineers, and IT professionals. If you're a people person-if you can design a marketing campaign, close a distribution deal with a major retail chain, write marketing copy, or help a confused consumer understand a complex product-consumer electronics companies may be good places for you, too.

You can earn your stripes at a multinational corporation like Samsung or Mitsubishi, where big money is backing big products like high-definition television (HDTV) and smart phones (a combined wireless phone/PDA). Or you can try your hand at a young start-up that's pushing the consumer-electronics envelope in one market niche or another. So before you start your job search, think about whether you like the structure and resources (and bureaucracy) that a big organization will have or whether you prefer the flexibility and cutting-edge spirit (and bare-bones budget) of a new company.

Job seekers should also keep in mind that consumer electronics are global brands, so many companies have opportunities for international positions and travel, and foreign language skills are often highly desirable. And in the U.S., though there is some concentration of consumer electronics jobs on the East and West Coasts, the industry is sprawled across the country. Many of the large companies have multiple offices to choose from, with each location housing a different product line or corporate function.

More than Just Entertainment
As it has gone digital, the consumer electronics industry has evolved way beyond televisions and stereos. Digitization has made possible some brand-new electronic toys, such as consumer-priced global positioning systems. And already established consumer electronics products such as PDAs (personal digital assistants; think Palm or Handspring), are coming out with expanded features such as the ability to send and receive email; digital camera capability; gaming capability; wireless network readiness; GPS capability; and cellphone capability. Consumer electronics products are insinuating themselves into the furthest recesses of our lives.

Intellectual Property Confusion
Since the first big digital consumer product, the audio CD, hit the market in the early 1980s, nothing has slowed the digital juggernaut, with one exception: worries about pirating-of music and, more recently, of movies. Such concerns delayed the introduction of writeable CD equipment (and digital audio tape), and the spread of the MP3 format for recording music and exchanging it via the Internet is giving the music industry conniptions. When Napster came on the scene, media consumers had the advantage over the entertainment industry, which feared for its massive profit-making ability. Nowadays, after fighting back (by cutting deals with computer and electronics makers to get them to include copyright-protection features in their products; by attacking file-sharing software makers; by suing downloaders and the ISPs that serve them), it seems the entertainment industry has the upper hand again.

Competition from Computer Makers
The consumer electronics industry is converging quickly with the computer industry. Each year, electronics products look more and more like computers-and companies that used to do business in one market or the other are now doing business in both. Take the PDA, TiVo, the gaming console, the cellphone with Internet access-all of these are essentially computers, with computer chips inside them and computer operating systems allowing them to work. At the same time, computer companies are moving in the direction of making devices, like PDAs and gaming consoles, that are essentially consumer electronics products. What this means for consumer electronics companies: Much more competition from computer companies in coming years.

The consumer electronics industry includes manufacturers of all shapes and sizes. The largest are multinational conglomerates with more than 100,000 employees and interests in many different industries. The smallest often have only one office with less than 50 employees focused on one product. In the middle are manufacturers that offer a range of products within a certain category, such as speakers and audio accessories. Because companies of all sizes can make similar products, industry observers usually break down the market by product category rather than company size.

Video
These days, all eyes are on video. As the switch is made from analog to digital technology, the market is quickly expanding beyond traditional televisions, VCRs, and camcorders to include digital televisions, digital versatile disc (DVD) players, home theater systems, home satellite systems, and set-top Internet access devices. Key players include Matsushita (Panasonic), Philips (Magnavox), Sony, Thompson (RCA), TiVo, and Microsoft (WebTV).

Audio
Vinyl may be the latest retro resurgence, but it can't stop the digital wave. Consumers can now choose from CDs, DVDs, MiniDiscs, and MP3s (a computer file format that lets you download music from the Internet) to get digital-quality sound. The proliferation of digital formats is also driving new demand for upgraded home theater systems, multimedia PCs, car stereos, and portable players. Key players include Bose, Harman International, Sony, and Toshiba.

Mobile and Wireless
Mobile electronics and wireless technology have transformed communication. Better technology and lower prices have turned high-end products like cell phones and pagers into commodities sold out of street-side kiosks. And broad market demand is fueling the race to develop the next generation of phones, pagers, and PDAs, which will use digital cellular, digital personal communication service (PCS), and wireless modems to interconnect. High-end car audio, security, navigation, and multimedia systems manufacturers are also taking advantage of the new digital technologies and making inroads in the mass market. Key players include Motorola, Nokia, and Philips.

Multimedia
Multimedia products create an interactive experience for the user by combining sound, graphics, text, and video. The personal computer is the main delivery platform for multimedia products, although the digital television will also offer a multimedia experience. Again, digital is the word to watch. For PC users, DVD-ROMs offer better speed and storage capabilities than CD-ROMs. Digital cameras save digitized images in a memory cache, rather than on film. Software plug-ins, which can be downloaded from the Internet, let users experience streaming audio and video applications on their PCs. And new video game consoles let players interact while playing games that include robust graphics and sound. Key players include Canon, Nintendo, Sony, Microsoft, and Toshiba (DVD-ROM).

Integrated Home Systems
Picture this: While sitting at your computer at work, you pull up the website for your home, check out the live video feed to make sure your new puppy isn't devouring the muffins you forgot to put back in the cupboard this morning, click a link to preheat the oven for dinner, and turn up the thermostat to warm the house. This is the smart home. Smart homes are powered by integrated home systems-electronic products that are networked together and connected to the rest of the world via the Internet or wireless technology. Players in this fledgling market include IBM, and appliance manufacturers like Sunbeam and Whirlpool are joining the fray by experimenting with products that are networkable.

Overall, the Bureau of Labor Statistics expects job growth in this industry to be a good deal slower than growth across all industries between 2000 and 2010. But the reality here is that job prospects will vary tremendously depending on the specific industry segment you're looking to work in, and on the specific career you wish to have.

If you work in hot growth sectors, like wireless devices, you'll probably be faced with many employment opportunities in the coming years. But the outlook won't be so good in more mature sectors (like household audio, where PCs and MP3 players are increasingly taking the place of traditional home stereo systems).

Because of increasing automation, production jobs and customer service jobs will probably not have a great outlook in coming years. But electrical engineers, technicians, and others involved in designing and testing the ongoing flow of new products being brought to market will face much better prospects.

A key to ongoing success in your career in consumer electronics will be keeping yourself abreast of changes in technology-by taking formal courses as well as by reading about industry breakthroughs regularly.

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