While manufacturers and vendors trumpeted the latest and greatest features and functions of their new offerings, many also established plans to deepen their dealer programs by rolling out more training and demo units to help smaller dealers understand and sell more sophisticated products. In turn, dealers reacted to the products with a mix of outright enthusiasm and guarded optimism. What follows, is the Dealerscope wrap-up of the different products, technologies and vendor strategies announced at CES 2007 and how they’ll affect the retail channel throughout the coming year.

CES: The View From The Retail Channel

Tom Galanis, vice president of operations and director of audio buying at 6th Avenue Electronics, a broad-range electronics retailer based in Springfield, N.J., was among the enthusiasts. “The most exciting thing at the show was the mix of computer technologies with the A/V products,” Galanis said, referring to networking technologies that enable the distribution of digital music, photo and video files from various devices to multiple rooms. “The next step is the marriage of IP-based devices and content, backed by flexibility and price performance.”

The influx of less expensive products and more sophisticated technologies being delivered with greater speed to the mass-market poses both big opportunities and serious challenges to dealers of all sizes, said industry leaders who attended CES. Dealers translate the opportunities to selling a greater variety of products with richer feature sets to a more diverse customer base.

The variety of lower-cost products, however, is forcing dealers to adjust their business models by selling more product to offset falling product margins; choosing higher margin products, which become commoditized at a faster rate than ever before; and developing and managing value-added services, such as installation and warranty and credit programs, that give them a competitive edge and bring them closer to the customer.

“Basically companies like Control4 and Sonos open up possibilities for us because we can add more rooms to the total sale, sell more labor and programming services, push more speaker wire,” Galanis said. “The price drops also allow us to speak to more people and then we maximize our profitability by attaching the audio sale.”

Bill Skaer president and CEO of Eric Grundelman CoolAV, a high-end home entertainment integrator in Mesquite, Texas, falls into the “guarded optimism” category, viewing many of the products released at CES as a “double-edged sword.” On one hand, the new companies and their push into broad-line retailers drive awareness. On the other, PC-centric companies developing Microsoft-based media servers and home entertainment PCs, drive margins even lower, he said. “I’m a little concerned about computer-type companies coming in because they’ll take the market to where the is no profit,” Skaer said.

On the flip side of the supply chain, manufacturers are turning toward a variety of retailers to reach new markets. Many companies exhibiting at this year’s CES, especially those with IT backgrounds, are beginning to extend dealer programs—including marketing, training, demo and incentive programs—from the big-box retailers to more regional, independent and specialty retailers.

Executives from technology companies such as networking and storage vendors Cisco Systems, Buffalo Technology and Netgear, processor giant Intel, and a variety of control system developers, said as converged products and home networking continues to gain strength among consumers, they will broaden their reach into retail to win new customers.

“Life|ware is a software system that allows almost any dealer to create a broader package,” said Mike Seamons, vice president of sales and marketing at Exceptional Innovations, which is rolling out a lighter version of the company’s flagship control system to Best Buy and other retailers that meet certain system design and installation criteria. “Retailers that are ready to make that type of system come alive in the store are the ones we want.”

Control4, which is already selling the full line of its control solutions through such retailers as Tweeter, Circuit City and Best Buy’s Magnolia Home Theater stores, is also looking to branch out to qualified retailers. “There’s still a huge opportunity to gain the heart of the customer,” Control4 CEO Will West said from the company’s busy booth. “The market is so much bigger than the current channels can take advantage of.”

Audio Lives Loud, At—and Around—CES

During a CES dominated by flashy flat panels and the bravado of the one-upsmanship in the “inch wars” that accompanied video screen introductions, audio held its own. There was much innovation to be seen in high-end speakers, wireless innovation, networking and connectivity, and (of course) iPod-friendly solutions.

“Some people look at iPod as evil—and it isn’t at all,” Kevin Zarow, Marantz’s vice president of marketing development and product development, said during D&M Holdings’ group display at the Aladdin Hotel. “It’s interesting people in audio again. And once you get a captive audience, a receptive audience, retailers can go anywhere with it.”

“What we hoped to achieve with these demos was to address folks outside our industry,” said Kathy Gornik, president of Thiel Audio. “The prevailing wisdom is that ‘good-enough’ audio is good enough. Our goal was to demonstrate the difference. “You can make the generalization that with many categories that reflect higher quality, the margins are almost always greater,” she added. “There’s great potential for value-added sales for dealers with high-end audio, if they can learn to inspire and educate consumers. Once they get hooked, they get addicted.”

That message was not lost on other companies. Some focused on no-holds-barred technology showcases. One example was JBL’s mammoth-sized Project Everest DD66000 two-piece system, selling at $30,000 to $35,000 each (and sounding like a million bucks); another was the unusual JVC 12-sided, ball-shaped dodecahedral “Pulsating Sphere Speaker” prototype.

Others, such as Definitive Technology, PSB, KEF and Atlantic Technology, chose to introduce new flagship offerings while keeping their designs and pricing in the real world. Definitive’s new top-end model is the Mythos ST SuperTower, a svelte, polished-silver- or gloss-black-aluminum speaker with a built-in SuperCube-powered sub ($1,799 each). PSB’s new upper-line series offerings, along with electronics from sister company NAD, are as yet unnamed but going by “T7” and “T5” for the time being (under $5,000 and under $3,000, respectively).

The PSBs, says Lenbrook marketing manager Mark Stone, will offer a smaller form factor, a more curved-edge look on their heavily braced cabinets, and use fiberglass-impregnated paper cones. KEF’s newest Reference towers boasted new UniQ drivers that are more seamless in appearance than previous incarnations; the top of the line is the Reference 207/2, at $10,000 each. And Atlantic Technology took the wraps off the System 8200e speaker line, an improved version of its THX Ultra2 System 8200 slated for February, which begins at $10,000 for a 5.1-channel system.

High power delivery via a diminutive footprint was the buzz from Polk Audio, which fielded the largest subwoofer introduction in its history with the debuts of the DSW PRO and the DSW MicroPRO Series of powered subs (price range: $480 to $1,780). The subs feature proprietary digital engines, distortion-suppression technologies and room-acoustics-optimization circuitry.

Paradigm presented its latest Reference Millenia Series additions—the 300 floorstanding and the 30 on-wall speaker, both with more power-handling capability than their line cousins, but keeping to the “thin is in” mantra in home theater speaker design ($1,999 per pair and $799 each, respectively).

As for versatility of placement, there’s nothing better than wireless. A number of such speaker systems bowed from companies determined to get it right and to dispel once and for all the industry’s memories of mixed results in many manufacturers’ earlier attempts.

KEF provided an impressive demo of its 2.4GHz RF wireless system ($600 per pair; May delivery), putting the speaker pair through a workout in the same room as an in-use microwave and cell phone, without any discernable disruption in sound. JBL demo’ed its new On Air Control 2.4GHz wireless speaker system ($349) in a prototype kiosk it is considering offering to retailers. And at Klipsch’s show floor booth, the company’s KlipschCast technology multi-room wireless solution was manifested in the modular CS-700 2.1-channel three-piece virtual surround/DVD system with wireless subwoofer. The Klipsch system can also wirelessly funnel CD-quality audio to other KlipschCast products besides the sub—for example, the new RoomGroove Music Center, a standalone iPod dock featuring the company’s trademark MicroTractrix horn-loaded tweeters. Audiovox also showed an Acoustic Research wireless home theater system.

In audio electronics, A/V receivers edged ever closer to the realm of multi-tasking and control system status, while multi-channel power amplifiers and other separates gained more custom-installer-friendly feature complements.

D&M Holdings’ Bob Weissburg, president of sales and marketing for North America, commented upon these trends, in remarks he made about the newest Denon prototypes. The new cosmetics and performance specs had all been devised “in support of high definition and the installer – they’re all about the receiver becoming the master control center,” he said.

Denon’s newest line will begin rolling out in the second quarter, and include high-definition surround with the integration of HDMI 1.3 support, as well as more Audyssey-enhanced models. A focal point at the display was a new 10-channel model with three illuminated vu-meters. Some models, he added, will feature Wi-Fi capability and some will support HD Radio. A new Denon IR and PC-programmable remote control that works with an RF base station and that can send all metadata to the remote was also shown.

Near the Denon exhibit, Marantz showed the line it introduced at the recent CEDIA Expo, including the ZR6001SP, which pairs with the ZC4001 client to enable second-zone audio transmission through ordinary house wiring, using DavED technology.

Harman/Kardon’s four newest A/V receiver models, shipping in April and ranging from $349 to $999, all carry HDMI connectivity and can pass 1080p.

NAD’s newest power amp designs, ranging from $2,499 (for the T975 seven-channel model) and downward, draw their most salient features from the company’s top-shelf Masters Series—for example, the variable-speed fan cooling system on the 975, also found on the M25 Masters Series amp.

Perhaps the most fitting coda to the amalgam of new and old that colored the audio landscape at this CES, though, was a Thomson/RCA introduction that combined an iPod dock/speaker system, vacuum-tube technology and one of the most venerable brand names of old-guard audio into one product, price tag $199: the Acoustic Research AR4131 blackVault.

HDTV is Mostly Flat and Mostly 1080 in 2007

Based on the video products showcased in the Central and South Halls of the Las Vegas Convention Center, it’d be easy to mistake CES 2007 for CES 2009. Most manufactures seem to think the digital revolution is already over—and it’s flat. Not to say that sales have been flat. Flat panel TV sales have been through the roof. Microdisplay TVs also saw an increase in 2006, but most manufacturers stated that they believe microdisplay will only see a small increase in 2007 if not level out completely. Doug Woo, president of Westinghouse Digital, told Dealerscope (in an on-camera interview for dealerscope.com) that one lesson to be learned from this past holiday season is that the flat panel market is now mature, and that retailers should understand that they are no longer in the high-margin, early adopter market of five or six years ago. He called it a “re-measuring of expectations in the category,” adding that volume has increased “at a tremendous rate—it’s an established product.” With the category maturity, and margin maturity, comes the option to add more value by offering multiple product lines, with differentiated features and margins. “It’s what you’d expect in a complex marketplace,” Woo said. Westinghouse showed a new line of LCD TVs up to 52-inches, many in the 1080p class.

All the premium models, and a fair number of mid-line models, some at modest price points, boasted the Full HD 1080p tag line which many consumers have begun taking as a sign of cutting edge technology. But vendors seem to be realizing that they need more than just that one boast to stand out from the crowd. To that end, video processing and enhancement technologies were frequently being touted at press conferences and expo displays. Many makers of LCD panels promoted their new 120Hz technology which takes a standard 60Hz video signal and converts it to 120Hz to eliminate the blur that often plagues those panels. Toshiba calls their new technolgoy ClearFrame (which used motion vector interpolation); JVC calls it Clear Motion Drive; LG calls it Tru Motion Drive while Sharp demonstrated a similar feature, but didn’t give it a catchy name. The underlying message was that differentiation is getting more difficult for manufacturers, and so promoting new features will be paramount when trying to upsell customers in such as crowded market.

LG North America president Michael Ahn speculated that this year would lead to some compression in the number of players in the flat panel market. “Just a few companies can survive and become major players,” he said. As the world’s largest producer of flat panels, LG intends to remain one of those major players. A sign of the company’s seriousness in the market was the company’s decision to drop the price of its flagship plasma TV, a 71-inch model, more than 80 percent to $14,999—a move which LG’s Tim Alessi attributed to a combination of increased demand and production efficiencies, and other manufacturers attributed to competition with other vendors (Panasonic’s 103-inch plasma sells for $70,000, the same as the 71-inch LG before the price drop.) The current 71-inch model does include some improvements over the original, such as a 1,200:1 contrast ratio and two HDMI inputs. To follow-up the 71-inch plasma, LG unveiled a new flagship, a 100-inch 1080p LCD TV, but didn’t release the price.

Pioneer’s main attraction was the company’s new plasma technology, which will be featured in models coming out later this year. Senior Vice President of Home Entertainment Russ Johnson explained that Pioneer wanted to look at how they build plasma TVs from the ground up, and in doing so developed three key new technologies for improving the picture quality. The first development is a new panel design that reduces the minimum luminance by 80 percent and increases contrast and black level. Second, a new color filter eliminates the extra sheet of glass that plasmas use and reduces ambient light reflection, creating a brighter picture that doesn’t get washed out in a bright room. Finally, Pioneer developed a new ASIC for better deinterlacing, scaling and noise reduction. A prototype model exhibiting these improvements was being shown at the booth.

Toshiba Executive Vice President Scott Ramirez introduced several new REGZA LCD TVs with a number of new picture features, including 14-bit video processing, Dynamic Backlight, ColorBust (for a wide color gamut), ClearFrame (a motion vector interpolation for reducing blur) and REGZA link (Toshiba’s name for its HDMI CD Link for sending control commands through HDMI). Three new LCD series (HL67, HL167 and LX177) will be available this spring, with many models in 1080p resolution. Ramirez said the microdisplay business will begin to decline in 2007, but the company is still supporting that market with a line of DLP TVs.

Hitachi’s Kevin Sullivan said that 2006 was a huge growth year for the company, which doubled its plasma volume and “nearly doubled” its market share. It increased its distribution into Best Buy and strengthened it’s A/V specialty category. Now the company is taking an interesting approach to the new 1080p trend but pointing out that their plasma TVs were always 1080, just not with the “p.” The company is taking a two-tiered approach to their plasmas. The lower-priced tier offers ALiS with a 1,280 x 1,080 resolution meant to be competitive against 720p and 768p panels. These will be promoted with the tag line “HD 1080,” and among the models will include a 50-inch unit for $2,499. The higher tier is comprised of 1,920 x 1,080 (1080p) products described as “Full 1080.”

Philips had some flat panel news at its booth—and also boasted that the company had sold one million Ambilight TVs—with the announcement that Ambilight models will now be available in 32-, 47, and 52-inch sizes. A 63-inch 1080p resolution plasma was shown which will be available in June for $5,499. Philips also announced a wireless HDMI connecter with can losslessly send 1080p resolution signals to a television without wires. It’s meant to replace conventional cables for difficult installations.

Sharp’s Chairman and CEO Toshinko Fujimoto opened up his company’s press conference by noting that in 2008, LCD demand will reach 111 million units worldwide and that in 2007 the company increased its marketshare in the 40-inch and above flat panel category to 10 percent, due largely to the new products coming out of its Kamayama 2 plant that opened in 2007. Sharp’s most attention-getting news was a 108-inch LCD TV, though few details were available on it.

Bob Scaglione, Sharp senior vice president of marketing, announced the company’s new LCD lines, which included the top D92 models (in 42-, 46- and 52-inch sizes) that all support 1080p, Dynamic Contrast of 15,000:1, 120Hz frame rate conversion and 4ms response time. A new GP1V series of LCDs aimed at video games was also announced. Those units, in 32- and 37-inch models, include Sharp’s Viper Drive for reducing the lag between console and display.

JVC, which has done well with its HD-ILA line utilizing LCoS rear projection technology, came out with new sets that slim down the display’s profile significantly. The company will offer the new slim TVs in 58- and 65-inch sizes, using three 1080p chips in a newly designed optical engine. The new engine increased the viewing angle 1.5 times greater than previous models by using a concave mirror. A new 1080i high definition camcorder with a 60GB hard drive was also showcased.

Panasonic opened its press event with the news that its 103-inch plasma TVs, launched in 2007, have been selling well and that the new Planet Hollywood casino will include 15 of them, plus 500 other Panasonic plasmas. New 50- and 58-inch 1080p models were also unveiled as well as a prototype 42-inch 1080p model.

While Panasonic does offer LCD TVs, the company clearly wanted to emphasize its strength in plasma, even suggesting that plasma was better on the eyes and for the environment than LCD TV. The company’s new marketing theme, Living in High Definition, was marked by showcases of Panasonic’s new AVCHD high definition camcorders and its Blu-ray player, which began shipping late last year. Some of the new plasma models this year will include an SD card slot that is compatible with the high definition format of its HDTV camcorders.

Samsung’s Gee Sung Choi, president of its Digital Media Division, says it plans to reach its 2007 goals of being “number one in LCD, number one in digital TV, and number one in electronics.” Some new product highlights included a second-generation Blu-ray player, BD-P1200, in early 2007; the player, the company says, will offer improved networking capabilities. Also slated to debut this year is a wireless plasma TV only requiring a single connection to a power source. The set, to be 802.11n-enabled, will have an auto wall mount feature that will allow free rotation of the screen.

Samsung will also offer AnyNet+ networking connectivity in several of its latest Full HD 1080p TVs, the newest models of which will be available in 40-, 46- and 52-inch screen sizes. This HDMI-based technology permits simplified remote control, using a single control device, of a home entertainment system’s compatible components, according to company spokesman David Steel. Some of the sets will also be endowed with Bluetooth capability, enabling wireless transmission of images from a TV to a printer and wireless sound reception via Bluetooth headphones, he said.

Many of Samsung’s TV innovations will manifest in its LCD range, but the company says it is still a staunch DLP technology supporter, and will field a range of sets that use LED light sources to yield full 1080p resolution and are just over 10 inches in depth.

Sony was not playing size game that LG, Sharp, Panasonic and Samsung were competing in. The company announced a 70-inch Bravia LCD display with 1080p resolution and a new LED backlight. A 27-inch prototype of an OLED TV, at 1080p resolution, was also shown. However, one of the more unique introductions was the Bravia Internet Video Link. Compatible Bravia TVs will be able to stream free video content straight from the Internet to the TV without a PC using an optional module. Some of the content will even be available in high definition. Sony movie trailers in 1080p were demonstrated. Other content will come from partners such as Yahoo, AOL and a YouTube-like company, Grouper, which Sony acquired.

High Def Discs Wars

Foremost on our HD trend watchers was the format war between HD DVD and Blu-ray, the two next generation disc formats. Generals in both camps mixed up the numbers of titles available, titles sold, and products sold to the point where it was impossible to tell whose stats were more dependable. Further complicating the matter was the announcement from Warner Home Video that it will start releasing titles in the new TotalHD format which includes an HD DVD version on one side of the disc and a Blu-ray version on the other. The combined format may help retailers who don’t want to stock movies in both Blu-ray and HD DVD, but which format will benefit more from the news is still unclear. Unfortunatly it still does not address backward compatibility with standard DVDs—though some HD DVD discs do contain a standard DVD version on the other side. At a press conference executives stated that New Line and HBO plan to support the format.

The format wars, however, are still in full force.

LG also unveiled more details about its Blu-ray/HD DVD combination player announced last week. The BH100 uses LG’s Super Multi Blue drive that incorporates two laser diodes and two lens systems. The $1,199 player does not play standard CDs, but a PC drive will write and read CDs. The standalone player also supports standard definition DVDs, Dolby Digital+, Dolby TrueHD and DTS HD. LG noted that it would welcome other manufacturers joining their approach in offering a combo player and stated that licensing their technology is an option the company will consider.

Toshiba started out its packed press conference with some milestone numbers on the HD DVD front. To date, over 160 HD DVD titles have been launched and 60,000 HD DVD players sold (including RCA’s clone of Toshiba’s entry-level model) through over 4,000 storefronts offering the players. That number was put into perspective later in the day when Sony announced that it’s PlayStation 3, which is also a Blu-ray player, has reached one million units in its first six weeks (and expects six million by March).

Toshiba, already in its second generation of HD DVD players, unveiled a new model, the HDA20, which at $599 comes in between its other two models. The new model outputs 1080p resolution and features an Ethernet connection. It will be supported by significant promotion and advertising in 2007.

The family of HD DVD players will be growing this year as new manufacturers have announced plans to introduce players. Onkyo, Meridian and LG (with the previously reported combo player) intend to offer products supporting the format. This will bring the number of major brand manufacturers supporting HD DVD to six (including Microsoft, with its Xbox 360), as Thomson has said they will not offer another RCA branded player this year. The initial run of their HD DVD players sold out in 2006. Onkyo has said that their player will support Dolby Digital+, Dolby TrueHD, and DTS-HD as well as HD DVD’s advanced content and navigation features. No price was available.

Media Receivers

There’s a strange reversal of the content stream going on in CE right now. Since the dawn of the World Wide Web, the focus has been on downloading images, movies and music to enjoy on the PC. Now it’s the other way around. You couldn’t walk very far through the aisles at CES this year without stumbling upon another device that would carry the media stored on your PC to your television.

The real push behind convergence is the quest for choice, the ability to enjoy your movies and music wherever, whenever you want. The perfect example of this trend was Sling Media. Sling Media’s big announcement at CES was the SlingCatcher, which will take the content from your PC and sling it to your TV. Blake Krikorian, co-founder, chairman and CEO of SlingMedia, says the main application of the unit isn’t downloading videos off the Internet to watch on your TV, but to take video you’ve already slinged from your TV to your computer back out to another TV in the home. The SlingCatcher costs $200 and will be out this summer.

Buffalo Technology added to its LinkTheater line with the LinkTheater Wireless-A&G Media Player, which incorporates 802.11a/g dual band technology when accompanied with a router that does the same. The dual band technology allows users to use two different bands: the 5GHz “a” band for gaming and streaming multimedia content from their PCs, and the 2.4GHz “g” band which they can use for e-mail and Web browsing. The LinkTheater supports all of the common PC-based music, video and image formats and includes a 10/100 Ethernet switch and USB 2.0 port for connecting additional sources, such as flash memory, digital cameras or portable media players. It’s built on the Intel Viiv platform and, when used with an Intel Viiv PC, can wake up the PC from the living room, instead of having to go to the office to make sure the PC is turned on.

Even if it wasn’t on display on the CES show floor, the Apple TV was making big waves just 500 miles away in San Francisco at MacWorld. Like the iPod, the system is engineered around iTunes to take anything from your iTunes library (Mac or PC) and transmit it wirelessly to your television. It works by syncing with the iTunes library so that whenever you add something to iTunes on your PC, it’s beemed the to Apple TV and available immediately. It’s available now for $299.

12-Volt Moves to Multi-tasking

The demand for in-car navigation and entertainment has increased over the years and going into 2007 will certainly be no different. At CES many mobile electronics manufacturers are satisfying that demand with a multitude of newer, cooler features.

The trends in GPS navigation are moving more towards portability than anything else. Manufacturers are also making these same GPS systems a lot more affordable for the consumer. Many consumers want to be able to have the opportunity to take their GPS head units out of their automobiles and use them as portable devices outside the vehicle, but at the same time want to do without the hassle of a spider web of wires coming out from every part of their dashes. Similarly, consumers have also sought an opportunity for their GPS systems and in-dash head units to be Bluetooth-enabled. Some companies have come out with stereo head units that are XM and Sirus Satellite Radio-ready. In any case, the trends in GPS navigation are looking great: more fun and a whole heck of a lot more features.

Eclipse shined this year in the GPS category, partnering with GPS giant TomTom. Eclipse showed off their AVN2210P GPS system to be available in the spring of this year, with a 3.5-inch LCD touch screen unit that can be removed from the main head unit and used for walking around or with another car. With USB connectivity, it plays MP3 and WMA files, is satellite radio-ready, includes full-control iPod operation, is Bluetooth-ready for cellular hands-free operation and includes an SD card with maps of the U.S. and Canada. Because the TomTom GPS unit fits securely in its docking Eclipse stereo head unit in-dash, there are no wires involved at all.

Clarion also revealed their new N.I.C.E. 430 in-car entertainment system. Again, like the Eclipse AVN2210P, the N.I.C.E. 430 is a portable GPS system that fits in the palm of your hand. The N.I.C.E. 430 includes a 4.3” LCD touch screen and allows the user to store and load navigation and music utilizing its 1GB internal memory and SD card interface. The unit is also Real-Time Traffic-ready and features built-in hands-free Bluetooth. With this Bluetooth feature, the user has the ability to make and receive phone calls via his cell phone without taking his eyes off the road. The N.I.C.E. 430 will have an MSRP of $499.99.

It seems as though more and more CE products are being made thinner and more lightweight than ever before. Navigon showcased their newest lightweight GPS navigation device at CES and believes they have found the “thinnest, smallest and hippest” navigation device on the market to date. The Pocket LOOX measures just 16mm thin and weighs only 3.9 ounces. It has a 2.8-inch color screen and sports a built-in MP3 player, video player, photo viewer and computer games so small you can hang it off of a keychain. Maps included with the Pocket LOOX include lane information, point-of-interest searches, speed limit information and warnings, road signs and GPS auto-follow tunnels. The Pocket LOOX will be available in the spring of this year for an MSRP of $499.

In other CES mobile news, Scosche has come out with some ingenious Bluetooth headphones. A 2007 CES Innovations Award Winner, the BlueLife wireless headphones are static-free and receive incredible digital CD quality sound from your iPod up to 30 feet away. The headphones will pair with any Bluetooth-enabled cell phone. When a call comes in, the system automatically mutes the music and allows you to answer the call without even touching your cell phone. As soon as the caller hangs up, the music is automatically turned back on. The MSRP of the BlueLife headphones is $179.

Small and Proud: Cellphone Trends from CES

As early adopters save their C-notes and prepare to storm Cingular to acquire the stock-boosting iPhone, phone manufacturers are watching the flurry with a cocked eyebrow, wondering if a public which has demanded smaller and smaller handsets with bigger and bigger rebates is really going to go for a substantially-priced convergent device with smartphone heft.

Knowing the market is a large and diverse one, phone makers are turning out new takes on previous hits, and the new models (of phones and their Bluetooth accesories) are almost all significantly smaller than their already slender predecessors.

From UT Starcom comes “the smallest camera phone on the market,” according to Joan Cear, who was demonstrating the phone in the UT Starcom booth at CES. “The CDM8935 is 3.3 inches high, 1.7 inches wide, and 0.7 inches thin. It’s smaller than a business card,” says Cear. Though the camera boasts only 0.3 megapixels, the price for this entry-level phone will probably be only $50 after rebates.

Sony Ericsson is offering a new Bluetooth accessory with an old-fashioned manly look, the MBW-100 watch. Compatible with most of the new Sony Ericsson Bluetooth handsets, this silver watch vibrates when your phone rings. A small OLED display underneath the watch hands identifies your caller and alerts you to incoming text messages. Buttons on the right side of the watch allow you to send a busy signal to the caller or activate MP3 functions. The watch also vibrates when it moves out of range, so you can’t forget the phone.

Motorola, meanwhile, is answering the national demand for the Razr with a “Razr for women,” essentially, a 3.6 oz clamshell called the Krzr (pronouced “Crazer”). The polished metal Krzr has a 2.0 megapixel camera with 8x zoom, video capture and playback capability and a MP3 player. A microSD card slot allows the user to easily import/export digital images and music files. The Krzr will be available at Cingular Wireless, a small and shiny diversion which might tempt iPhone enthusiasts to stray.

Though LG and Samsung have both debuted “TV phones,” handsets which are able to deliver a live television feed of about a dozen popular channels through Verizon’s new V Cast Mobile TV service, most of new cellphones on display at CES this year are, essentially, fashion statements. “It’s all about look,” says LG’s Melissa Elkins. “We’re even seeing changeable face plates making a comeback. Design and color are very important to consumers right now.”

Vacuum polished metal, an uber-reflective silver surface reminiscent of the stainless steel finish so popular in high-end kitchen appliances, is the color of choice for many new models, making “shine” the new black. Form factors continue to be ‘Razr’-thin, facilitated by the widespread adoption of microSD, memory cards as tiny as a pinky fingernail. Slider-style phones are increasingly popular, evidenced by Motorola’s shiny new offering, the Rizr (pronounced “Rizer”).

Phone manufacturers are unanimous in their support of including MP3 capabilities and increasingly advanced cameras in all new phones. That means almost every debut handset is a “music phone” with a 1.3 megapixel (or better) digital camera. Motorola’s Ryan Seick says the trend internationally is actually toward two-camera phones, with one lens pointing back at the user, enabling live video-conferencing.