Courtesy of Wade of Investing Caffeine
Why would I and 175,000 other humans from over 150 countries possible gather in one spot to look and play with a bunch of toys and gadgets? The answer can be explained with three letters…CES, otherwise known as the Consumer Electronics Show, which has been held primarily in Las Vegas, Nevada since 1967 – a few years before I was born. More than 7,500 media professionals from around the world also attended the world’s largest consumer technology tradeshow to write millions of online articles and messages about the latest and greatest hardware, software, and services.
I have attended CES multiple times, but more amazing than the massive scale of the 2.5 million square feet of exhibition space is the pace and magnitude of the innovation.
With approximately 4,000 exhibiting companies showing off their gadgets and services, you can probably imagine there were quite a few categories flaunted, including the following:
- Augmented & Virtual Reality
- Internet of Things (IoT) and Smart Home Technologies
- Televisions, Televisions, and more Televisions
- Driverless Cars
- 3D Printers
- Electronic Gaming
- Automobile Entertainment/Audio
As I point out in the Birth of Silicon Valley – Traitorous 8, even after 50 years, “Moore’s Law” is still alive and well today. Moore’s Law, which was established by the Intel Corporation (INTC) founder Gordon Moore, states the number of transistors (i.e., a chip’s computing power) generally doubles every 1-2 years. CES epitomized the Moore’s Law trend, which has allowed technology companies to make hardware exponentially faster, smaller, and more battery efficient (i.e., longer life).
Moore’s Law has contributed to the acceleration of innovation by driving storage costs down a constant path towards zero, while semiconductor technology continues to explode computing power at the edge of networks (cell phones) and at the core of networks (the “cloud”). There are already approximately five billion cell phone subscribers worldwide, and two billion of those are effectively supercomputers in the form of smartphones. This global mobile computing explosion has opened up an infinite number of potential applications, limited only by the number of creative ideas. Many new and existing killer applications are being created by the multi-billion dollar cloud-based data centers that Amazon Web Services (AWS) and other competing tech behemoths are creating. The glue necessary to connect the explosion of computing power at the core and edge is software, which is why there is such massive demand for software programmers (“coders”) in Silicon Valley.
I found the advancements in augmented reality, connected homes, and drones to be especially fascinating areas at the show, but here are a couple of the more quirky finds I discovered:
One S1 Segway: Yes, it’s true that Hoverboards literally caught fire last holiday season, but CES highlighted a sister product, the One S1 Segway at the show. Essentially the gadget is a miniature unicycle that meets mobile phone app. I captured a brief video here:
Petcube: As a pet owner, I was also intrigued by Petcube, a cloud-based interactive pet monitor service that allows consumers to remotely communicate and play with their pets through their phones. In addition to speaking to the pet through the Petcube, the user can also remotely play with their pet by activating a moving laser. The company also has made a remote treat-dispensing device to reward and feed lonely pets. Here is a video summary:
If you have never been to CES and are contemplating a visit, please be aware the sheer size and magnitude of the event can be a bit overwhelming for newcomers. However, the benefits far outweigh the costs, and any preconceived notions that the pace of technology is slowing will quickly be dispelled. Of course, I would never consider mixing business with pleasure while in Las Vegas (cough, cough), however if you do decide to attend, you will have an opportunity to partake in some of the local eating, gaming, shopping, and entertainment after you get burnt out on all the gadgets and technologies. Thanks again CES, and goodbye…for now!
*See also, CES Summary from last year: CLICK HERE*
Wade W. Slome, CFA, CFP®
Plan. Invest. Prosper.
DISCLOSURE: Sidoxia Capital Management (SCM) and some of its clients hold positions in AMZN, INTC and certain exchange traded funds (ETFs), but at the time of publishing had no direct position in Segway, Petcube, or any other security referenced in this article. No information accessed through the Investing Caffeine (IC) website constitutes investment, financial, legal, tax or other advice nor is to be relied on in making an investment or other decision.