Consumer Electronics
The consumer electronics industry manufactures and distributes everything
from telephones, stereo components, televisions, alarm clocks, and
calculators to digital cameras, video cameras, VCRs, and DVD and MP3
players—basically, everything you see when you go into a Best Buy
or Circuit City store. (Some industry observers also include
desktop and laptop PC manufacturers as part of the industry.) Needless to
say, consumer electronics is big business. In 2005, in the U.S. alone,
consumers spent more than $75 billion on consumer electronics products, 8
percent more than in 2004.
The industry employs a host of engineers, designers, marketers,
salespeople, customer service reps, and finance gurus to continually
improve familiar products as well as come up with the next big must-have
gadget. Although much of the actual manufacturing of consumer electronics
products is done in Asia and other low labor-cost locations, there are many
career opportunities in the industry in the United States. On the technical
side, opportunities exist for software and electronics engineers, quality
assurance engineers, industrial designers, manufacturing design engineers,
and IT professionals. If you're a people person or 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 backs big products such as high-definition
television (HDTV) and smart phones (mobile handsets with advanced operating
systems and powerful processors). Or you can try your hand at a startup
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 prefer the flexibility and cutting-edge spirit (and bare-bones
budget) of a younger, smaller company.
Job seekers should also keep in mind that many consumer electronics
products are global brands, so many companies have opportunities for
international positions and travel, and foreign language skills are often
highly desirable. And in the United States, 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.
Convergence
With each passing year, and each new generation of products introduced in
the marketplace, it's getting harder and harder to pigeonhole companies
and their products into traditional categories like telecommunications,
computer hardware, and consumer electronics. Consider cell phones: These
days, cell phone users can use their phones to do everything from take
digital photographs and send and receive email to surf the 'Net,
download and watch videos, and transmit their geographic location via
global positioning system (GPS) technology. You tell us: Should cell phones
that do all that be called consumer electronics products? Telecom products?
Computer hardware products?
One result of convergence is that players in the consumer electronics,
computer hardware, and telecom sectors are increasingly finding themselves
competing head-to-head to determine who will lead in brand-new product
categories such as Internet-connected cell phones. Turmoil, in the form of
mergers and acquisitions and fluctuations in profitability, is likely to
result in each of these industries as time passes.
Falling Prices
These days, because so many consumer electronics products rely on
semiconductors for their functionality, Moore's Law, which states that
semiconductor speed doubles every 18 months, applies just as much to the
consumer electronics industry as it does to computer hardware. Because of
this, consumer electronics companies are developing new and improved
products all the time. If you're one of the many consumers who need to
have the latest and greatest gadgets, it's going to cost you a pretty
penny to stay on the cutting edge. But if you don't need
top-of-the-line consumer electronics products—if you're happy with
getting a 4-megapixel digital camera, for instance, and are prepared to
leave the 8-megapixel camera to the hardcore gadget-heads—just wait a
little while, and the price on the product that’s right for you will almost
certainly decrease substantially.
Cool New Products
As usual in consumer electronics, these days there are a number of cool,
new products on or about to reach electronics store shelves. For instance,
to take advantage of the improved sound offered by digital radio, many of
the big electronics makers are bringing digital home and car radios to
market. Digital cameras, meanwhile, are increasingly likely to include
significant digital video recording capability. And there are refrigerators
on the market with TV screens embedded in them, which you even can use to
surf the ’Net. Satellite TV in your car; satellite radio systems that give
you live, up-to-the-minute reports on traffic conditions; handheld
media-storage devices; live TV on your cell phone—the list of innovative
new consumer electronics products already on or about to hit the market
goes on and on.
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 piracy—of music and, more recently, of movies.
Such concerns delayed the introduction of writable CD equipment (and
digital audiotape); the spread of the MP3 format for recording music
and exchanging it via the Internet is giving the music industry fits. 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 that the entertainment
industry has the upper hand again.
Who Controls the Digital Home
Televisions, stereos, cameras, and other consumer electronics products grow
more useful and powerful when they are tied together wirelessly and can
reach out to the Internet. For the digital home to take shape and for sales
to soar as consumers see its advantages, companies need to figure out how
to get all their gadgets talking to each other and to a central hub that
will store the many megabytes of media files that entertain us. Microsoft
wants the computer in the middle and is pushing its Media Center software;
Sony is selling a portable LCD television that can grab video from the
Internet, a personal video recorder, or a DVD player; and Sharp will launch
technology for sending HDTV signals through a home's existing
electrical wiring. No matter which arrangement proves popular, there should
be plenty of work in turning today's homes into tomorrow's
networked entertainment centers.
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 fewer 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, DVDs, and camcorders to include flat-screen and
high-definition digital televisions, personal video recorders (PVRs),
elaborate home theater systems, home satellite systems, set-top Internet
access devices designed to bring interactivity to the television, and cell
phones and other handheld devices that can download, store, and play video.
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, MP3s, and
proprietary digital formats from the likes of Apple and Sony 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
smart phones and wired PDAs, which will use high-speed wireless networks to
transmit voice and data. 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 Samsung.
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 such as Sunbeam and Whirlpool are joining the fray
by experimenting with products that are network-friendly.
The U.S. Bureau of Labor Statistics expects the number of jobs in this
industry to shrink by some 7 percent between 2004 and 2014, as compared to
a 14 percent increase in the number of jobs overall during that period. But
the reality here is that job prospects will vary tremendously depending on
the specific industry segment you're looking to work in and the
specific career you desire.
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 (e.g., household
audio, where PCs and MP3 players are increasingly taking the place of
traditional home stereo systems).
Because of increasing automation and outsourcing, 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 an
ability to think about the ways in which digital content, piracy
protections, the design of an electronic product, and available networking
technology can interact to produce something that is truly entertaining and
flattering to use. Ladies and gentlemen, find the next iPod!
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Life on the Cutting Edge
Working in the consumer electronics industry is a gadget lover's dream
come true. Whether you're in engineering or sales, you'll have the
inside scoop on this year's hottest product and next year's new
technology. You may even like bringing your work home with you—if it means
doing a little market research on the competitor's home theater system
or beta testing a new video game console.
Agents of Change
The world was different before television. It was different before radio,
before cell phones, and before CD players. And it will change again with
the advent of smart homes, smart cars, and smart phones. By changing the
way people communicate, share information, and entertain themselves,
consumer electronic products become a part of the culture. For the people
who create these products, it's a powerful feeling to see your work
shaping how people interact and communicate every day.
Mobility
The consumer electronics industry is big and diverse; behemoth
conglomerates and tiny start-ups coexist on almost every continent. But all
of these companies use similar technology to develop similar products that
are targeted to similar consumers. For the job seeker, this means that the
skills you develop at one company will be valuable at many others.
Headache Technology
Engineers spend a lot of time debugging, and though they catch most of the
glitches, it's difficult to catch them all. At the same time,
today's level of competition has shortened design cycles and reduced
testing time. So when a bug doesn't raise its ugly head till it's
comfortably entrenched in several million living rooms, headaches arise not
just in the engineering lab, but in marketing, sales, and, especially,
customer service.
Luxury Industry
Let's face it: A new gadget is not exactly a life-or-death purchase;
it's a luxury. This means that the consumer electronics industry is
inherently tied to the strength of the overall economy, both domestically
and abroad. If consumers' disposable income dries up, most consumers
will be quick to realize which products they truly need—medicine,
housing—and which they merely want. The resulting slowdown in sales can
trigger layoffs at big and small manufacturers alike.
Cog in a Very Big Wheel
The top executives in this industry don't spend all their time thinking
about consumer electronics. The consumer electronics divisions of Hitachi,
Matsushita, Mitsubishi, Philips, Sony, Samsung, and others are just small
parts of empires that can include cars, movies, turbines, missiles, and
nuclear power plants. At these enormous conglomerates, the view from the
bottom of the corporate ladder can be daunting, and your work may sometimes
be lost in the crowd.
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|
Top 20 Major Players, by 2005 Revenue
|
|
Rank
|
Company
|
Revenue ($M)
|
1-Year Change (%)
|
Employees
|
|
1
|
General Electric Co.
|
148,019
|
–2.2
|
307,000
|
|
2
|
Siemens AG
|
90,670
|
17
|
461,000
|
|
3
|
Matsushita
|
81,298
|
13.0
|
334,752
|
|
4
|
Samsung Electronics Co., Ltd.
|
78,250
|
44.2
|
123,000
|
|
5
|
Sony Corp.
|
66,912
|
–7.2
|
151,400
|
|
6
|
Microsoft Corp.
|
39,788
|
8.0
|
61,000
|
|
7
|
Royal Philips Electronics NV
|
35,972
|
–12.4
|
231,161
|
|
8
|
Sharp Corp.
|
23,616
|
10.5
|
46,751
|
|
9
|
Sanyo Ltd.
|
24,174
|
–1.4
|
96,023
|
|
10
|
LG Electronics Inc.
|
23,542*
|
39.4*
|
66,614*
|
|
11
|
AB Electrolux
|
18,242*
|
5.8*
|
72,382*
|
|
12
|
Whirlpool Corp.
|
14,317
|
8.3
|
68,125
|
|
13
|
Eastman Kodak Co.
|
14,268
|
5.6
|
51,100
|
|
14
|
Apple Computer, Inc.
|
13,931
|
68.3
|
16,820
|
|
15
|
Kyocera Corp.
|
11,034
|
0.6
|
58,559
|
|
16
|
Pioneer Corp.
|
6,857
|
3.7
|
39,362
|
|
17
|
Thomson
|
6,735
|
–37.8
|
49,079*
|
|
18
|
Yamaha Corp.
|
4,966
|
-2.8
|
23,828
|
|
19
|
Maytag Corp.
|
4,901
|
3.8
|
36,360*
|
|
20
|
Nintendo Co., Ltd.
|
4,788
|
–1.7
|
3,013
|
*2004 figures.
Sources: Hoover's; WetFeet analysis.
|
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Inventing, designing, building, manufacturing, distributing, and selling
consumer electronics is a big business that requires lots of people with
lots of different skills. On the technical side, engineers and product
designers will find opportunities in hardware, software, and systems. On
the business side, this industry employs marketers, customer service
professionals, and operations specialists.
Software Engineer
Manufacturers of digital television systems, home automation systems, video
games, personal digital assistants, and other products need software
engineers to write the code that makes their products work. Most positions
require a BS in computer science or electrical engineering; experience in
real-time, embedded software development is helpful. Salary range: $45,000
to $90,000.
Hardware Engineer
Electrical engineers design the products and their components, and are
involved with everything from layout and prototyping to manufacturing and
quality control. People in these positions have a BS or Master's in
electrical engineering, mechanical engineering, or computer science. Salary
range: $40,000 to $85,000.
Senior Engineer
Once they've put in time in the trenches, engineers can move into more
managerial roles, such as leading a project team or division as the head
architect of a particular product. These senior roles combine technical
expertise with a wider range of responsibilities including team building,
budget and resource management, long-range planning, and coordinating with
other divisions. These people have strong organizational, communication,
and leadership skills in addition to several years of experience and the
requisite engineering degrees (BS required, Master's or PhD preferred).
Salary range: $60,000 to $120,000.
Marketer
Marketers are the people who convince consumers to buy consumer electronics
products that, let's face it, in most cases they don't really need.
Responsibilities can include pricing strategy, distribution, promotion,
advertising, and public relations. Marketers analyze market trends, prepare
sales forecasts, manage inventory levels, and coordinate trade show
preparation. Entry-level positions often require a bachelor's degree in
business or marketing, while product-management positions usually require
an MBA. Candidates should have strong analytical, business-planning, and
presentation skills, plus good creative judgment. Salary range: $30,000 to
$150,000.
Operations Specialist
Operations specialists plan, organize, and direct the purchasing,
manufacturing, and distribution of consumer electronic products and
components based on sales forecasts and orders. Responsibilities may
include quality control, inventory control, product testing, import/export
management, transportation management, and warehouse or plant management.
Many of the larger consumer electronics manufacturers have plants overseas,
so foreign language skills, travel, and even relocation may be required. A
BS or engineering degree is usually required and strong analytical,
organization, and negotiation skills are helpful. Salary range: $30,000 to
$85,000.
Product and Technical Support
Support specialists are the primary contact for customers on issues ranging
from product usage and product recommendations to troubleshooting support
and parts and repair management. Requirements usually include a high level
of telephone and customer service skills and a high-school diploma; a
college degree and electronics or technology training may also be required.
Salary range: $30,000 to $90,000.
Sales Representative
Salespeople manage an account base of chains and specialty stores that sell
consumer electronic products. Responsibilities include ensuring that
products are merchandised properly and in working condition, conducting
training for store personnel, and advising on sales promotions and
advertising. Salespeople need good presentation and communication skills to
articulate a brand's value versus competing products. Salary range:
$25,000 to $125,000.
So you're ready to find the job of your dreams in the consumer
electronics industry. How should you get started? Here are a few tips to
keep in mind:
-
Start with a brand or product category that you're familiar with.
Employers are looking for people who can create demand for their
products, and you'll find it easier if you're
excited—passionate—about a given product. But don't forget to
research the company you're interviewing with as a whole, including
its other products and its competition.
-
Keep your eye on campus recruiting schedules. Many of the larger
employers, such as Sony and Philips, recruit on college and graduate
school campuses for a wide range of positions. For technical positions,
you'll find many consumer electronic manufacturers represented at
career fairs.
-
Experienced and entry-level candidates alike should use any and all of
their industry contacts to get a foot in the door. At smaller companies
in particular, networking is the name of the game. So talk to your
network of contacts to see if they know anyone who is in touch with the
people in the know at the company you want to work for.
-
Think about whether you want to go big or small. The training programs at
large companies can be invaluable; you'll be steeped in the marketing
strategy, technology, and operational structure that created a recognized
brand and successful product. If you think you can handle the bureaucracy
that a multinational corporation sometimes has in exchange for some good
experience and credentials, the big names aren't a bad place to
start. A word to the wise: Even if a small company is the first to market
with a new technology, a big competitor can squash that advantage with
just a few flexes of its marketing muscle. Call it the Microsoft effect.
So do your research.