Consumer Electronics Market Analysis: AI Value Explodes! Clear Trend of AI Empowering Consumer Electronics
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On January 9 local time, the 2024 International Consumer Electronics Show (CES 2024) kicked off in Las Vegas, USA, with major tech giants competing in markets such as chips, future displays, and smart vehicles, showcasing their latest technological achievements and future development plans.
The recovery of the consumer electronics industry is progressing in sync with various sectors. The CES in January 2023 released some technological signals, which have since been validated in subsequent developments.
Currently, China's consumer electronics industry is exhibiting several notable trends. According to EY's summary, China's consumer electronics industry is undergoing a transformation phase, with trends such as 5G, the Internet of Things (IoT), smart devices, artificial intelligence (AI), personalization, and sustainability reshaping the industry.
The surge in AI technology has been the hottest topic of 2023. Domestic research institutions, internet companies, telecom operators, financial institutions, and other enterprises are actively embracing AIGC, striving to achieve breakthroughs in computing power, platforms, algorithms, and applications.
Consumer Electronics Market Analysis
From traditional consumer electronics to smart home appliances, wearables, and smart vehicles, AI technology is rapidly penetrating. This trend has not only attracted the participation of industry giants but also ignited the enthusiasm of startups. A representative from a participating company at the exhibition remarked that they clearly felt 'surrounded by AI.' Tech giants Google, Microsoft, Amazon, and others showcased their cutting-edge AI products in the fields of AI chips, AI voice recognition, and AI smart home systems at CES 2024.
Chip giant Intel introduced a series of latest mobile and desktop processors for AI PCs and announced that more than 60 laptop models equipped with Intel Core 14th Gen HX processors will be launched in 2024.
With AI PCs gaining momentum, traditional PC manufacturers naturally didn't miss the opportunity. Lenovo, Dell, HP, and ASUS have all announced plans for new product launches, stating that the era of AI PCs will officially begin this year.
Currently, the trend of AI empowering consumer electronics is clear, with valuation restructuring logic gradually being validated. Attention should be paid to the inflection point in the consumer electronics industry.
The consumer electronics industry is a vital part of the electronics and information technology sector and one of the nation's strategically important industries. With technological advancements and diverse consumer demands, the consumer electronics industry is characterized by rapid development and active innovation, making significant contributions to national economic growth and social progress.
The consumer electronics industry covers a wide range of products, including smartphones, tablets, TVs, audio devices, and gaming consoles. These products not only meet consumers' daily needs but also represent the latest trends in fashion and technology. In developed countries, consumer electronics have become an indispensable part of people's lives. In developing countries, with economic growth and rising consumer purchasing power, the consumer electronics market is also experiencing rapid expansion. China ranks first globally in both production and sales of consumer electronics, serving as a crucial manufacturing hub for these products worldwide. Most major global electronics manufacturers and OEMs have established production bases and R&D centers in China.
According to the "2023 Consumer Electronics Industry Trends White Paper" released by Tmall, the primary consumer demographic for electronics in China is aged 20-40, accounting for over 80% of the market, with the post-95 generation making up more than 30%. Vertical products like small appliances, characterized by lower price points and fast-moving consumer goods traits, are easily "seeded" for specific needs and scenarios, emerging as a new segment with high potential for explosive growth in the consumer electronics sector.
The domestic large model landscape is thriving, with smartphone manufacturers joining the fray. On November 16, 2023, OPPO announced at its Developer Conference that its self-developed ColorOS has surpassed 600 million monthly active users globally, officially launching its self-trained large model, AndesGPT.
Currently, Honor, Huawei, Xiaomi, and vivo have all invested heavily in large models, each following different R&D and strategic paths to build their own ecosystems.
In 2023, several smartphone giants reported breakthroughs in running large models on devices. Earlier this month, vivo introduced five large model matrices and launched the world's first smartphone capable of running a 10-billion-parameter model on-device on November 13. Xiaomi founder Lei Jun also announced that Xiaomi's latest 1.3-billion-parameter AI model runs successfully on smartphones locally. In August 2023, Huawei's HarmonyOS 4 announced its integration with large models. Companies are accelerating large model deployments, engaging in a covert competition. IDC predicts that by 2026, nearly 50% of terminal device processors in the Chinese market will be equipped with AI engines, showcasing extensive opportunities for AI adoption. AI smartphones are an inevitable trend in the smartphone industry. Everbright Securities believes that AI smartphones and other intelligent terminals could become a transformative direction for the future of the consumer electronics sector.
It is understood that smartphone manufacturers are primarily adopting two approaches to integrate large models. Companies like Honor and Xiaomi focus on on-device computing, while vivo pursues a dual-path strategy combining on-device and cloud-based solutions.