Monday, September 17, 2012

The Importance of Being IFA

Monday September 17, 2012 – Stewart Wolpin

Since every tech reporter worth their microSD jack is writing about iPhone 5 this week, I'll avoid the topic and address more of an industry issue – the increasing importance of the recently concluded IFA electronics show.

IFA stands for…something German and unpronounceable (okay, it's Internationale Funkausstellung Berlin). What it is is the European CES, held each year in Berlin. I've attended IFA the last few years as a guest of the organizers, but this blog posting is by no means a give-back or thank-you note.

IFA is both fascinating – it gives you a unique view of the European market and half the show is appliances, which I don't get to see much of here in the U.S. (and Europe is SOOOO far more advanced in appliances it's downright embarrassing), and annoying – it's spread out over 26 buildings each with multiple floors, and I often felt like a lost Jennifer Connelly in Labyrinth failing to efficiently navigate it.

Plus, Berlin is historically sad, respectful, frightening and energizing, as well as modernly vibrant and old world beautiful in a way crass and commercial Las Vegas could never be. In addition to touring omnipresent WWII and Cold War sites, last year I took side trips to Potsdam and Hamburg; this year I visited Dresden and the infamous Wannsee villa.

Timing is everything

But what's important to the consumer electronics industry, however, is IFA's timing – the fall, and the eve of the holiday season.

Last year, Samsung used IFA as the launching pad for its Galaxy Tab 7.7, which it had to remove from the show floor after Apple challenged its intellectual property legitimacy. But that's beside the point.

This year, IFA's late season timing proved perfect to smartphone, tablet and PC makers who wanted to preview their Windows 8 products, which will all launch after Microsoft makes its next-gen OS official on October 26.

And big screen HDTV makers got a chance to show off next-generation display technologies. LG and Samsung each claimed the biggest thinnest and first OLED set (both have 4mm thin, 55-inch models, but only LG has set a price and a definite "this year" sale intention, even if it is only Korea for $10k). LG, Panasonic, Sharp, Sony and Toshiba all showed off giant 3840 x 2160 pixel 4K HDTVs, and a few execs even hinted at possible late 2012 availability (although I expect the Mets to win the pennant before a 4K HDTV actually goes on sale).

After a couple of press-only days, IFA also is open to the pubic, which gives manufacturers a chance to chuck new ideas against the stoop and gauge real consumer reaction (and some should be chucked). One manufacturer told me his company writes more business at IFA than at CES.

I'm not advocating companies abandon CES in favor of IFA – for one thing, the host Messe Berlin Fairgrounds are bursting at the seams already (although a spanking new City Cube convention space is due to open in Berlin in 2014, which IFA will hopefully relocate to and which hopefully will alleviate the maze mess at Messe Berlin).

But IFA's unique fall timing should make U.S.-centric consumer electronics businesses a bit more aware of the 4Q showcase opportunity IFA presents – even if no one but a native can pronounce its actual name.