Poor economy hits CES

The weakening economy is taking its toll on the annual Consumer Electronics Show (CES) in Las Vegas, with the number of exhibitors and expected visitors down on last year.

The organisers are reporting that 2,700 companies will be showing their wares at the show this year, down from 3,000 in 2008. Visitor numbers are also expected to be down to 130,000, compared to over 141,000 last year.

“We're expecting things to be much quieter,” a representative of a major chip manufacturer, who asked not to be named, told vnunet.com.

“There'll be less people coming but we're also expecting fewer deals to get done. There'll be a lot of people looking but less of them will be putting their hands in their pockets.”

CES is billed as the largest electronics show of the year and for many companies is an unmissable event. Larger companies are still attending, with Microsoft's Steve Ballmer leading the keynote programme, but smaller companies are staying away in larger numbers.

Nevertheless the organisers are confident that the show will remain relevant.

Gary Shapiro, president of the Consumer Electronics Association said: “In this challenging economy, our industry knows that CES is more important than ever to grow business.”

“In tough economic times, tradeshows make the most business sense and CES is the must-attend event of the year for our industry.”