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Recession muffles buzz at tech show

But Boston-area companies consider the 4-day electronics extravaganza the place to make contact

At last year's Consumer Electronics Show, personal media viewers were tried out and Yahoo had a corporate tent (it will not this year). But iRobot will be back this year, unveiling a product at the event. At last year's Consumer Electronics Show, personal media viewers were tried out and Yahoo had a corporate tent (it will not this year). But iRobot will be back this year, unveiling a product at the event. (Jae C. Hong/Associated Press/file 2008)
By Hiawatha Bray
Globe Staff / January 3, 2009
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America's biggest technology trade show won't be quite so big this year. The four-day Consumer Electronics Show that begins next week in Las Vegas is expected to draw fewer visitors as the weak economy drains corporate travel and marketing budgets.

But Boston-area technology executives are purchasing their plane tickets anyway. They say that recession or no recession, CES is the place to be.

"It's still an important industry event," said Colin Angle, chief executive of iRobot Corp. of Bedford, maker of the Roomba robotic vacuum cleaner. "I think that the ones who feel they can afford to show up, be aggressive, and generate a buzz are the ones who are going to be selling product next year."

CES attracts consumer electronics firms from around the world each January to show off the latest in computers, audio, and video equipment. In the past, the show has snarled traffic around the Las Vegas Convention Center and filled the city's hotels to bursting. But this year, consumers with less money to spend have forsaken the city's casinos, leaving behind plenty of spare hotel rooms. And days before the show begins, accommodations are easy to find, due to a drop-off in attendance.

The Consumer Electronics Association, which sponsors CES, predicts about 130,000 attendees at this year's show, down from 141,000 last year, and 2,700 exhibitors, down from 3,000 last year. A number of major companies have cut back their presence at the show. The Internet search service Yahoo Inc., which hosted a large tent last year, will not have a booth at all this year. Instead, Yahoo officials will hold press conferences and give speeches at the event. Seagate Technology LLC, a leading producer of hard drives, and Belkin International Inc., maker of cables and electronic accessories, have made similar moves.

But CES continues to attract new companies. Association spokesman Jason Oxman said about 300 exhibitors will be attending for the first time.

And many companies that are cutting their CES budgets are still showing up.

Angle said iRobot has never spent too lavishly at CES. "We've always done a modest presence there," he said. "We don't break the bank." Even so, Angle said the company would cut its show expenditures even more this year.

IRobot plans to unveil a product at CES, but Angle refused to provide details. He said the company also sells a substantial number of its robot vacuum cleaners to business people at the show. Angle also hopes to recruit other companies for a campaign to use robots to encourage children to study science and engineering. "We're trying to tap into people who might want to contribute and join this educational mission," he said.

Zink Imaging Inc. of Bedford won't have a booth at the show. Instead, chief marketing officer Scott Wicker said, company officials will meet with business partners in a private hotel suite. "For us, it's a very affordable way for us to talk to a variety of partners in a single setting," said Wicker.

Zink makes an inkless color printing system used by Polaroid Corp. to make instant prints of digital photos. The company is looking to license its technology to other electronics firms. Zink plans to disclose a couple of new deals at the show, but Wicker declined to discuss them.

Lenbrook America Corp. in Sharon distributes high-end radio gear made by Tivoli Audio LLC of Boston.

Marketing manager Mark Stone attends the show to make contact with specialty audio retailers. "We're trying to reach out to dealers who are looking for new opportunities of providing a unique product," Stone said.

But Stone worries that his job will be more difficult this year. "The section of the marketplace that we serve at one point tended to be a little less influenced by the vagaries of the economy," he said. "But with what's happened of late, it's really affected every channel of our distribution."

Stone hopes his decision to rent a high-end suite at the Venetian Hotel will help him compete with other makers of premium audio gear. "We're hoping to see people that perhaps we have not met in the past," he said.

Indeed, the chance to meet lots of customers in one place makes CES a cost-effective investment, according to Oxman. "The average CES attendee conducts 12 meetings while at the show," he said. "Companies are looking to meet with their customers at the show and avoid those 12 trips they'd otherwise have to take."

Hiawatha Bray can be reached at bray@globe.com.

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