Sun Setting for Home Appliances, PCs, Smartphones
The author is an analyst of NH Investment & Securities. He can be reached at kyuha.lee@nhqv.com. -- Ed.
CES 2023 highlighted the popularization of XR, mobility technology, and AI, and decreased interest in existing IT devices such as home appliances, PCs, and smartphones. The showcase company was Sony, which well implemented XR and mobility technology, combining both HW and SW.
Sun rising for XR, mobility, AI/semiconductor
The four main takeaways from CES 2023 are: 1) the utilization of XR-integrated technology in diversified industries; 2) the expanding scope of mobility technology and expanding role of autonomous driving SW; 3) likely mid/long-term semicon demand driven by the popularization of autonomous driving; and 4) reduced interest in existing IT devices.
Other noteworthy points include strengthened HW and SW convergence, collaborations between heterogeneous companies, the transformation of traditional heavy equipment firms, the emergence of new players and intensifying OS/platform competition. In both domestic and overseas stock markets, positive changes in investor sentiment are expected for XR, autonomous driving/electronics, and AI-related players.
- XR beneficiaries: LG Innotek (LGI), SEMCO, Sekonix, and Sony Group
- Mobility beneficiaries: LG Electronics (LGE), LGI, Hyundai Mobis, Qualcomm, Mobileye, and John Deere
- AI/semiconductor beneficiaries: Microsoft and AMD
Sun setting for home appliances, PCs, smartphones
We believe that interest in existing IT devices such as TVs, smartphones, and home appliances has significantly declined. However, among TVs, the LG Signature OLED M, a wireless TV from LGE, stood out. In terms of displays, devices that utilize both foldable and rollable displays attracted attention.
- Home appliance/IT device beneficiaries: LGE, Samsung Electronics (SEC), and KH Vatec