Thematic Intelligence: Consumer Electronics Sector Scorecard Q2 2024 Update

Thematic Intelligence: Consumer Electronics Sector Scorecard Q2 2024 Update

Summary

Smartphone makers are turning towards software improvements to emphasize value and reinforce price points as hardware innovation slows. Generative AI is the latest software innovation that promises to transform user experience.

Key Highlights

• On June 10, 2024, Apple unveiled its privacy-focused generative AI experience, dubbed Apple Intelligence. The product integrates ChatGPT from OpenAI into existing Apple workflows, aiding processes like writing, image creation, and Siri. While the announcement gave Apple a stock price boost, the product's success will rest on how well it can meld a premium user experience with unpolished technology. AI integration is a short-term solution-over the long term, Apple must remedy any generative AI shortfalls to achieve widespread uptake.
• Apple will also need to address geopolitical and regulatory issues, such as competition from domestic handset makers in China and antitrust concerns in Europe, before Apple Intelligence can achieve pervasive brand recognition. Also, the broader issues surrounding generative AI, such as hallucinations, data privacy concerns, bias, and misinformation, are barriers to an AI-driven smartphone super cycle.

• This sector scorecard provides a top-down, comprehensive outlook for the key players in the consumer electronics sector over the next two years, based on the key themes set to transform their industry landscape.

• Companies that invest in the right themes become success stories. Those that miss the important themes in their industry end up as failures.
• GlobalData’s thematic research ecosystem is a single, integrated global research platform that provides an easy-to-use framework for tracking all themes across all companies in all sectors. It has a proven track record of identifying the important themes early, enabling companies to make the right investments ahead of the competition, and secure that all-important competitive advantage.
• At GlobalData, we have developed a unique thematic methodology for ranking all major companies in all major sectors based on their relative strength in the big themes that are impacting their industries.
• Our thematic engine tags over 180 million data items across six alternative data sets-patents, jobs, deals, filings, social media, and news-to themes. The vast datasets within our thematic engine help our analysts to produce sector scorecards that identify the companies best placed to succeed in a future filled with multiple disruptive threats.