AI-driven innovation is reshaping the way we interact with everyday devices, expanding beyond computers into cars, televisions, and even household appliances like washing machines. This year’s Consumer Electronics Show in Las Vegas highlighted this shift, with generative AI emerging as a dominant theme, pushing the boundaries of innovation across all aspects of daily life.
According to Ted Ko, President of Techko, a family-owned consumer electronics company based in California, this integration of AI into everyday products speaks to the typical cycle of consumer electronics—consolidation and expansion.
“Meaning that there will be specialized devices for one application that soon get merged into a single device”, providing the example of consolidating mp3 players, and cell phones, to create the iPhone.
“But I think now, we will see it go the other way around as people realize a single screen really can’t do everything.”
Unlike past waves of innovation, which were driven primarily by market demand, these advancements are increasingly influenced by government regulations, global sustainability goals, and the anticipation of heightened tariffs.
“It feels like this is the first time regulators and political affairs have been the main drivers for these industries,” Ko tells Startup Beat. “We’re still navigating this, but we hope people will benefit from these innovations.”
While governments worldwide iron out regulations and set sustainability benchmarks, the consumer electronics industry continues to thrive on fresh ideas that cater to the evolving habits of today’s consumers. According to the product design expert and engineer, entrepreneurs looking to break into the industry successfully, need to know that while their product design is important, so too is the need to understand their business model and how to navigate the shifting market.
The Impact of Market Shifts on Product Development and U.S. Tariffs on the Consumer Electronics Industry
The rapid rise of eCommerce has significantly shortened product life cycles, forcing companies to accelerate time-to-market strategies. “I think the consumer life cycles are just much faster because of eCommerce. Our time to market matters a lot,” Ko explains.
Meanwhile, global economic challenges, such as tariffs and supply chain disruptions, have led businesses to reassess sourcing, manufacturing, and distribution models. The recent announcement by the U.S. government of tariffs on imports from Canada, Mexico, and China can have significant repercussions for the consumer electronics industry if followed through, particularly for American manufacturers. These tariffs could lead to increased costs for raw materials, often sourced from these countries. As a result, American manufacturers may face higher production costs, potentially leading to increased prices for consumers.
Ted Ko further elaborates on the impact of tariffs, stating:
“For us, we not only anticipate the direct costs associated with tariffs (meaning higher retail prices that are passed on to the consumer), but we also anticipate other side effects that we’ve seen from the past few years to only get worse. Importers (U.S. companies) will:
- Shift supply chains: Targeting Vietnam, Cambodia, and other parts of SE Asia as manufacturing centers
- Overstock inventory: Companies will bring in more goods all at once to keep more inventory domestically
This could also cause some other adverse effects like clogged ports or slower shipping timelines.”
For startups and established companies alike, navigating these new economic realities will require strategic planning in the wake of these political discussions. “We’ve spent a lot of time evaluating our supply chains during the pandemic, and now tariffs add another layer of complexity,” says Ko. “Agility and adaptability are now critical for maintaining growth and delivering high-quality products”.
