Commoditization quake hits Consumer Electronics

The consumer electronics business is undergoing a massive upheaval as more and more players jump in with products that could only be produced by giants such as Sony and Panasonic till recently. Dell, HP, and nameless players are all riding the consumer electronics bandwagon. I had mentioned this in my story, The Rise of The Instant Company. But today Wall Street Journal has made it front page news, with this story, Off-the-Shelf Parts Create New Order In TVs, Electronics.

Of course Fortune had reported on this almost a month ago, but still it is a trend the mainstream media outlets have begun to notice.

bq. This sea change resembles the upheaval in the computer industry 20 years ago — and is driven by the same technological force. As more consumer gadgets are based on digital chips and software, standard designs are emerging, just as the personal computer took shape around Intel Corp. microchips and Microsoft Corp. software. Now, new players are using those designs to shake up the older order and push down prices. While it took three years for DVD players to go from $1,000 to under $300, the same drop took just two years for DVD recorders.

The story however misses the big point – the deflationary nature of the Moore’s Claw and how it is reshaping every aspect of our lives. My story had tried to address the issues of how to fight commoditization and start a company that can compete more effectively.