CE is not that easy

Consumer Electronics are the new “IT” girl of Silicon Valley. Everyone wants to make mp3 players, phones and god knows what. Given that commoditization of components is running rampant, the barriers to entry are not as high they used to be say ten years ago. Getting IN is easy, staying there, however is difficult. Virgin Electronics despite a well known has left with a bloody nose, humbled by a one-two jab from Apple’s iPod. Gateway tried and back pedaled in its CE foray. And now there is news that HP is pulling the plug on its h6315 Pocket PC phone, after users complained of many problems, and the company could not offer support to its customer T-Mobile. This is a lesson for everyone else – consumer electronics and mobile phones business is not about just selling devices; its about after sales service and a great consumer experience. Its not selling PCs where most of us expect a mediocre experience. I expect more flame outs in the CE space. Also read, why Silicon Valley doesn’t really understand the consumers.

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