The gadget industry

Filed in archive Market on August 28, 2006

Short, but useful: ZDNet writes about success factors in the gadget business based on a new book.

George Bailey and Hagen Wenzek recently wrote the book "Irresistible! Markets, Models and Meta-Value in Consumer Electronics" to explain how consumer electronics companies can improve with breakthrough technology, strategic partnerships and-- though it may sound obvious--paying attention to customers.

The key: Cooperation, because of the high costs of innovation
Example: Apple, Sony & Ericsson, Nokia & Siemens

And they focus on the factor time: Ten years ago, you could buy a decent one for $50 [CD Player, Michael]. Now, instead, people are buying $300 MP3 players.

What brings another key: I'm sure that high-tech should learn fast from the fashion business - permanent new things, lifestyle, user-centric, design (function follows form will become _the_ trend here).
No wonder that Bailey brings an example that sounds typically fashion business like:

"Or is it going to be a new entrant, somebody who comes in laterally from a different direction, focused on the consumer and just pulls everybody who makes devices along with them? That's the real question."

read on:How to succeed in the gadget biz