March 4, 1999
from the Friends-of-the-Revolution dept
Consumers Bust A Move
By Brian Day - March 4, 1999The recent outbreak of cheap integrated computers (the iMac being the most visible) has truly been phenomenal.? There is much debate over what this means to the PC industry.? Many people believe that the recent "flavor announcement" from Apple is an unsustainable gimmick.? Perhaps the answer has already been played out... in the '70s and '80s stereo industry.? While the current time frame may be compressed (internet time), the markets have some interesting similarities.
Disclaimer: I am not a stereo guy so please no letters if some of this is blatantly wrong.
PC = Hi-Fi
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The PC is similar to the early days of
hi-fi components.? It started with a bunch of enthusiasts who were
willing to pay for separate pieces of an overall system that they assembled
themselves.? One of my friend's dad in 6th grade had this massive
system that had at least 4 components that I had no idea what they did
(the only feature was an on/off switch and a joystick).?? These
stereo aficionados were concerned about everything... right down the the
gage of wire used to the speakers (remember Monster Cable?).? There
was a strong sense of pride in one's system.? The stereo components
were complicated, with little or no styling.
Winners = Performance, Quality, Features (Techniques, Pioneer, Crown)
iMac = Boom Box
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The iMac is a whole different animal.?
It is not meant for Hi-Fi lovers.? It's a boom box.? Everyone
has a boom box (or two).? They're cheap, stylish, integrated, and
easy to use.? They have decent sound and pretty good power.?
The box cannot be upgraded, and for the most part people don't care how
it works.? In the 80's the boom box grabbed three new segments: first
time buyers, low cost second stereos, and portable systems.
Winners = Style, Price, Performance (Sony, Pioneer, Panasonic, Fisher)
What does it mean...
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I believe that the cheap integrated computers
are a new segment which will not replace the existing high end segment.?
I think the price will continue to drop to around $300-$500.? The
winners will be those manufacturers that can make a beautiful, functional,
cheap system and still make a profit.? Free PCs (sponsored by advertising
or percent of sale) will gain some interest and then die.? If this
business model works, why haven't radio stations given away free radios
that only play their station?
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Friends of the Revolution
by Brian Day
A column that comes out every so often, and talks about something or another... To subscribe to Friends of the Revolution email bcd2@cornell.edu
The information contained in this newsletter reflect the opinions of Brian Day, and do not represent actual fact. Any decisions made based on these opinions is your own fault. Yadda...Yadda... Yadda...
