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cookiejar
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When HiTech becomes an appliance.
cookiejar   1/31/2014 6:15:59 PM
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It seems that as the latest electronic devices become commodities, the originating companies get into trouble, because they are so used to the high profit margins of market leaders required for advanced engineering.

 We saw IBM get out of PCs.  We see Blackberry in trouble.  Nortel got wiped out.  Motorola has been bought out a couple of times.  IBM is out of x86 servers.   The Japanese audio/video companies are basket cases.

 As an electronic device becomes a commodity, consumers expect the 10 year service life of an appliance.  Margins get tight.  Smart phones are approaching the commodity level as are tablets.  Apple may get into trouble selling hardware, but iTunes should keep it afloat for a long time. 

Once a product becomes a commodity, incorporating planned obsolescence doesn't cut it with consumers.  Consumers expect a 10 year untroubled life from an appliance.  More and more people are becoming disgruntled with Windows.  Microsoft is diversifying into hardware, which does not compute, as it is used to high markup from its OS monopoly position, not the tight margins of an appliance manufacturer. 

We can see the struggle in the marketplace in audio/video products.  Audio has been a commodity for decades.   Sony, a market leader, used to high margins is in real trouble, selling off its capital assets.  3D is a faded hope, despite  3D BluRays and 3D TV.   4K  re-branded as UltraHD is a basket case.  There is no real 4K source material, except HD BluRays enhanced for HD to UltraHD processors.  Unfortunately, these 4K enhanced BluRays are unique to each 4K TV manufacturer.  There are no 4K broadcast standards being seriously considered.  Playstation and Xbox are repeating the HD-DVD versus BluRay war only this time half half-heartedly for  4K.   The average consumer couldn't care less about quality - witness the switch from CD to MP3 or mediocre BluRay sales or HDTV eclipsed by smartphone screens. 

China is being handed the exhausted technology leaders of the last century on a platter.  Is the only hope for U.S. companies patent royalties?   Technology is evolving away from the U.S.  Where is the next killer app?

AZskibum
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CEO
Re: Competition..
AZskibum   1/31/2014 4:08:42 PM
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It was clear from the start that Google only wanted MMI for it's patents. Some may say Google overpaid for those patents, but I bet Google doesn't see it that way.

zewde yeraswork
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Re: Competition..
zewde yeraswork   1/31/2014 1:48:23 PM
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They sure do seem to be shelling out a lot of cash for not very many patents...this may be a better deal on Gooogle's end on closer inspection.

junko.yoshida
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Re: Lenovo buys Dell for $5 billion
junko.yoshida   1/30/2014 9:19:52 PM
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But then, I must say, whey Dell? Why not Apple?

junko.yoshida
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Re: Lenovo buys Dell for $5 billion
junko.yoshida   1/30/2014 9:13:56 PM
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Ah, a good one, Rick!

rick merritt
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Author
Lenovo buys Dell for $5 billion
rick merritt   1/30/2014 7:52:15 PM
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Headline circa 2020?

rick merritt
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Re: Competition..
rick merritt   1/30/2014 7:50:14 PM
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@Anand: So Google gets $1.7M a year from Microsoft alone for a couple of the Moto patents. That would suggest a mill/patent ain't too far off...or is something wrong with my math?

Kinnar
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CEO
Re: A good hope
Kinnar   1/30/2014 2:34:00 PM
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Yes you are right 12.9 Million was the 3rd Quater sale of year 2013, but still 100% increase at level 3 position will be a tough task for them, but yes if it tend to survive the tough-phone giant Motorola it will be a good success. But I think Motorola opeartions will get merged under the Lenovo brand name.

smartbost
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Rookie
Another American Company Sells Out ti China
smartbost   1/30/2014 2:29:03 PM
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Who is next? GE? Intel? Lenovo is a good company that will continue investing where Americans, slave to stock market are not!

Anand.Yaligar
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Re: A good hope
Anand.Yaligar   1/30/2014 2:13:36 PM
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 Last year Lenovo market share was 12.9 Million units in Smartphone segment.

@Kinnar, I think its not 12.9 million but  Lenovo shipped an estimated 45 million smartphones. So 100 million looks like reasonable target.

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