Two Camps -- PC and CE Vendors -- Compete for Dominance in Home Entertainment Technology, Says ABI.Business Editors/High-Tech Writers
OYSTER BAY Oyster Bay, uninc. area (1990 pop. 6,687) of the Town of Oyster Bay, Nassau co., SE N.Y., on N Long Island, on Long Island Sound; settled 1653. It is chiefly residential. , N.Y.--(BUSINESS WIRE)--Jan. 6, 2004
PC vendors have been aggressively entering the consumer electronics (CE) market, attracted by the huge profit margins of high-end CE products. This insurmountable task will not be easy, and PC manufacturers' present strategies will not afford them the opportunity to wrest wrest
tr.v. wrest·ed, wrest·ing, wrests
1. To obtain by or as if by pulling with violent twisting movements: wrested the book out of his hands; wrested the islands from the settlers. a major share of revenue away from the incumbent CE leaders in the near future, according to technology research firm ABI Abi (ā`bī) [short for Abijah], in the Bible, King Hezekiah's mother.
(Application Binary Interface) A specification for a specific hardware platform combined with the operating system. .
For the most part, PC manufacturers are joining the CE herd because the PC industry is now commoditized -- there are too many vendors offering similar products resulting in severe pricing pressure. Due to this downward momentum, profit margins for the manufacturers have dwindled in recent years.
Another motive for PC vendors' move into CE devices is convergence. Digital convergence between CE products and PC-based products is a natural, logical confluence of the technologies. Leading PC software and hardware companies, such as Dell, Microsoft, Intel, HP and Gateway, would prefer to seize control of the redefined CE landscape. According to Vamsi Sistla, Director of Broadband Research at ABI, "computing power, residential broadband access, and home networking are the three catalysts that are driving this convergence. Responding to the threat from PC vendors, many of the leading CE vendors, including Panasonic, Sony, Philips and Sharp, are arming their 'traditional' CE products with computing, broadband and networking capabilities."
Leading PC vendors seek to tap the additional growth afforded by the broader, and larger, CE market. Through initial successes with digital cameras and camcorders, PC vendors have already successfully entered the low-end market. Conversely, the high-end markets for PC manufacturers would require selling digital TVs and video host devices, such as PVRs (personal video recorders), and later progressing to HD (high-definition) products. Entering the high-end CE market increases vendors' reliance on Asian ODMs.
"High, sustainable profit margins with high-end CE products might not be possible, however, as more and more vendors enter the market, potentially repeating the PC industry's present situation," continues Sistla. "In the end, continued product differentiation Product Differentiation
A source of competitive advantage that depends on producing some item that is regarded to have unique and valuable characteristics. -- combined with meeting consumers' needs -- will be a path to success for either camp."
ABI's Residential Entertainment Technologies Quarterly Service (RETS) offers the latest market forecasts for different display technologies including liquid crystal display liquid crystal display (LCD)
Optoelectronic device used in displays for watches, calculators, notebook computers, and other electronic devices. Current passed through specific portions of the liquid crystal solution causes the crystals to align, blocking the passage of light. (LCD), plasma and digital light projector (DLP (Digital Light Processing) A data projection technology from TI that produces clear, readable images on screens in lit rooms. DLP is used in all types of projection devices, from data projectors that weigh only a few pounds to large rear-projection TVs to electronic ), as well as for other digital devices such as DVD DVD: see digital versatile disc.
in full digital video disc or digital versatile disc
Type of optical disc. The DVD represents the second generation of compact-disc (CD) technology. players/recorders, digital audio products, personal video recorders (PVR See DVR. ), game consoles, and wireless and network-enabled digital products. RETS provides detailed market segmentation Market Segmentation
A marketing term referring to the aggregating of prospective buyers into groups (segments) that have common needs and will respond similarly to a marketing action. coupled with insightful analysis, and clients are given quarterly updates of the latest trends, news, and vendor announcements.
ABI is a N.Y.-based technology market research firm founded in 1990. ABI publishes market research and technology intelligence on the wireless, automotive, electronics, broadband and energy industries. Details can be found on the web at abiresearch.com or by calling 516-624-3113.