There’s a lot of right in this piece about the implications of the nifty Surface tablet that Microsoft debuted a couple of days ago.
It’s going to be difficult for hardware makers to find room to profit in the future, and the moves of some of them (as he mentions, HP and Samsung) suggest they get it too. That’s because they’re going to be left fighting for margin in devices that are commoditized.
Think not? Look at what’s happening to HTC, Nokia and other hardware makers in the mobile space.
If you’re making devices based on someone else’s operating system (and someone else’s carrier network) you’re left with making cheap phones that are designed to obsolesce hours after their two-year contract expires. That’s not a recipe for standing out in the marketplace.
I think he overlooks one very big player, though, in ignoring Amazon, which has the cloud play, a reader device, huge other sources of revenue, and even an operating system (a heavily modified version of Android that is effectively it’s own.
- dbloom posted this