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« Sunday « January 11, 2004
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Profitless Prosperity?
(GigaOm)
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Om Malik: "The consumer electronics companies have a better track record of selling televisions, CD players and DVD players. They know how to support these products, have a business model which is based on single digit profit margins, and have the inbuilt advantage: consumers know that Panasonic would not change its mind about TVs, but Gateway might."Malik addresses something that's become more obvious to me each day. When I was watching the NFL Playoffs yesterday, I noticed Gateway's ads for 42-inch plasma TVs. And thinking: "But why would I want to buy a TV from Gateway? They make PCs!" Classic "marketing myopia" aside, isn't it always a recipe for disaster when companies start getting into markets they don't really belong? Here's where I think Apple's got it right, because their computers help people do cool things with their computers ... not with their TVs. Leave that to someone who knows, like Sony.
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