And so they should. The PC is being commoditized. This from today’s New York Times.
SAN FRANCISCO — The personal computer industry is poised to sell tens of millions of small, energy-efficient Internet-centric devices. Curiously, some of the biggest companies in the business consider this bad news.
In a tale of sales success breeding resentment, computer companies are wary of the new breed of computers because their low price could threaten PC makers’ already thin profit margins.
The new computers, often called netbooks, have scant onboard memory. They use energy-sipping computer chips. They are intended largely for surfing Web sites and checking e-mail. The price is small too, with some selling for as little as $300.
The companies that pioneered the category were small too, like Asus and Everex, both of Taiwan…
What’s strange is that anyone should be surprised by this. It’s been obvious for years that this is what would happen. Outside of the luxury markets, a technology is always commoditized if there’s sufficient demand for what it offers or provides.