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Analysis: How Apple is changing the CE industry

Posted: 26 Nov 2009 ?? ?Print Version ?Bookmark and Share

Keywords:consumer electronics? CE market? Apple business? smart phone?

Consumer electronics SOP
Apple will continue to dominate, as long as it doesn't deviate from a new set of rules the company created.

Either by design or serendipity, Apple defied almost every tradition consumer electronics manufacturers have developed as standard operating procedures (SOP) for winning in the take-no-prisoners CE market.

Here are five tenets traditional consumer electronics companies have long abided by, but which Apple has proven "no longer relevant":

1. Get ready with 'a range of products'offering different performance, price tags and feature sets. Don't come out with one "star" product, assuming that it alone can fascinate the masses. Variety is vital in the consumer market.

2. Play well with others. Proprietary devices that only work within your own hardware/software environment will go nowhere. A consumer expects his Sony TV will work with his Samsung Blu-ray recorder.

3. Have no illusions: You are in a low, low margin business. Ultimately, your expertise in managing cutthroat price battles will ensure your survival in the consumer electronics market.

4. Be prepared to wow the market with never-seen-before specs, with things like the thinnest flat-panel TV; with ultra high-definition pictures such as 7680 x 4320 pixels (i.e., 8K resolution), and 3840 x 2160 (i.e., 4K resolution), and 3D TV. These tech-driven enhancements will burnish your reputation as an "innovation" leader in the consumer business.

5. Accessories and peripherals are where the profits are. Even when the price of your flagship device may be slashed to the bone, peripherals and must-have accessories will still sell at retail. What you lose on the cucumbers, you make up on the bananas.

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