Gadget Makers Report Lower Profit Margins in Spite of Gadget Boom
Filed in archive Tech News Around The World by Eric Hanson on January 9, 2007
The problem: despite the enormous demand for gadgets (sales went up thirteen percent in the US in 2006 and eighteen percent in Western Europe in the first half of 2006), the high amount of available devices and the fleet of manufacturers means that the average profit margin
is about six percent. While this situation is great for consumers like you and me (oversupply = price war and lower prices all around), it's not so good for the gadget companies, which means that eventually some of them will fail or get out of the consumer electronics game. When that happens, prices will go back up, profit margins will increase and - possibly - the amount of innovation in the market will decrease. Like I said, it sounds like you'll want to go looking at TVs before consolidation becomes a major factor in the price you'll pay.
Permalink: Gadget Makers Report Lower Profit Margins in Spite of Gadget Boom
Tags:
gadget
price
war
consolidation
2007
profit+margins
margins+spite
gadget+makers
Trackback: http://publish.creative-weblogging.com/publish/mt-tb.pl/48695
Mr Wong
| 
