Make it easier to make it cheaper

Read this recently from Venture Beat:

What I want to play with [assuming the role of VC for a moment] is the intersection of these web platforms with cheaper components. Arduino’s latest wi-fi module with a half mile range hints at what’s coming. And with all eyes on Chrome don’t forget about Mozilla.

I do wonder: why would emerging markets give USA manufacturers their people, their factories when they can build low-cost computing devices themselves?  Then they can sell whatever they build in their local markets [or if you’re say a Mexican manufacturer] pan-region.  Isn’t this disrupting the supply chain in reverse? I can imagine a day when USA consumers looking for deals [let’s call it the budget category – ask yourself: how many of your friends buy a new PC every year?] start craving these low cost devices, then go looking for them in the emerging markets where the local product is as good as any product built by USA manufacturers.

Meanwhile I see some large companies are continuing to apply price pressure down while moving value up – it’s built in marketing – by selling mid quality hardware loaded with high quality software.  Consumers get more for less; or so the pitch goes.  Quality of hardware does matter, but it matters less as the software inside meets all your digital life needs.

Holiday shopping season in the USA is coming up; let’s see what shows up…


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