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Android 2.0 and the Death of Consumer Electronics

By Erik Sherman | Oct 29, 2009

The year was 2009; the month, October. News came of the end of the last specialized consumer electronics device. The GPS, which had seemed destined to continue its existence, passed on at the announcement of the Google Maps navigation feature on Android 2.0. OK, a bit exaggerated, but not by much. The current stock of smartphones is showing how many categories of consumer electronics are simply going to disappear, because virtually no one will need them — particularly when the feature set is so much richer. The vision of device “convergence,” long touted as something to desire, will suddenly bite a lot of vendors on their rear ends when they realize that it also means a tumbling opportunity to sell product and, ultimately, a shrinking consumer electronics market.

People are talking about the new Motorola Droid being a GPS killer, but that’s just one category. Next up, cameras, both still and video — 5 megapixels (often more than enough, as I’ve found in my photographic work) with white balance, scene modes, and 720 x 480-pixel “DVD quality” video images. Right now too grainy, according to the PC World review, but something that can certainly be fixed.

Other categories? How about MP3 players? If you look at unit product sales for Apple, it’s clear that as the iPhone increases in popularity, the iPod falls. Granted, that still leaves millions of the units going out store doors, but it suggests what will happen when a majority of handsets become smartphones with storage and user interfaces that make the devices a natural choice for downloading and playing music.

Portable DVD player? I don’t know about your family, but my daughter watches video on her iPod touch. Digital recorder for taking notes? Please, not with a straight face. And with the applications available now or soon coming you, consumers will have all manner of software that will eliminate for many (though not all) the need for a netbook or laptop. But while everyone is drooling, there must be executives scared witless. As you roll first one thing and then another into a single device, you eliminate the need for additional purchases. It’s the logical extension of the march of semiconductors, with a single chip adding ever more functions. Eventually you buy only a fraction of the chips you once needed, and a lot of companies try to figure out what to do with their spare time. Now that’s going to happen on a device level, when suddenly there’s nowhere left to run for anyone.

Image via stock.xchng user mzacha, site standard license.

Erik Sherman is a freelance journalist whose work has appeared in Newsweek, the New York Times Magazine, Technology Review, the Financial Times, Chief Executive, and other publications. Follow him on Twitter.

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    1

    KTidrick

    10/30/09 | Report as spam

    RE: Android 2.0 and the Death of Consumer Electronics

    Erik - I respectfully disagree with MOST of your points here. Yes, multi-function units are growing in popularity, but not EVERYONE is interested in this waterfall approach to personal electronics or "device convergence". I am speaking for myself here, but I suspect - and hope - I am not completely alone... happy

    GPS - the new device offers intriguing capabilities, but is cellular access dependant which is a problem in two ways for me:
    a) My stand-alone GPS unit has WAY better coverage in more areas than my Verizon cell phone.
    b) I simply do not want or need to pay the premiums for cellular internet service. As a related aside, this is also the reason I have an iPod Touch INSTEAD of an iPhone - a choice I remain very happy with a year beyond my decision.

    Portable DVD - it's cool to be able to watch video clips (and movies) on my iPod touch.... alone and even then only "sometimes". I have 3 small children. Oftentimes even the 7 or 9 inch screens on a portable DVD player is too small, and small screen presentation simply does not compare to or replace the enjoyment of a larger screen view. The small screen such as an iPod or iPhone is a novelty capability, but does not nor will it replace my general vieweing preference.

    Granted, my individual perspective will have little affect on the larger market shift, but personally, I am not thrilled with the whole "convergence" scheme. But, maybe that's just me...

  •  
    2

    ErikSherman

    10/30/09 | Report as spam

    RE: Android 2.0 and the Death of Consumer Electronics

    What would life be without disagreement? I'm not personally crazy about convergence either, so in terms of inclination, you could count me on your side. But I notice how many people, particularly younger ones, watch video on cell phones and iPods, and I see how the economics will go. Of course not everyone is interested. The question is what the trend will be over time and where the companies will go with their product launches.

  •  
    3

    kfconme

    11/01/09 | Report as spam

    RE: Android 2.0 and the Death of Consumer Electronics

    How are the two of you not a fan of convergence? I could understand if it were
    sacrificing performance (KTidrick's GPS getting better coverage) but from my
    experience with google's map/GPS app on the iphone, I don't see it lacking from a
    standalone in anyway, whatsoever. It does away with bulky, expensive standalones
    in the car; it's a no-brainer.

    As for media on the cellphone, I've seen plenty of people on the subway with
    them. I still prefer my ipod only because of the amount of space; I can hold my
    entire library of music with some select movies. If a phone came equipped with
    enough space and a good UI, I'd drop my ipod in an instant.

    convergence = convenience.

  •  
    4

    KTidrick

    11/02/09 | Report as spam

    RE: Android 2.0 and the Death of Consumer Electronics

    kfconme states:

    How are the two of you not a fan of convergence?

    then...

    convergence = convenience

    Well, for ME (caution - data sampling rate is a population of 1...)

    convergence (may) = convenience = cost
    as stated initially, the "convenience" of all this service in one device significantly increases my cellular service expenditure. Not good. While I am a "little" limited on access, I pay little or nothing for the infrequent times I demand I-net access on the iPod Touch. And, not only do I have better (read "out in the mountains on my motorcycle") coverage with my GPS, I pay NOTHING for that service...

    ALSO,

    convergence (may) = convenience = dependance
    When everything runs on one device, and you "need/want" those capabilities, you BETTER take really really good care of the device. One failure and you are down - across the board. For example, on a recent camping trip I accidentally let my iPod Touch get wet - fizzle-n-die. It was a while before I decided to pay the $$ to replace it, but in the meantime I still had a cell phone and I still had GPS capability. I was not totally dependant on one device.

    Just my opinion - as they say, YMMV.

    Best regards,

    K. Tidrick

  •  
    5

    dmsilva1

    11/02/09 | Report as spam

    When will celebrate the death of the convergence myth?

    I love convergence, and used to believe in the convergence myth in which two product features combine to eliminate the separate products themselves; however, with very few exceptions this just isn't the case.
    The TV/VCR never replaced either the TV or the VCR; the boombox never replace the component stereo system, the media center PC didn't replace the stereo, PC, home server, or digital tuner.
    Most people point to the cell phone replacing the PDA as the bright shining example of convergence. I suppose that is true; however, I stopped using my PDA long before my cell phone could do half the things my PDA could. I just didn't find the PDA as useful so I stopped using it.
    ALL of the above mentioned convergence products worked for some market segment. Many people are happy with them, but I have found that most people prefer an uncomplicated, easy to use, product that gets the job done- and quite a few people will pay extra $$ for specialized product that gets a specific job done really well.
    Quick quiz:
    This morning did you:
    A) Clicked the space bar on your computer keyboard?
    B) Clicked the End button on your phone?
    C) punched the snooze button on your alarm clock?

    Full disclosure: I did A, B and C had all three setup with alarms- I really needed the backup after last weekend!

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