Sunday, December 12, 2004

Remember Cheap Transister Radios

IBM sold their PC unit to the Chinese. Old news from last week, right? Yes, I am right it is old news.

Not everyone remembers when the cheap portable radios from Japan entered the USA market in the 1950's and in a big way. That's way old news. Way old. Way. Radios went from costing half a week's paycheck to just two hours of labor and it was portable. The American manufacturers couldn't compete, but they complained and no one cared. What does a comparable product today cost? What about the iPod? It's cute, portable, and cheap. It's what a day's wages? What do they hold now? 40 gig? something like that. It's a lot, I tell you. More than I can count.

Let's think for a second. Emerging economy. Cheap labor. Open software. Commodity parts for a commodity product. Getting the picture? How do $200 laptops with 800 gig hardrives, with DVD-RW sound?

Let's see how long it takes. I bet less than 3 years.