Yeald has published an editorial that says Sony, Apple and the Chinese are preparing to boot Dell and HP. According to the article, the increasingly commoditized PC market will develop a sharp dichotomy between ulra-cheap and lifestyle computers. Marcel van Leeuwen, CEO of Yeald, writes that neither HP nor Dell are ideally suited to compete in either market in the long run, but that Apple and Sony are well-positioned as lifestyle brands, while the Chinese will be able to out-cheap Dell. From the article:
Some commodity markets allow for the existence of a premium segment. The premium is based on perceived advantages that arenit based on the productis primary functions but on superimposed impressions such as design, name and perceived associations, like success and youth.
Since computers carry out applications that are important to users, and they are being seen with their computers, it is very likely that the market will have a premium segment based on lifestyles, both in leisure and professional dimensions.
Therefore, the market is likely to be divided between discount products and lifestyle products. Dell isnit very well positioned for any of these two segments. Neither is HP.
Further comments in the full article about Apple are general in nature, but deal with the companyis success in branding, and how that will help both Apple and Sony.
Yeald is a publication whose stated purpose is to foster dialogue between shareholders and companies. The editorial we mention is part of a series on the future of the PC market, including an article explaining why further commoditization hurts Dell, and issues that Yeald thinks HP is facing.