"Low Price" Doesn't Lead to High Profits

Keeping consumer electronics out of the commodity trap

Consumer electronics manufacturers have enjoyed solid revenue growth, thanks in part to a revolving door of new next-generation products. But they have not had similar success with profits. With digital technology and the interlinking of TV, stereo, multimedia and games consoles, the only manufacturers earning profits these days are those that recognize that the game has changed. Rather than focusing on products, they are focusing on meeting consumers’ emotional needs.