The CE Bubble

Posted on December 4, 2003 by Gene

You know, after reading the story about the woman who was trampled by mad consumers out to pick up a cheap DVD player, I stopped for a moment to think about the DVD player itself.
It was $30. And that’s not the lowest price out there.
Circuit City is selling a “mystery brand” 5″ television for $10. Radio Shack has a 3″ LCD TV for $50. Remember when these were hundreds of dollars?
Today you can pick up pricey cell phones for free, DVD players for less than a family meal at KFC, and wi-fi access points for a negative cost once you get a rebate.
How can this be possible? I can’t believe that you can build a television for $10 nor are wireless companies making enough money from their customers to cover the cost of the phone AND the service AND the infrastructure.
I have a sinking feeling that these incredible deals are going to lead to a collapse in electronics firms, the same way that the .coms fell…