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The PC Company Invasion of Consumer Electronics

Techstination feature for Tuesday, December 9, 2003

Do companies like Gateway and Dell pose a threat to Sony and Samsung? Bloomberg Boot Camp, a report on today's technology. Dell and Gateway have gotten into the LCD TV business, expanding the number of models they sell during this holiday season. They are looking to consumer electronics to increase sales and profits. How does a company like Samsung view the new competition? Senior VP for Strategic Marketing Peter Weedfald...

"I think Dell and Gateway and even HP have earned the right to transcend their entire infrastructure around electronics to the consumer side. It's something they've earned the right to do. I think that for Samsung, who is now a leader and the number one provider of TFT flat panels worldwide, our leadership role is one that says there is going to be a consolidation.And the weaker will have to be vacuumed out."

And while Dell may sell LCD TVs to its PC customers... and Gateway may lure some TV buyers into its stores... with low prices...

"This position of trying to be a niggling, cheese paring deliverer of technology is a caution to the wind. It's difficult to be the low price leader, because what you'll do is over time you'll build a relationship with those consumers who like to buy the lowest price products. Which makes it difficult for you to raise the bar."

Samsung and others like Panasonic and Sony companies are hoping more people will opt to shop at traditional consumer electronics stores which offer more selection. Bloomberg Boot Camp, I'm Fred Fishkin.