The PC as a gadget
How would you describe Apple - a computer or a consumer electronics (CE) company? Whichever you decide, what is beyond dispute is that Apple's popularity and fortunes went exponential after is became a CE household name with the iPod.
Apple had always played the underdog to Microsoft in terms of the number of PCs sold containing their respective operating systems and, despite the incessant claims of its slavishly loyal fan-boys, looked destined to stagnate in the background.
But by diversifying, while staying true to its marketing oriented strategy, Apple not only created massive new markets for itself, it also created a ‘halo-effect' that increased overall brand awareness and, consequently, the popularity of its Mac PCs.
A month or so ago, in launching its ‘Vision' consumer notebook strategy, chip maker AMD finally conceded that it was futile trying to compete head-to-head with Intel on what it calls "speeds and feeds".
Furthermore, AMD reckons your average consumer isn't even that bothered about gigahertz and megabytes anymore, and is more concerned with how PCs look and how they can be used for entertainment. In other words: typical CE buying behaviour.
AMD seems to have learned from Apple's experience and is gambling on consumer attitudes having changed in its favour. On paper at least, this strategy of marketing the PC as a consumer electronics device seems sound. They're cheaper than ever, meaning they're much more of an impulse purchase than they used to be, and they're increasingly becoming an entertainment hub.
