Monday, November 15, 2010

Schumpeterian Creative Destruction: 10 Products, Businesses Being Destroyed by the Smartphone


1. PDAs
2. Flip video cameras
3. MP3 Players
4. Digital cameras
5. Handheld video games
6. GPS
7. Regular cell phones
8. PCs
9. Watches
10. Remote controls


21 Comments:

At 11/15/2010 10:43 AM, Blogger juandos said...

Hmmm, didn't anyone learn the lesson of those multi-function printer, scanner, fax machines?

When one part breaks down, it all breaks down...

 
At 11/15/2010 10:49 AM, Blogger holeydonut said...

Except when an Apple iPhone breaks, the root cause is user-error. As a result, the customer happily pays Apple another $300 to buy a replacement smartphone (plus a new protective case to keep their new one from breaking as quickly as the broken one).

I don't think the smartphone has replaced the remote control just yet... I haven't seen someone use one regularly even though they have the app installed.

 
At 11/15/2010 11:31 AM, Blogger Buddy R Pacifico said...

#11 on the list are the cable tv boxes. A new I-Phone app brings cable tv to mobile phones.

 
At 11/15/2010 12:11 PM, Blogger Benjamin said...

In the private sector, hardware just gets better and cheaper all the time.

But hardware funded by public dollars, such as medical or military, just becomes more expensive all the time.

Solutions?

 
At 11/15/2010 12:51 PM, Blogger Ron H. said...

"Solutions?"

Missile defense?

There's an app for that.

 
At 11/15/2010 1:01 PM, Blogger Benjamin said...

'twas an interesting missile launch off the coast of SoCal recently. Probably a Chinese sub.

 
At 11/15/2010 1:31 PM, Blogger Ron H. said...

"'twas an interesting missile launch off the coast of SoCal recently. Probably a Chinese sub."

Possibly, but more likely just US Navy personnel learning that new Smartphone missile defense app that allows them to work from home. I understand it allows the sub to be entirely remote controlled. The GPS app is prerequisite training, but not all have finished it.

Incidentally, when the system is fully operational, the Navy will consist of only 12 operators...and of course 16,467 officers.

I also understand that Meg Whitman is a really sore loser. Her motto: If you can't join 'em, beat 'em.

 
At 11/15/2010 2:28 PM, Blogger morganovich said...

ahh, but consider all the things they are enabling:

facebook

opentable

twitter

numerous geolocation services

check deposit

the list goes on and on.

this one product has made dozens and dozens of services viable.

the great part of schumpeter is that unlike shiva (assuming i have my hindu doctrine straight), it tends to create more than it destroys.

 
At 11/15/2010 3:33 PM, Blogger Hydra said...

Who needs all this stuff?

 
At 11/15/2010 4:37 PM, Blogger Darren said...

The last three are kinda out there. Especially considering most people would sooner bury a universal remote in a shallow grave than figure out how to program it.

 
At 11/15/2010 5:13 PM, Blogger Jason said...

Benjamin, hardware gets cheaper, and only a rare few make money making it. Sounds like a quandry don't you think?

Military hardware is completely unique in that it doesn't completely leverage innovation in consumer electronics. Soft of like automotive electronics. And before people start throwing out "government and/or dying industries, figures!" note that there are a lot of good reasons for that. The primary one being reliability.

 
At 11/16/2010 1:18 PM, Blogger sethstorm said...

I'm not sure about that list.

2,3,5,7 are the only clear ones.

1,4,6,8,9,10 are iffy at best given that they supplement each other, versus replacing each other.


In the private sector, hardware just gets better and cheaper all the time.

Cheaper, but not better. I'd rather have some of the stuff that comes from our government contractors than what comes from the private sector, if not for the huge price tag.

 
At 11/16/2010 5:18 PM, Blogger Ron H. said...

"Cheaper, but not better. I'd rather have some of the stuff that comes from our government contractors than what comes from the private sector, if not for the huge price tag."

Most of the stuff from government contractors isn't available to you. What possible use could you have for a Sidewinder missile?

Is this an example of the high quality products from government contractors?

 
At 11/16/2010 6:33 PM, Blogger sethstorm said...

Juandos:
I believe the 2nd Amendment might answer the question about the Sidewinder missiles (and their associated support hardware). At what point is it too much weapon to apply?

Seriously:
Some of the computing hardware(that is publicly known) that goes to/comes from places like General Dynamics, Northrop Grumman, et al is a lot better than what mere mortals can afford. That, and it's a lot more likely to have a "Made in USA" origin as well. That, and it being more sophisticated than the stuff attached to today's game consoles.

 
At 11/16/2010 7:19 PM, Blogger morganovich said...

seth-

i don't think you have any idea what you are talking about with regard to computing hardware.

i know a number of quant traders at big firms, and none of them use any of that stuff. they can afford absolutely anything and would happily spend an extra $100k per box if it gave then an advantage. they seen no use for the northrop stuff. that's just special purpose processors for things like targeting and radiation hardened/emissions free systems for use in war.

i sit on the board of a company that does massive data crunching and object oriented data search for the NSA. they are using commercially available systems as well.

i have no idea what you are referring to at northrop, but based on the fact that none of the incredibly intensive computing users i know thing it's worth using, i suspect you are making stuff up unless you are looking for purpose designed code cracking boxes, which somehow i doubt.

 
At 11/16/2010 7:22 PM, Blogger morganovich said...

oh, and for what it's worth, the sony playstation 3 was initially banned for export because it was classified as a supercomputer, especially if you clustered the processors.

 
At 11/16/2010 8:18 PM, Blogger juandos said...

"I believe the 2nd Amendment might answer the question about the Sidewinder missiles (and their associated support hardware). At what point is it too much weapon to apply?"...

Well sethstorm to get a sidewinder to work you're going to have do some seriously heavy investing in the right type of aircraft, personnel, and ancillary bits and pieces to make it go...

sethstorm I'm guessing what you really mean is something on the order of a MANPADS like the stinger...

I'm thinking that in today's political atmosphere using the 2nd amendment as reason to own a handful of stingers might be a real toughie...

"Some of the computing hardware(that is publicly known) that goes to/comes from places like General Dynamics, Northrop Grumman, et al is a lot better than what mere mortals can afford"...

No I don't think so sethstorm, its amazing what someone who knows hardware and software can do with even just a few thousand dollars today...

Look at the HP Proliant line of servers for instance...

 
At 11/16/2010 11:05 PM, Blogger Jason said...

Morgan, Seth: Military hardware is not designed for pure processing power, so to speak. It's designed for a specific mission profile. And usually, the mission profile precludes the ability for the hardware to match many performance characteristics of consumer hardware, such as Mbits/second. However, that consumer hardware won't work at 110degC or survive a 10g shock or salt fog or survive an EMP...

 
At 11/17/2010 3:20 AM, Blogger Ron H. said...

"Military hardware is not designed for pure processing power, so to speak. It's designed for a specific mission profile. And usually, the mission profile precludes the ability for the hardware to match many performance characteristics of consumer hardware, such as Mbits/second. However, that consumer hardware won't work at 110degC or survive a 10g shock or salt fog or survive an EMP..."

So, seth, is this what you want? Something you probably can't use, can't possibly afford, but if you should drop it down the stairs it won't be damaged?

 
At 11/17/2010 3:25 AM, Blogger Ron H. said...

And, juandos, as you said on the original topic of Smartphones, as single points of failure, these things could be a disaster for anyone who doesn't consider backup or alternate methods.

 
At 11/18/2010 2:33 AM, Blogger sethstorm said...

morganovich:
I was trying to not be specific(defense contractors in general), but mentioned a few of the usual suspects. The stuff that isnt completely based off commercial off-the-shelf is what I'm talking about. Not the contracts with the Navy (HP), or Northrop's other ventures (The State of Virginia's contract for IT services).

I wasnt suggesting things on processing power alone - that blank was something you and others filled in. The durability and such other qualities that might have served the original purpose is what I was talking about.

Ron H:
While I may not be able to afford it new (or even get it if I had the cash due to how it is sold), the older stuff does get out. In usable form, and to mere mortals.

As badly as some stuff is made for consumers, it is not an unreasonable request. It's that some of us go the extra mile to avoid junk from time to time(as the private sector has written my demands for quality off as an acceptable loss, no matter how much I want to pay).

 

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