Digital Planet, SA`s online electronic store, has expanded its range of IT products to include consumer electronics.
Customers can now buy computing and electronic products for home and work from Digital Planet`s online brand stores, at lower prices than standard retail stores are currently offering.
Digital Planet`s move to provide its customers with consumer electronics is largely driven by the convergence of computing and consumer electronics that is taking place internationally.
Global providers of information technology such as Hewlett-Packard are now moving into the consumer electronics domain which has traditionally been occupied by large consumer electronics organisations such as LG and Sony.
Says Neil Watson, Director at Digital Planet: "With the convergence of technology, the traditional boundaries between computing and consumer electronics have blurred, meaning that IT companies` products are being used in the home for entertainment as well as traditional computing functions."
He says the reason for this convergence is primarily due to technology convergence, but IT companies are aggressively moving into the consumer electronics space because manufacturers` margins are higher in the consumer electronics market than in computing. This represents a huge opportunity for added revenue and profitability for IT companies.
The benefit to customers is threefold: firstly, prices will decrease as IT companies are better geared for lower margin business which will drive the margins in the consumer electronics industry down. Secondly, the market will become more competitive which will result in better innovations and a faster product cycle. Thirdly, there will be more choice in the type of products and number of suppliers offering those products.
Digital Planet`s consumer electronics range includes digital cameras, plasma screens, mini hi-fis and hi-fis, TVs and DVD players. It currently has the full LG range and will add Samsung and Siemens products in the short-term.
Says Watson: "IT-consumer electronics convergence means fewer devices doing more in your home. We are becoming an always-connected society. You can purchase a song online, store it on your home PC, stream it to your hi-fi system and download it to your portable MP3 player. New products plus wireless advancements means that we have bandwidth all the time, connecting us with content on a permanent basis. Soon we will have easy access to all the information and entertainment we could possibly desire."
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