Cisco and Logitech are two companies selling an identical product: a TV that could now be used as a phone. Cisco claims it would allow video chats through HD TV. The package deal is: a remote control, a camera and a set-top box. The image displayed above is an example of a Cisco package (minus the TV). This package deal will cost $599 including a $24.99 monthly subscription fee. It will be available to purchase November 14. Is it that really a good bargain?
Logitech on the other hand, calls its “TV/phone” a Revue set-top box for Google. This software will allow consumers to navigate the Internet through their TV. The Revue top-box will cost $299.99 device. A $149.99 camera must be purchased for making video calls. Yet their bonus offering is that they will not charge a monthly service. This product will be on the market earlier than Cisco, by the end of October. On that note, is a consumer going to wait and pay $600 plus a $25 monthly fee (Cisco’s deal) or $450 (Logitech’s deal) in total?
Not only are the devices expensive, but the consumers also have to have a high broad Internet connection in order to really have a HD of the people they are video chatting with. Mr. De Beer argues however, that around 31 million US households already have the right internet broad connection and that in a couple of years, the number of households will double. Do both companies really believe people will buy these products? My roommate and I bought a cable that connects our laptop to the TV so we can watch movies full screen (and are already HD if viewed from Hulu, for example). I can just use the cable see my parents full on our TV when I Skype them. Not only do I not pay a monthly fee, but I already have an integrated camera as well. What does Cisco or Logitech have to offer me now?
Source of Picture and Article:
http://online.wsj.com/article/SB10001424052748703735804575536072370578924.html?KEYWORDS=telecommunications#articleTabs%3Darticle
Interesting post, Maria. I see that you think these new products are irrelevant--what do you think Logitech and Cisco were thinking in developing/offering them. Maybe they're aimed at a different market than college students--what about businesses? Or are they mostly aimed at households, in which case the price tag is pretty steep for something that could be rigged from existing technology?
ReplyDeleteI think that Logitech was attempting to fool its audience into purchasing a product that is useless. I'm kind of disappointed that both company's have not tried to have something more original. I feel like no matter who they are targeting it is still useless. For households, Skype is much more convenient since it is free. Business now can use the new smartphone where you cans see each other whilst talking on the phone.
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