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Substitutes for consumer income...

Recently, the financial press in USA when reporting on computer sales said that it was sluggish and attributed to people spending their money on high-end television sets (like HDTV or advanced flat screen TVs). Quite interesting because here people are substituting their laptop purchase to HDTV.
I think consumers are setting aside a certain percent of their income for aspiration products or technology products. This would spell a lot of trouble for producers as they would have develop products that not only compete against their own segment competitors (For example Dell laptops against Sony Vaio) but also with others in an entirely different segments (For example, laptop manufacturers with TV manufacturers). I also feel when this happens at a more frequent and in a significant manner, there might be convergence of products wherever possible.
One personal example, my wrist watch stopped functioning in Novemeber 2004. I used to wear the watch at all times and used to be time conscious (not essentially being punctual!!). But, around the same time, I started using mobile phone and surprisingly I have not bought a new watch. Coming to think of it, I am not willing to spend money on a wrist watch because my moblie can do the function. Yet another example of how technological developments will throw up unconventional competitors.

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