Fred Wilson writes:
The fact is the consumer electronics industry is not consumer centric. In fact, it makes an art out of being consumer unfriendly. It’s MO is all about locking consumers in, not opening things up. The carriers and cable operators make things even worse when telephony and/or television come into play. They lock you down even more with subsidies, proprietary products, and high price points.
Something has to be done about this. Entrepreneurs and VCs need to be able to play in the consumer electronics space. To date the venture capital industry has had pretty awful results in consumer electronics. There have been some successes, like Danger in the smart phone business. RIM is another example of a company where entrepreneurship succeeded in consumer electronics. But in reality, the venture industry is a trash heap of failed consumer electronics startups. And with VCs being wary of consumer electronics, entrepreneurs find it very hard to drum up the money to do interesting new things in this sector.