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Wednesday, 08 July 2009 13:48

Startups should look to hardware

Written by Nick Farell

Image

Forget the web and software

While Internet
and software startups are getting most of the attention, a top hardware designer claims that the money is to be made coming up with new hardware.

Gadi Amit, the founder and principal designer of NewDealDesign, which has come up with things like the Sling Box, said that the idea that software was the only place to go for new entrepreneurs was bogus. Writing in Venturebeat he said that software and web markets are so filled with dominant players that they are actually relatively difficult to break into.

Standard category leaders control 60 percent of the market. Runners-up to those leaders are left with 30 percent. And the crumbs are fought over by others in the category. But hardware products will have lots of competition and a wide market. The consumer market is wide open for new hardware ideas. Amit said that the manufacturing industry has grown in China and become more readily accessible to entrepreneurs. If you have a completed design, the manufacturers and component suppliers there are ready to help you begin building.

The recent rise of netbooks is a good example of how new ideas in hardware can make a buck while the other areas of the market are struggling.

Nick Farell

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