Watching the 'digital hand' | CNET News.com
Bill Gurley, a general partner at Benchmark, surmises that a number of
changes afoot in the technology sector -- such as the digitization of the
consumer electronics industry - can be explained by the presence of an
Adam Smith-like "digital hand." The ‘digital hand’ is a "true boon for the
consumer," ensuring high-end technology at low prices. For tech companies,
though, the ‘digital hand’ means compressed profit margins, increased
competition, lower barriers to entry and a shift in pricing power to
companies with superior distribution networks. The bottom line: "Consumers
will be blown away by the incredible products they are able to buy at
shockingly low prices. Companies will be blown away by how incredibly hard
they have to work in a shockingly competitive industry."