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News, content makers outpace hardware

News Corp and other content providers are poised to record faster sales growth than makers of hardware such as computers and cellphones as machines become increasingly commoditized, researcher ISuppli Corp said.

Global sales of content will probably match sales of hardware in about five years, Derek Lidow, chief executive officer of ISuppli, said at a technology conference in Seoul yesterday. Content sales were about US$400 billion last year, compared with US$1.3 trillion for hardware, he said.

Other content makers whose sales are on the rise include Apple Computer Inc, which is benefiting from its iTunes music download Web site, Lidow said.

Major makers of computers, chips and mobile phones face falling prices amid intensifying competition as smaller rivals close in on their technological and manufacturing prowess, causing a drop in shares of hardware firms such as Dell, the world's biggest personal-computer maker, last year. By comparison, shares of search engine Google more than doubled.
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