Moritz, the Midas List, and the Consumer Electronics Meltdown

Sequoia’s Mike Moritz heads up Forbes’ Midas List of technology dealmakers, swapping spots with KP’s John Doerr. The same issue includes some musings from Moritz (with which I agree) on the coming consumer electronics VC catastrophe:

Consumer-tech businesses, [Moritz[ says, are a pit of “muck and mire.” They have low margins, require massive marketing budgets, compete with monster retailers’ house brands and face Asian copycats. Though he has helped fuel the consumer craze, he laments the rise of handheld gadgetry: “The march of consumer technology will spell an end to tranquility,” he says. “Most of the venture money going into consumer-related companies will be squandered, and the rest will be lost. It will be brutal.”

Granted, Moritz may very well be engaged in a tiny bit of misdirection here — why would a first-tier VC ever tell people what sectors he actually liked? — but his points are still savvy and well-taken.