VCs Funding Too Many Bluetooth Companies

from the watch-out dept

A report has been released saying that VCs are funding too many Bluetooth companies. The problem is that most of the investment is in chips, and very little of it is in applications. So, the theory is that there will be all these chips in search of applications. Of course, if one of those applications just happens to be a killer app, then the demand for chips might just work out. The other problem, though, is that the main reason for the focus on chips is the margin - but if there are too many companies producing too many chips, that margin will disappear.