Recession or Reorganization? A Boom For Tech?
This post was published 11 months 1 day ago and its content may not be valid anymore.Around the world we are strapped with a financial situation. We have lived beyond our means overextended in credit – pay now worry later. We see traditional businesses suffering, Auto makers screaming for help.
Is it that people are not spending money any more or that business has undergone its most radical shift in years? Lets take the auto manufacturers for example. The automobile is essentially the same today as it was when it was invented. LIttle innovation has been made to shift us away from the fossil fuel burning model.
When we suffered our multiple oil shortages and price rigging auto manufacturers did the minimal amount of work to reduce our dependence of fossil fuel. Sure, they have produced token cars that are hybrid but the innovation is stalled.
People around the world have decided it is too expensive to possess an automobile and now automakers are looking for bailouts. Will this help the automakers? Doubt it.
Tech however is recession proof, people are always innovating. Its in the human DNA. To solve this oil dependence problem new technologies must be developed to more efficiently burn fuel or come up with alternative options.
Lets move beyond the car. People are unwilling to pay a premium for gadgets anymore. A $5,000 flat screen TV is out of the question but with R&D prices have plummeted. My TV that cost $2,500 a year ago costs only $1,200 today. DVD players can be bought for $20, BluRay Players for $150. Lets look in the mobile space, manufacturers are driving prices down. $200 for an iPhone rather then $500 a year ago. Blackberries for free. Don’t tell me that people will all of the sudden stop using a cell phone. Software is no longer $500, developers are coming out with cheaper more frequent updates. Its a price correction in full effect. Sure legacy businesses and products will suffer in the short term but adaption and investment in R&D tech will allow products and brands to evolve to the new tastes of the consumer. Gone are the days of fat profits and wasteful products. Companies that are lean and focus on highly refined desirable products will succeeded. Those who resist the trend will fail.
Agreed. Something that has been puzzling me is that gas being half it was this summer I am saving $60 everytime I fill up. that about $240 per month that I have now that I did not have this summer. Can I be the only one better off now than just 6 months ago. Let the markets work. i am sure the people that made buggies and whips would have liked a bailout when the internal combustion engine was made.
First off, even though technology is always innovating itself, it doesn’t make it recession proof. The biggest problem that I have with technology is the continual innovation, which eventually forces you to upgrade everything. For example, if Apple decides to release a faster iPhone, with better speeds, and can play flash etc. companies making these mobile sites and apps will just put more jumble and flash in them and on the mobile site, making your current iPhone obsolete, and pushing you to get the next one. Thats why when you buy a computer everything seems so fast and snappy, but by the time you are ready to get rid of it, the computer is old and slow. Computers struggle to keep up with the technology that pushed them. Your old computers go slow because they can’t handle the technology built for new machines, not because they were necessarily slow.
New technology is good, but I will rest my case with this: Do you really think it is necessary for Adobe to release a new version of Photoshop each year? Don’t you think ONE time they could get it right for 2 years? or 3? Or just have ONE photo editing program with upgrades available… technology is a scam, everyone is just trying to make a buck…
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