Monday, May 15, 2006

The Tech Sector

I read a few articles over the weekend and that got me thinking about the tech sector. What's going to fuel the growth in this sector (consumer tech)? This growth is fueled on innovation, but it seems that we're being saturdated by this innovation. The other factor is that one of the characteristics of this sector is that prices almost always go down. Other sectors can kind of go along with the economy, but with this sector the price today compared to the price 6 months from now will be different.

Over the past few decades we have come up with some nice products.
Computers: the market is getting saturated (look at Dell), you can buy a laptop for under $400, and while some people say that the growth will be through replacements I'm not too sure. I'm using a one year old laptop right now. The laptops out today will blow mine away, but do I need this? Only a small percentage of us use the maximum power of our laptops. We don't run heavily intensive programs! Yes, the new laptops can hold more (but I still have 13 gigs on my hard drive) and programs will load faster (a few seconds...).

LCDs: these are catching on huge and the prices are dropping. Many suppliers are going the route of selling as much as they can at lower profit margins. As the prices continue to drop, some of these producers will get squeezed.

Music playing devices: the iPod has to be one of the fastests products to penetrate mainstream America. It seems like every other person has an iPod (also, some articles note that they have an 80%+ market share). What will they come up with next?
Here's what I want to see: Sirius + iPod. Sirius is coming out (or already have) a portable radio. Wouldn't it be cool if they could shrink it down to almost the size of an iPod and have a built in flash drive to carry music? Then you could have commercial free radio + music.

One off the subject note, but still semi-related. I just read that the 2007 Infinity G35 will come with a 9.5 gig hard drive to rip music. I really like the G35 and catch myself looking up how much the potential monthly payment will be (around $500/month).

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