Word: pc
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...took a beating Monday after analysts downgraded it. (It dropped more than 2.5% within a few hours of the announcement.) A report by the NPD Group, which tracks retail sales, showed that Apple store sales declined 1% in November compared with a year ago, even at a time when PC sales increased 2%. Analysts, extrapolating to the pending post-holiday doldrums, when No One Will Buy Anything Ever Again, deemed this significant. If people stop buying stuff, that goes double for expensive stuff. And Apple occupies the premium space in the computing world. Jobs has famously and consistently refused...
...higher-end models. Both produce high-definition video. Both have USB plugs that pop up at the touch of a button, switchblade-style, so you don't need a separate cord to connect them to your computer. Both have super-easy-to-use editing software (Kodak's is PC-only) that lets you snip together movies and auto-upload them to YouTube. The biggest downside: neither comes with image stabilization. At least not yet. (See the 50 best inventions...
...going into economic prognostication. But I do think that, in essence, the computer is a tool of productivity, and in typical, traditional downturns in the past, tech has done better than other industries for that reason. The other thing that has happened since the last downturn is, the PC has become indispensable. This is the first time in our lives when, if you go home tonight and your computer breaks, are you going to say "Oh well, we're in an economic downturn, I'm not going...
...already a relatively highly automated society. PC penetration is already very strong at the household level. Basically any house that wants one, has one. It's hard to imagine what the next big thing might be that everyone is going to want, that's going to be big enough to drive the economy out of a recession. The 800-pound gorilla in the room is the housing market. Until that sorts itself out, it's going to get worse until it gets better. And when it gets better, it will be a driver of change...
...with the Apple tax comes peace of mind. A major virtue of Steve Jobs' control-freak ways is that if something goes wrong with your computer, you know whom to blame. You call Apple or go to the Genius Bar at an Apple store. End of problem. With a PC, though, you have to try to figure out if you've got a hardware problem or a software problem. Invariably, you will be wrong, and the Microsoft-support rep will refer you to the PC manufacturer. Or vice versa. Repeat...