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Archive for the ‘recession’ tag

Where's the innovation? Right in front of you!

Posted on 27th Jan 2009 at 14:56 by Tim Smalley with 3 comments

Tim Smalley
It's fair to say that the current economic crisis has hit the technology industry - we've seen big layoffs at many of the biggest tech companies, with AMD, IBM, Intel, Microsoft, Sony and Western Digital all announcing significant workforce cuts. However, some companies argue that it's not just the recession that is killing their revenues - they're citing the rise in popularity of netbooks as a major catalyst as well.

Frankly though, the industry appears to be looking for a scapegoat and the success of low cost, ultra portable devices like netbooks seems fitting from the industry's perspective, but that doesn't make it right.

For example, Microsoft blames the rise of netbooks on its lower profit margins because it has to sell Windows at a lower price in order to compete with Linux-equipped netbooks. While that is fair enough, it is not a reason to hate netbooks - instead, Microsoft should think of it as another sale, because the netbook was and never has been sold as a replacement to traditionally more powerful machines.

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