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March 25, 2008 | Comments: (0)
Is the slow economy hurting high-tech sales?
As the economy continues to dive, are we witnessing the first ripples in a revolt against consumerism and the spending attitude that typically says, "Damn the interest and full speed ahead with the credit card spending"?
Signs of change
Two events indicate that such change is on the way.
First, Sirf Technology Holdings, a GPS (Global Positioning System) chipmaker announced today it is laying off 7 percent of its workforce due to an expected downturn in first-quarter revenue.
The company outlook went from revenue of $71 million to $77 million to $60 million to $62 million.
According to the Wall Street Journal, the reduced revenues are due to softer demand for GPS systems in autos.
What does this mean?
I think it may mean a return to frugality, at least a temporary return. Buyers of new cars are saying, "You know what, if the automaker wants to charge me $1200 to $1500 for the GPS option, I’ll use a map."
I know that is what I decided to do when I bought a Subaru recently.
The second signal is also about something I did -- sorry to be personal -- but I did check it out with friends who appear to be doing the same thing.
After receiving an AT&T phone bill that included almost $25 for 411 information calls, upon closer inspection of the bill I saw that AT&T is charging something like $1.50 per call to 411 info.
Right then and there I dusted off the Yellow Pages. And if I can’t find it there, I go online.
Once the crisis passes, ...
Is America changing permanently? I doubt it.
Small cars made their debut in the 1970s after the first oil crunch only to see big gas guzzlers reappear as soon as the pipelines opened up again.
Will we ever get as frugal as a Swedish friend of mine says his countrymen are? He tells me that the Swedes put out sand on driveways and sidewalks -- not salt -- and at the end of the winter sweep it up and save it for next winter’s use.
That’s frugality.
Posted by Ephraim Schwartz on March 25, 2008 10:38 AM
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Ephraim -
"High-tech buying" has definitely changed. You mention the Yellow Pages. What a dinosaur! Can't see anyone buying anything high-tech, even in a declining economy that are using antiquated photo book searches.
One of the best sites that rip into the yellow pages is http://www.blog.yellowdinosaur.net and they have YouTube postings of what people are now doing with those eco-unfriendly relics.
Additionally, the also antiquated (area Code) 555-1212 number still works, and it's still free. I rarely use 411; usually when I'm in a strange city and need to contact the place NOW (like finding a hotel while driving to it at 11PM)
Posted by: Paul Sherman at March 26, 2008 10:39 AMI depend on people that are not frugal. If more people are not frugal I become richer because I am frugal. I don't waste and I do not spend on things that I don't need. I enjoy life without any weight anchoring it down. I travel and not worry about money or whether it is a depression or even if I have no job. So to everyone just buy and buy and buy why be frugal.
Posted by: Josh at March 26, 2008 12:47 PMTOP STORIES
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