Friday, January 23, 2009

Apple in Good Health Despite the Economy

We've almost got used to turning on the TV or reading the headlines to hear the latest doom and gloom. While Intel is to layoff 6000 employees worldwide and Microsoft 5000, you'd think the entire tech industry is coming to an end. Sure, the economic downturn has had an effect on PC and consumer demand, but you have to dig deeper to see what is going on with some of these ailing companies. If it were all about the economic downturn, then why is Apple immune to this recession? Perhaps because they remain innovative and competitive and in touch with the consumer. Firstly, Microsoft's Vista has been a dismal failure in itself and that in turn has probably affected the lack of demand for new PC's in order to run Vista. Note the recent announcement of Windows 7 which apparently won't require such a massive hardware upgrade, (we'll believe it when we see it) and the fact that Microsoft is abandoning Vista. In the meantime, the Apple Mac environment is still years ahead technologically speaking and the Company continues to deliver products that consumers actually find exciting and usable. Sales of iPods, iMacs and iPhones remain healthy.

Apple sold nearly 23 million iPod digital music players, up 3 percent over the year-ago quarter, and 4.3 million iPhones. Apple also sold 2.5 million Macs during the quarter (ending Dec. 08), representing 9 percent growth over the year-ago period. The company had $7.2 billion in cash at the end of the quarter.

Staying ahead of the competition is obviously a strategy that helps in a recession. For those companies who were or are complacent, such economic times only serves to accentuate their already existing problems. Innovation in technology continues and we'll likely see more success stories as the year progresses. Watch out for the new and much awaited Palm Pre with new operating system and Google's Android is still in its early days.

Perhaps if the general media gave more time to good news, we might actually get out of this recession sooner!

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