Investing in the Technology Sector
A friend has advised me to diversify into several different ETFs that focus on different sectors. People still like technology, most which, I suppose, largely means is better and cooler communications gadgets. There is no doubt Microsoft, Google and Apple have kept this arena afloat for many years.
But how long will this continue? Is there anything that an IPhone 9 could do for us that people will find exciting? Won’t the “marginal utility” of technology eventually exceed the “marginal cost” to the consumer? (That happened to me years ago, though I may be rare.)
Here’s a good example: displaying your mobile apps on your skin. As you check out the video, you’ll realize that this is no lie. Many of their ads show people online–in the bathtub. Doesn’t sound like a huge advantage over toweling off and using my phone a few minutes later.
Needless to say, I love the cleantech side of this sector. It’s technology with a purpose.
I think the coolness factor will lead to adoption on this one, when it’s released. 🙂
You’re probably right. But eventually there will come a day when people say, “Ya know? We just don’t need this, and it’s actually more annoying than cool.” I just saw the the IPhone 6. You can’t put it in your pocket?! Who on Earth wants something that defeats the purpose of a cell phone in the first place? I’m reminded of this shot from the film classic “Wall Street.” http://bit.ly/1ssBzMR You almost feel sorry for the guy.
Perhaps, but this also presents conveniences – it remains to be seen.
As I say, you’re probably right.
And come to think of it, no one makes huge mistakes anymore on misjudging the market for a tech product–especially when it comes of Apple, Google, etc.
I’m trying to think of the last major meltdown in tech. I can’t. In soft drinks we had “New Coke.” Young people won’t even remember that….
Of course, there are companies that didn’t make it: Commodore, DEC, Compaq, Data General, Silicon Graphics, Tandem, a million disk drive manufacturers, etc. But most of them made a ton of money before they went under.
Most of the technology simply became obsolete, e.g. fault-tolerant computing and minicomputers.
There have been a few – Microsoft Vista comes to mind.
Yes, that was an atrocious product. I was referring to products that actually worked but that were regarded as dogs by the market, e.g., the Edsel.
Ah, fewer of those, perhaps – Betamax for one. Market forces are not always function driven.