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HOME >> ZEICHICK'S TAKE

Zeichick’s Take: Computers are cars

By Alan Zeichick

July 29, 2009 — (Page 1 of 2)
How often do you buy a car? Some drivers turn in their cars every couple of years and get a new model. Others drive them until the wheels come off. Others split the difference, trading in every five or six years.

Generally speaking, people change cars because of something wrong with the car that they have, or because their requirements have changed, or because they just want a different one.

Something’s wrong with your car: You have an accident, so you’re in the market. Or your car needs major repairs that seem too expensive, given the value of the car. Perhaps you have reasons to stop trusting its reliability and don’t want to be stranded.

Your requirements have changed: You have a new baby, and so a two-seater won’t work. A new hobby means getting a sports-utility vehicle. A new job’s commute calls out for something with better fuel efficiency. A teen driver means adding a vehicle.

You just want one: A bonus lets you buy the sports car you’ve always wanted. You want to make a statement by driving a hybrid, or by getting a Lexus or BMW. Your brother-in-law got a new truck, and so you want one too.

What about computers? People used to replace their computers because the new computer had essential features that the older computers didn’t have. It was faster enough to let you do more tasks. It had better connectivity. It supported more storage options.

The problem is that today’s computer hardware and software is so darned good that the regular upgrade cycle has collapsed.

Look at Microsoft’s terrible financial results, reported on July 23. The company announced that its revenue declined 17% from the same quarter of the previous year. You might say that’s because Microsoft is having its butt kicked by companies like Google and Apple. That’s part of the situation, sure. But that’s not why Microsoft, and many other companies, are in such a funk.

Consumers and businesses used to buy lots of new “stuff” every year or two or three. New computers, going from a 286 to a 386 to a Pentium. New modems, from 1200 bps to 9600 bps to 19,200 bps. New printers. New flat-screen monitors. New scanners. New operating systems. New productivity suites. The changes in hardware, in operating systems and in major applications were so significant that the upgrade was perceived to be a good value.

Related Search Term(s): Microsoft

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