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Saturday, 17-May-2008 03:31:57 CDT

Now?

investmenttool.com technology journal

Is January of 2002 may be the best time to pick up the personal computer you've had your eye on. With the impending end of the recession and the expected increase in corporate demand, the days of incentives and falling prices may be over soon.

When corporate America starts ordering computers again, some time in the next six months, prices may begin to rise along with margins at the manufacturers. The thing that makes January look special is the left over inventory in retail stores from the recent holiday season.

One of two things is going to happen in the technology business. Either demand is going to improve margins, making it possible for someone besides Dell to make money in this business. Either margins are going to improve or certain players will drop out of the market. This will decrease the supply of computers.

A recession is often a good time to pick items you had planned to get anyway. Witness the zero percent financing on automobiles the last quarter of 2001. The same kind of price war has been going on in the computer business. It might be time to think about it.



Last weeks technology journal story.

For our front page, click here.

Shmuel Protter
investmenttool.com



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