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Consumers Buy Less Tech Stuff, Keep It Longer
Hugh Pickens writes writes "The NY Times reports that there are indications that a sea change is taking place in consumer behavior as a result of the great recession: Americans are buying less tech stuff and making it last longer (reg. may be required). Although in many cases the difference is mere months, economists and consumers say the approach may outlast a full recovery and the return of easy credit, because of the strong impression the downturn has made on consumers. For example Patti Hauseman stuck with her five-year-old Apple computer until it started making odd whirring noises and occasionally malfunctioning before she bought a new computer for Christmas — actually, a refurbished one. 'A week later, the old one died. We timed it pretty well,' says Hauseman, adding that it was not so much that she could not afford new things, but that the last few years of economic turmoil had left her feeling that she could be stealing from her future by throwing away goods that still had value. Consumers are holding onto new cars for a record 63.9 months, up 4.5 months from a year ago and 14 percent since the end of 2008, according one research firm. Industry analysts also report that people on average are waiting 18 months to upgrade their cellphones, up from every 16 months just a few years ago. 'We're not going back to a time of our grandmothers' tales of what they kept and how they used things so carefully,' says Nancy F. Koehn, a professor at the Harvard Business School and a historian of consumer behavior. 'But we'll see a consistent inching or trudging towards that.'"
It is, and was always, a case of research. Making up numbers for argument's sake, only 2% of products in a certain category are worthwhile. Usually they're no more (or not much more) expensive than the rest. But you have to sift through the other 98% of garbage (or relative garbage) to find them. Pricing cannot be counted on as a guide because marketing people are wise to the fact that people perceive a link between higher price and better quality, although this is not always the case. So most of the time you are "just paying for the label", as the saying goes.
Seven puppies were harmed during the making of this post.
I think that, at least for the average user in their day-to-day tasks, five or six year old computers still perform adequately, and people really have no reason to upgrade. My uncle has an eight year old IBM ThinkPad which he still uses as his primary computer, and it runs Windows XP, Outlook Express and Office 2003 just fine - and that's all he needs. Given, it's more or less approaching the end of its life, the battery doesn't hold a charge and the HDD is as slow as a dog, but having seen his friends' bad experiences with new hardware and the bloated mess that was Vista, he's reluctant to upgrade.
And that bloat I think is causing a lot of this. New hardware isn't much faster than the old if it's dragged down by a bloated OS. And I think it's fair to say that most of these new 'features' aren't really necessary at all, so people don't see a need to upgrade. Why do you think XP still has such a large market share? Because people already have it, it does what they need it to, and there's no real need for them to upgrade.
"For example Patti Hauseman stuck with her five-year-old Apple computer until it started making odd whirring noises and occasionally malfunctioning before she bought a new computer for Christmas"
Yep. I have a five year-old Mac Mini which I upgraded the CPU in (1.5 CoreSolo->2Ghz Core2Duo), a three-year old MacBook Pro, my wife has a five year-old MacBook (the original one). They are all doing fine for the moment, though ominously it looks like Lion is 64-bit only and so the original 32-bit MacBook will have to go.
This isn't a Mac-only thing either. I'm sure someone would be able to point me at their five year-old PC laptop and say pretty much the same thing - basically unless you're doing really demanding tasks or gaming, anything from the last five years is fine.
I have two applications where I wish I had slightly more modern hardware - Logic 9 (music production) stutters at times when I use a lot of audio effect plug-ins, and I wouldn't mind more than 4Gb so that I could run virtual machines a bit more smoothly. That's it - my day-to-day existence is more than catered for with this hardware, indeed it's pretty much overkill.
Cheers,
Ian