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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.'"
The bad news is that the tech industry has to compete more with itself which means its scrambling over a smaller total of dollars available.
I think the industries need a wake-up call, to some extent. I find it remarkable how they expect people to keep buying and buying.
Just because technology gets older does not always make it obsolete, although electronic manufacturers try very hard to make it so.
vos nescitis quicquam, nec cogitatis quia expedit nobis ut unus moriatur homo pro populo et non tota gens pereat.
The bad news is that the tech industry has to compete more with itself which means its scrambling over a smaller total of dollars available.
The good news is that as the installed base of five-year-old PCs and netbooks increases, publishers of commercial software may finally realize that the common practice of increasing published system requirements rather than the efficiency of algorithms, commonly called Wirth's law, is costing them customers.
and keep it for years than have the latest and greatest every year. Sadly, it is getting tougher and tougher to find those quality products,
"To those who are overly cautious, everything is impossible. "
The summary said " Americans are buying less tech stuff and making it last longer"?
No worry, manufacturer are making everything last shorter
When people have less money they keep their items for a longer period. They have functional items and don't have the money and there is less peer pressure to buy the latest since for many the money is tight. They dont waste their money by buying new items they don't need.
This more or less always happen when the economy are bad.
Just saying it like it are.
The environment will be happy.
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.
I don't see this as a return to frugality - I see this as a warning shot for the industry.
Innovation in the electronics and technology industry is stagnating. What really separates a high-def TV, smart phone, or computer from one of 5 years ago?
Consumers seem to think not much.
As much as I love my new Verizon iPhone - it's not really leaps and bounds better than my old 3GS I gave to my wife. My company switched to Verizon, so I was forced to "upgrade". If I was paying for it, I wouldn't have made the switch.
I think TV manufacturers saw this trend coming a couple of years ago, so they scrambled to put 3D in to every TV they could hoping it would spur another round of upgrades - and most of the world said meh...
The low-hanging fruit is gone - the tech world will need to really think creatively to create the next round of stuff that people find useful.
-ted
"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
Welcome to the normal way of living America!
Aside from fashion designers, I can't think of any industry other than tech that is more aware and aggressive when it comes to planned obsolecence.
I'm just a barista, and I don't make a lot of money, but even I manage to buy a new Apple device almost every month.
Each month, I put all of my first three weeks of earnings toward buying a new iPhone or an iPad or an iBook or an iPod. I already have 14 different types of iPods, and 8 iPhones. Next month I think I will save up for a new Mac mini (it will be my 12th).
It's my duty as an American to buy as many Apple products as I can, even if it means that sometimes I don't have enough money for rent, and sometimes not even enough money for food.
Well, it's about time. That whole "consumer" thing is just so much sick shit. I happen to be a citizen, a taxpayer, a voter, and a PRODUCER. Consumption is a goddamned DISEASE! http://en.wikipedia.org/wiki/Tuberculosis
"Windows is like the faint smell of piss in a subway: it's there, and there's nothing you can do about it." - Charlie Br
too ...
(emerge is still running)
I'm not a lawyer, but I play one on the Internet. Blog
"I find it remarkable how they expect people to keep buying and buying."
But that's exactly what people do till they are trillions and trillions and trillions in debt.
Companies owe the banks lots of money, it has to be paid back or the thugs come rounds and break some legs.
You have to keep buying. There must be Growth!
Deleted
when you have cut down the last tree and poisoned the last river... etc...
only then will you realise that you cannot eat money.
When you have knocked down the last skyscraper, and destroyed the last lightbulb ... only then will you realize that shivering in a cold, dark cave, really, rally sucks.