Can someone please tell me how the Real GDP affects the DELL corporation and the computer and technology industry as a whole? Thank you.
2006-10-07 02:59:19 · 2 answers · asked by Kira H 1 in Social Science ➔ Economics
Technology industry is pro-cyclical, that is when the economy is strong, tech indus is very very strong. Look at how well tech stocks did in 1999.
Sales of computers etc are dependent primarily on buisness investment, and investment lags growth in GDP by about a year. Sales to consumers will move with personal incomes. Daddy buys a laptop for his daughter because she needs one for school and fun, but he buys an upgrade when he can afford one, right?
It used in 20th century to be that business bought new software whenever Microsoft (before them, IBM) came out with new Windows, but after the 2001-2 tech bust, corps in general have realized that they need to do their sums to try and see if it's worth it before buying, just as they have always donw with any other business investment.
2006-10-10 20:04:52 · answer #1 · answered by MBK 7 · 0⤊ 0⤋
Ummmm this question doesn't really make sense. Real GDP is just the total amount of money that is made in the US. So a bigger economy would mean more dollars floating around the US for companies (including Dell or the IT sector) to acquire.
2006-10-07 06:38:22 · answer #2 · answered by Eddie B 2 · 0⤊ 0⤋