The Economics of Tech Businesses

Everyone seems to be talking about the economy.  Politicians, school teachers, and even that guy holding up the sign at the street corner are all asking if we are better than we were four years ago.  At the core of that question is faith and belief.  Publilius Syrus once said that, “Everything is worth what its purchaser will pay for it.”  Recently, the Nasdaq reached its highest levels since 2000, when the Internet bubble burst.

Many fault the slow economic recovery to low demand.  However, major tech companies are still chugging money into R&D.  Both Google and Apple are preparing for major product launches.  A Piper Jaffray report stated that Apple may be able to sell 10 million iPhone 5s in a week.

Not only is demand for hardware on the rise, but also for the consumption of data.  A Motorola executive, Daniel Woodward announced that there are 15 million users and counting on LTE services when talking about the new Droid Razor coming out.