The benefits of a recession. For some.
By: Stephen Roesler
The rhetoric about a floundering economy due to faulty loans has been buzzing in the ears of consumers for a little over two years. It’s getting old. Now the sob stories of lost homes and accruing debt seems to be our focus. The housing market is poor, the loan process stinks and banks are shoddy. Obama, we think, is listening.
While hardship and strife continues among everyday Americans, Apple recently announced it’s financial results for its fiscal 2010 first quarter. $15.68 billion. It’s Apple’s all time highest quarterly revenue ever posted. Last quarter alone Apple sold 3.36 million computers, 8.7 million iPhones and 21 million iPods. And these profits come before the launch of the much anticipated iPad.
During a recession, the gap in success between markets can be substantial. The economy bears a contraction in real output and employment which inevitably suppresses or bolsters different sectors of the economy. Taking a glimpse at the Great Depression it’s relevant to note that recessions produce emerging markets. Unneeded markets naturally select. The elevator for example, gained enormous popularity following the crash in 1929. Another notable example is the personal computer which eradicated the need for typewriters.
Currently, we are experiencing similar fluctuations in valuable sectors. We live in an accelerated time driven by technological trends. Google knows our online history, where we work and the street we live on. Facebook knows who we hang out with and even suggests who we should be friends with. Stumbleupon knows our interests, Digg knows our favorite stories, and Flickr see’s our personal photos. Apple, in all their brilliance, knows what we want before we want it.
Today, the online market dominates. From this recession, consumer technology is expanding quicker than every before. 96% of Gen Y has joined a social network, social media has overtaken porn as the # 1 activity on the web, 1 billion iPod apps were downloaded in 9 months. 80% of companies use LinkedIn as their primary tool to find employees and there are more than 200 million blogs. As we begin to emerge from the recession, we will soon see the true success of the online revolution.
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