Innovate or Die

Written by GSCR Staff   
Thursday, 24 May 2012 10:26

It really should not be that shocking to investors that some of the technology leaders are getting long in the tooth. Dell’s (NASDAQ – DELL) numbers were a disaster. HP (NYSE – HWP) has been a problem on/off for years.  When your big profit maker is ink for printers you know you are in trouble. 

Nokia (NYSE – NOK) is a perfect example of a company that has seen its best days behind it.
If you want to know why these companies are in trouble go to Starbucks (NASDAQ – SBUX). You don’t see as many people with laptops working in there these days.  They are using iPads, or reading via ereaders, or some other smaller form factor devices.  Some patrons are on their iPhones or Samsung mobile phones. Perhaps someone ordering in line is listening to an iPod.
See the pattern? Dell, HP, and NOK are dinosaurs.  They are big organizations that have not innovated anything in years. Innovation is not just the key to success it is the key to survival.
The Wii and the xBox are in similar boats.  Mobile is moving and if you want to invest in a technology stock, you better have some exposure here.  If you are interested in these big companies, I hate to say it but why buy anything other than Apple (NASDAQ – AAPL?)  In general avoid the big, go with the small, and be as nimble in your stock trading as the companies are with new products and features.

 

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