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Technology
by tj on October 25, 2003
Michael Kanellos has written one of these great articles about failed tech predictions.
"The PC will disappear.
This is the Area 51 theory of the hardware world--it never goes away. IBM was supposed to get out of PCs. Then HP. Internet Appliances were supposed to kill them, and soon game consoles and set-top boxes will. Around 161 million will get shipped this year. "
"Services--that's where the money is at.
Everyone is getting into services. But although the market is growing, there is a major problem with services: It's not as profitable as everything else. In the most recent quarter, IBM reported a gross margin of 25.1 percent. That's lower than the margin in hardware, 25.2 percent; software, 85.2 percent; financing, 57.7 percent; and other, 53.4 percent. "
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