muses of the moment

July 24, 2012


Filed under: Odds 'n ends — totallygroovygirlfriday @ 6:47 pm

My thought about new technology is that of  the mortgage business back in 2004. There are only so many people in the US that can get a mortgage. Then, they lent money to dead people. But I still said, there are only so many people (dead or alive) in the US. They all can’t have 5 houses. There is an end to this, it can not go on forever. And it ended.

It is the same with Apple, or Microsoft, or any other techie item. There are only so many people that can afford them, want them, and willing to upgrade every time there is a new series. And at 22% real employment rate (higher for the under 30 crowd), that pool of people keeps getting smaller, not larger.

Click here.

There is also the problem of infrastructure: bandwidth and its increasing costs. There is a limit there, too.

Until one or all of those limits change, Apple has to stall in its financials. That doesn’t mean it is not a good long-term play.

Side musing: Groovygirl is very interested in Goggle’s super-high speed fiber test cities. If gg were in charge of one of these techie companies, like Google, she would be spending every penny on building infrastructure  (and lobbying gov for assistance/loans) and become the AT&T of national bandwidth. Put in the infrastructure, charge the cheapest price, put all other cable and fiber companies out of business, and get income from that infrastructure for the next 50 years.



  1. Oh yes, just like British Telecom who had the landline monopoly and after installing fibre optics into these for broadband were ordered by the UK government to give competitors access to their infrastructure.

    Comment by Guy de Simon — July 25, 2012 @ 1:23 pm

  2. Guy,

    They get to charge their competitors for access, don’t they?


    Comment by totallygroovygirlfriday — July 25, 2012 @ 1:41 pm

  3. Yes but not the market rate thanks to the government.I held BT shares at the time. Bought at around 2.50 pounds and went to around 15 pounds. Then the gov. wanted to open up the market and Deutchebank forecasted 18 pounds a share – that´s always a warning- – and the shares went into reverse and are not much higher today than when I bought them.

    Comment by Guy de Simon — July 25, 2012 @ 1:58 pm

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