What goes up must come down! Or maybe not. Will the Social bubble of exploding technology ever pop? Or is the system to dependent for subsequential withdrawal.
Google Started promoting a $199 dollar tablet today, and it’s right on their home Screen (Good Advertising, i might ad’)
With amazing products becoming more and more affordable, what has to give. Will the quality decrease as manufacturers rush to undercut each other until you start seeing long contracts to justify pricing? With out a crystal ball, you just never know.
History can be a good teacher, and we can learn a lot from what happened to the Dot-Coms a decade ago.
Fueled by Über successes like eBay, Amazon, and Google (even though these superstars were bleeding money), investors tripped over themselves to get a piece of the next multi-billion dollar tech giant. This exuberance caused some venture capitalists to sink billions of dollars into tech offerings without due diligence — mainly on faith with fairly shaky financial projections.
“Looking at the similarities between the Dot-Com bubble and the Tech Bubble we see some dramatic concerns that the tech bubble burst is at hand. It might be 6 months or several years before the tech bubble will burst, but I think it inevitable.”
The introduction of new apps introduced into an already saturated market is a serious concern. According to Quora nearly 600 apps for iOS alone become available everyday. Include Android, HTML5 and Social Networks and it’s mind-blowing.
All these new apps must monetize, and in doing so, need eyes on the prize. People need to know your app exists, see the application and decide to engage.
Investors are attracted by the up-side potential of the next FB or Pinterest. The most alarming is investors are not looking at traditional metrics when investing in Tech, for fear of missing out on an enormous payout.
Approach of the savvy investor.
Ask yourself, “what consumer or business problem does this technology solve?”
Can and does this business model scale, will it monetize immediately and can it stand the test of time; will people continue to use it, does it have a stickiness to it.