Tech Giants like Microsoft, Cisco, & Amazon are earning record profits, profiting greatly during Covid Logistics’ Commodity Bond Premiums. Some say this is due to heavy competition in the high-end IT Industry and the fact that these Tech Giants is investing billions of dollars into research, infrastructure and R&D to stay ahead of the competition. Some others argue that because the pricing for these products is so low, it’s an incentive for suppliers to pass on the savings to customers. Still others point out that these tech giants are buying their way into the industry’s core – by establishing physical locations, not via the Internet. Tech Giants has the power to set the pricing and they do so via their massive supply chain.
Tech Giants is enjoying the fruits of their labor in the “ICO” or Private Label Rights market. Here, third-party suppliers provide software applications that are loaded into the client’s systems and can be freely altered or replaced by the client, who often has rights to use, sell, and copy the software components. These software applications are then sold to other customers who have paid the associated fees. Tech Giants like Microsoft have made their fortunes through this market.
On the contrary, some believe that the economic recession in China has harmed the Chinese market. Global economic uncertainty has caused a series of negative feedback loops within the economy, and it continues to affect all industries including the IT Industry. In fact, some economists point to the slowdown in Chinese growth as one of the reasons why the bubble burst. The bubble burst of the bubble, in other words, was the bursting of a confidence bubble, or an inflated asset bubble. As such many companies like Microsoft, IBM, Cisco, Microsoft stock, etc.
It seems as though the Asian markets are in a deep freeze, and there’s no sign of an uptrend in the near future. That’s why many investors are dumping their stocks and turning to alternative investments like Forex Options. A large number of Asian countries are experiencing varying degrees of economic problems, ranging from corruption to deflation. The large supply of cheap labor has also been a key driver behind the Asian economic crisis.
With China’s economy in a tailspin, the only option for Asian companies is to look for new markets. The U.S. and European markets offer plenty of opportunities for companies like Apple, Microsoft, Cisco, and others to make money. As I’ve noted in previous articles, technology companies like Google and Yahoo are in the best position to capitalize on China, due to the enormous number of users accessing the Chinese internet via their search engines. According to estimates, there are over 1 billion people using the internet in China. That huge market provides great opportunities for businesses to grab a piece of the massive Chinese market.
The question that stands is whether tech firms can sustain the kind of growth that they’re enjoying right now, especially considering the slowing economy. Tech Giants like Apple and Cisco has already demonstrated that they can survive in a changing market – one with declining profit margins and declining sales. Will they be able to sustain their current levels of earnings if the economy doesn’t improve? Only time will tell.