The cost of crude oil reached $130 this morning driving the inflation further upwards. As our economy may have gone into recession, most of the domestic retailers are feeling the pinch. The mobile and technology sector, however, seems to be resisting such trend. HP reported strong demand of their laptops and global demand yesterday. Apple and RIMM stocks are still floating around its highs ($186 and $138 respectively).
One of the reasons why technology sector (especially mobile) is immune to the the oil price may be the fact that consumers have developed a stronger dependency on mobile technology. Therefore, making the tech leaders price inelastic to inflation. For example, if my laptop is aging and I need an upgrade, I am going to buy a new laptop without any hesitation. As this would help me maintain or improve productivity with all of its new offerings (support more powerful applications, VOIP/Webcam for communications, built-in Mobile Brandband chip, etc.). Same can be said for smartphones like BlackBerry where so many American business men/women have depended on.
Some have argued that our nation's lust for techno gadgets is a product of marketing blitz. While that may be partially true, I have to argue that the modern gadgets are offering more productivity, efficiency and organization than ever before. This resistance oil price, inflation and recession is a testament of Americans and their urge to pursue the perfect mobile experience.