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The severity of United's revenue problems stems partly from its heavy reliance on the bubble spending of technology companies, as well as its unusual exposure to Southwest's low-fare service.
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David Yoffie, a Harvard Business School professor, told the Wall Street Journal that Microsoft has suffered in comparison with Apple because the consumer market, Apple's focus, has outpaced the growth of spending on technology by businesses, Microsoft's traditional area of strength.
We have been through a down period of spending on technology since early 2000.
Cisco's bleak assessment of corporate spending on technology could prove especially worrisome for investors.
However, it said it remained cautious because of uncertain spending on technology, a relatively weak consumer market and aggressive competition.
In the intervening years, smartphones and tablets have become much more serious rivals for a share of consumer spending on technology.
That was back when the Internet bubble burst, ending a period of unrestrained spending on technology products as Internet start-ups and old school companies alike rushed to establish a Web presence.
[Page C13.] Computer Associates to Cut Jobs Computer Associates International, the software giant, said that it would lay off 900 employees, or 5percentt of its work force, in the face of slowing corporate spending on technology.
See articleCisco Systems reported weaker results than expected because of companies' reduced spending on technology.
Spending on technology was one of the first things that Asian companies cut, and revenue declined.
But despite the best-laid plans and billions of dollars spent on technology and staff, a single whim of nature can toss it all to the wind.
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