The larger problem is probably that many technology companies have never seen anything like this before. Yesterday's Purchasing Managers' report gave some indication of this. Of 20 industries surveyed, only six showed rising inventories. Three of those could be described as technology-related. It's an indication that tech companies may have been slow to cut production even as demand slowed.
More mature industries have an advantage here, because they've dealt with slowdowns many times.
Automobile companies have teams of economists and very good historic modeling. As a result, auto companies cut production and lowered expectations to a point where they could meet them even if the economy continued to deteriorate at December's pace. In contrast, it appears that many technology companies are trying to navigate their way through this slowdown without a map. Read our conflicts and disclosure policy . Order reprints of TSC articles.