Although the situation in 1998 is similar in some ways to the current slowdown, differences exist. Computer penetration was far lower back then. By the middle of 1998, PC sales rebounded and eventually exceeded analyst expectations. Last year, by contrast, the worldwide market grew by 14.5 percent, with U.S. sales slowing to a crawl. Analysts have predicted that the maturing market has hit a plateau, eliminating the type of boomerang-like rebound seen in 1998.
Technology companies are a lot bigger than they used to be.
Dell Computer, which announced layoffs last month, has more than doubled in size since 1998. Consumer market saturation.