Although the situation in 1998 shares similarities with the current economic situation, 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 week, has more than doubled in size since 1998. There is no reason to hope for a 'V' shaped recovery. Inc. All rights reserved.