The Tech Wreck

Technology has, for several months now, been seen as a safe place for your money, even as our economy spins into recession.

And why not? Sales during this last holiday season were very strong for tech products, even as they were fairly weak among other industries. And, as banks and credit companies bleed cash, technology companies sit on big piles of it. Since cash is king during a recession, it makes sense that tech companies would be able to whether the storm.

All that may have changed in the last couple of days. Last night, Apple warned of possible weakness in the next three months. This is a company that set the bar very high with recent holiday sales, so a bit of a slowdown can be expected. Nonetheless, investors bailed out of Apple stock, sending the share price tumbling.

Then, this morning, Motorola says it's struggling to sell cell phones .. now the entire wireless industry is paying the price.

Is tech actually safe? We here in the Silicon Valley will be watching very closely to see if we're part of the problem, or a potential solution.