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Can Tech Gadgets Turn the Economy Around?

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    Former Microsoft COO Bob Herbold on the latest technological gadgets and their sales’ impact on the economy.

  • Duration 6:09
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Spore take two tablets and let's start warring because it's now tablet warfare my friends -- new -- admitting that new Microsoft surface both going on sale today.

Both hoping to bring in big bucks today.

But -- warning that holiday profits this season might not be so cheerful former much.

Hello Bob -- balls are whether gadgets are enough.

Turn this thing around always good have you Robert what do you make of that that step.

When even companies like apple urged caution you know that there are notoriously conservative company when it comes to handling -- to minutes and quarterly earnings statements and the like.

But date -- -- -- -- amount of time talking about these headwinds they must see something Moody's.

Well I think the the iPhone 5 has been out for awhile.

The mini is interest in product but I don't think it's.

Blockbuster.

On the other hand you've got.

The windows eight products.

And particular the tablet.

The PC running windows eight and you got a lot of -- technology enthusiasts that are itching to get their hands on these things you got Samsung what the hottest product out there which is the galaxy.

S three.

You got folks over to Amazon do an exciting things so does a great time I can I.

Look pretty optimistic -- can't make money on it right I mean and at and is it just -- going to be.

For the technology zero or we -- paying too much and we in the media I put -- cells.

Are -- -- -- -- is no way they can do it there's this economic Paul business that fiscal cliff.

People aren't going to be nearly as confident and and robust about buying this stuff.

And then these tech guys that prove us wrong.

Well you don't know me off we can sit here and and -- what those futures are -- so one thing we do know for certain is.

You could hardly find a more exciting time.

Relative to these technology tools so.

That's nothing but good -- I mean you take your typical window users Yahoo! -- focus more on business than they are.

Social networking.

Now they can use those spreadsheets and those -- documents are basically on their tablets as well as their PC.

With the Smartphones coming along running windows eight operating system -- hey that's exciting.

Yeah and and just because you are a former Microsoft guy that has nothing to do with the -- you just made.

But.

I'm not a young kids but you know -- little irony is that I think and I said this yesterday about a lot Google I was crazy.

The reason why I think there's going to be more bang for the Microsoft -- and people are appreciating is that.

Much like people have been sitting on old cars because it's been costs.

Cost -- -- -- to switch out they now almost have to so the average -- on the -- I guess his age and years old some -- some.

Have to make -- -- And I think the same can be said of people who -- old operating systems on their computers and a lot of these windows incarnations have been sort of -- Copies of -- one prior so there's been no reason to switch but now there is a compelling reason to switch in almost a need.

Seriously -- so.

Obsolescence has given way to at least a bit more necessity.

We -- to change and that that.

Might be something we've not factored in that could favor more -- just as we've seen in the auto arena we could see in the technology arena -- you.

I agree totally.

But -- you should run the other way because I literally I literally -- that I don't know but -- I do think that now the question is how much we're gonna see of that.

That's exactly right -- And I think that somewhat depends on.

Topics that you've been talking earlier in this program which is that.

If the US government in Washington DC continues to fumble around.

And makes this a serious economic threats.

As we go into the so called fiscal cliff and scares people to death.

That will be a wet blanket on what's going on not just with technology but in general so.

There's huge risks out there in the you know on the other hand the technology is very exciting.

You know I took a look at all the premier technology names of our day euros on Microsoft and apple Dell.

Are some of the big premier names they all started.

Absolutely awful economic environments I mean.

-- Microsoft in the mid seventies you couldn't ask for more horrific environment the lost a company up and the same could be so said -- -- of apple and yet they grew and -- To the -- the giants they are varying degrees today.

So.

What do you think is going on under the surface that guys like me in the media are missing.

That you know as were approved -- the general economy and technology what -- we miss.

Well you know my many decades of working with Procter & Gamble prior to Microsoft Doug give me I think a very clear answer to what you just -- on the table.

Namely if you put a product in front of someone that's truly exciting that there's clear benefits it's easy to use they know how to use it.

Let me tell you do create excitement that's what the free enterprise systems all about here in America.

And the best products win and right now we got some exciting ones on that table.

So it guys like you and and and other you know visionaries and I would throw -- certainly and that and that camp.

You don't necessarily.

Overly focus on things like a fiscal cliff or Europe -- and Allen and that's you're aware of that.

But but if you're confident of products are offering you just sort of -- go through that.

Absolutely.

The product is what's key you gotta create things that are useful.

Exciting clearly fit in someone's life.

Can make it easier could make it more fun.

If you can.

Score on those dimensions are you have a winner no matter what's going on around you.

All right well what our bottom you know you've been.

Kind enough to -- the sales stick around with us we always love having you.