I recently went in search of a new desktop computer, and there are lessons that investors need to be aware of from this experience. I don’t consider myself to be an unusual customer, and if my experience is being replicated across the country, I’ve got some good news for a few companies, and some bad news for others.
I Have This Problem
Some people say I have a problem with technology. The issue is, I don’t ever seem to be satisfied with what I have. I don’t think it’s a problem, I think of it more like I’m constantly searching for a better solution. If you ask my friends…well…just don’t ask them what they think.
I was a PC user for about 10 years and never wanted a Mac. However, when Apple Inc. (NASDAQ:AAPL) came out with the first iPod, I was intrigued. I bought an iPod, and found very quickly that Apple designed their devices to work better with a Mac. Not long after, I bought a Macbook, and was so satisfied, that for the next 10 years I basically ignored the PC universe. At work I was forced to use Microsoft Corporation (NASDAQ:MSFT) Windows, but for all other interactions, I was on a Mac.
For the last several months, I used a Macbook Air connected to an external monitor. I liked this set up, but ever since Windows 8 came out, I’ve been curious about the product. I guess it’s my contrary nature, but I tend to disbelieve much of what is reported about new technology.
What I really liked was the idea that Windows 8 was built to work on a desktop, laptop, tablet, or smartphone. As much as I love Apple Inc. (NASDAQ:AAPL) products, the company has kept iOS and Mac OSX apart. I read up on Windows 8, went to Best Buy Co., Inc. (NYSE:BBY) several times to play around with the desktop and laptops, and looked at some models online.
So What Happened?
The first investing lesson is, Windows 8 isn’t as bad as has been reported. Ironically, the best sales tactic for Windows 8 machines, was employed by Office Depot Inc (NYSE:ODP). Since Office Depot and Best Buy are in the same strip mall, I looked at each for my new computer. What was really ironic is, as much as Best Buy Co., Inc. (NYSE:BBY) touts the knowledge of their associates, Office Depot Inc (NYSE:ODP)’s smartest associate was a piece of paper.
Next to each laptop in the store, was a piece of paper with pictures explaining some of the common actions on a Windows 8 machine. With this piece of paper in hand, I learned more about Windows 8 in ten seconds, then I would have asking an associate at another store. While Office Depot Inc (NYSE:ODP)’s use of a simple piece of paper was a stroke of genius, it’s a good thing, because the company’s sales associates were a different story.
This brings us to investing lesson number two. If you are going to buy stock in a retailer, check out the store to see how smart and friendly their employees are. I asked an Office Depot Inc (NYSE:ODP) associate a few questions, and not only did he act annoyed to be asked, but I found out later, that most of his answers were wrong.
Ironically, when I was at Best Buy Co., Inc. (NYSE:BBY), I actually heard an associate say, “Oh I don’t know, we pretty much just get the specs on the computer, if it’s not on the sheet we don’t really know.” Let’s just say this wasn’t a banner day for customer service at either company. It’s not a surprise that analysts expect both companies to have challenges growing their sales over the next few years.
For this reason and more, I ended up buying my desktop from Woot. I checked Amazon.com, Inc. (NASDAQ:AMZN), eBay Inc (NASDAQ:EBAY), Target Corporation (NYSE:TGT), and Wal-Mart Stores, Inc. (NYSE:WMT), and Woot was the best option. Or Should I say, Amazon.com, Inc. (NASDAQ:AMZN) was the best option, more on that in a second.
What Else Can Investors Take Away?
Another investing lesson is, Hewlett-Packard Company (NYSE:HPQ) still offers very competitive PCs. Whether I was on Amazon.com, Inc. (NASDAQ:AMZN), in Best Buy Co., Inc. (NYSE:BBY), or looking elsewhere, Hewlett-Packard had computers with specs and prices that were hard to match. In the end I bought an Hewlett-Packard Company (NYSE:HPQ) product, and given that I’ve owned Apple Inc. (NASDAQ:AAPL) products exclusively for the last ten years, that’s saying something.
In fact, I would suggest that Hewlett-Packard Company (NYSE:HPQ) should be sending candy and a card to Microsoft Corporation (NASDAQ:MSFT) because if nothing else, Windows 8 is causing salespeople to talk to customers more than ever. With Windows 7 or XP, customers generally knew where everything was. With Windows 8, customers are asking a lot more questions.
Windows 8 has some features built-in that Apple can’t match, like live tiles. Apple Inc. (NASDAQ:AAPL)’s Mountain Lion OS is great, but you essentially get a blank screen with some icons at the bottom. The user has to do the work to keep up with what’s going on. Windows 8’s live tiles update, e-mail, calendar, social networks, finance, and more. At first it’s a little overwhelming, but you come to appreciate the flow of information.
In the end, the main reason I chose to go with Woot (aka Amazon – check the very bottom of Amazon.com, Inc. (NASDAQ:AMZN)’s home page if you don’t believe me), was price. I was able to get an HP desktop (my preference) with specs I couldn’t get elsewhere, at a price that no one could match. The takeaway for Apple Inc. (NASDAQ:AAPL) stockholders (myself included) is, Apple’s products are expensive enough that sometimes a mainstream customer doesn’t want to spend that much money. When given the choice between a $500 desktop with top of the line specs. Or a $1,200 iMac, the $500 desktop is going to win a lot of the time.
In summary, physical retailers need to make sure their service is up to par. If their associates aren’t friendly or knowledgeable, they will lose sales. Surprisingly, Microsoft Corporation (NASDAQ:MSFT)’s Windows 8 may move some customers away from Apple Inc. (NASDAQ:AAPL). Ifit happened with me, a 10 year Apple fan, I’m assuming it could happen with others. While Amazon.com, Inc. (NASDAQ:AMZN) didn’t get my business directly, through one of their subsidiaries, they ultimately won the day.
The article My Computer Buying Experience And The Investment Implications originally appeared on Fool.com is written by Chad Henage.
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