Wall Street Beat: Tech mergers cover range of IT

07.10.2011
Steve Jobs' death raised question about directions in technology this week while worries about the economy continue to put downward pressure on tech stocks, but for much of the industry it's been business as usual, especially for mergers and acquisitions.

The big question for the consumer electronics sector is how will affect Apple, and by extension, its competitors in both the computer and home electronics markets.

Many analysts, considering Jobs' vision and tendency to micromanage, think he and his team prepared for his death in part by setting up a plan for Apple's product pipeline for years to come.

"That foundation will serve Apple well in the years to come, and there is little danger of Apple deviating from that successful strategy," according to a research note by Ovum's Jan Dawson.

The real question is what happens when the current plans are carried out and the company has to come up with a new generation of products.

"The risk -- if there is one -- is that Apple continues to rely on single 'hero' devices in its two major product lines -- iPhone and iPad -- with an annual release cycle. If one of those devices ever turns out to be a dud, it will put a huge dent in the company's revenues and margins," Dawson said.