What digital products and services will be in demand during a recession?
Question: What digital products and services will be in demand during a recession?
Answer: In a recession, businesses and consumers have less money. So they do without what they don’t need to survive.
Businesses, because they are profit oriented, cut back on spending on everything to preserve profits. Some argue that there are no cuts to spending on cybersecurity. Some also argue there are no cutbacks technological developments because innovation is vital to retain sales. On a relative basis these arguments may be true, but the stock market does not buy it. Stock prices of B2B companies for the most part go down in recessions.
Consumers in a recession do not cut back on food, health care, or keeping the heat and electricity running. And the government rarely cuts back on defense spending during a war. These are some safe-haven revenues that hold up well during a recession. Digital products and services for the most part are expendable. Apple’s iPhone is perhaps the most in-demand digital product, but even so, app up store sales have fallen off a cliff in 2022.
When it is a choice between gadgets and software vs necessities, then eating and keeping the lights on and staying current on health insurance win out.