The technology field is vast but also very diverse. Technology-based companies can be anyone specializing in the sales side of technology for digital goods and services, like your everyday products like mobile phones, computers, and e-reader tablets, or it can be the behind-the-scenes applications specializing in the internal hardware and management systems.
You could probably guess that some of the top dogs in the technology sector are companies such as Amazon, Google, Microsoft, Facebook, and Samsung, among many others you may not even think of as technology giants like Salesforce, Intel, or Cisco.
Within the Technology Sector
There are several specialties within the technology sector to differentiate the biggest companies within the field. Software applications, consumer electronics, semiconductors, software infrastructure, computer hardware, and communication equipment are some of the top specialties of technology companies.
Let’s break these down a bit more.
Platforms like Salesforce, Jobber, and Blue Folder are the backbone of many corporations and agencies. Software application companies are a pivotal part of businesses. If the application a malfunction, the business cannot operate smoothly.
Salesforce specializes in something called customer relationship management, also known as CRM. Having a close customer-to-company relationship means not only more transparency but increases brand loyalty.
Jobber is also a CRM application, while Blue Folder is an FSM, short for field service management. You can probably guess that a key difference between CRM and FSM applications would be the keywords “customer” and “field.”
CRMs have a closer relationship between a company and a customer. FSMs have a relationship between a company, its employees, and its services.
Every time you go to the Apple Store for the latest iPhone or buy a new laptop from Microsoft, you’re employing a consumer electronics resource, a big market in the technology field.
Among many others, Apple, LG, Samsung, Microsoft, and Amazon are some of the towering consumer electronic names. Apple has been a top dog since 2007, when they introduced the iPhone and changed the way consumer electronics were enjoyed by the public.
They paved the way for the one-button interface and were a trailblazer for full-screen touch-screen electronics.
Samsung soars in sales from TVs, smart wearables like watches, and GPS systems. LG is a mass producer of appliances and home entertainment, while Microsoft will go down in history for the Xbox. The list goes on and on for game-changing consumer electronic companies.
Arguably the biggest and most profitable technology company in the world, millions of Americans shop on Amazon every single day. For some, it’s a convenience of having anything and everything at your door within just a few days. For others, it’s the ability to buy a new wardrobe, school supplies, books, and household items in the same place.
Amazon differs from the rest of the tech giants by being a customer-first company, putting its customers at the forefront of its operation rather than the technology.
Although its customers are what make it a continued success, it’s not the products that make Amazon the top dog in the technology sector, their innovative systems are. You can’t have a successful company without successful systems running the site.
One of the most critical functions of Amazon is that it’s user-friendly. You can go onto the site, type in a keyword and instantly find items that can be on your doorstep in a few days. Amazon offers its own line of electronic products like the Kindle, which has taken over the lives of readers everywhere with its ease of access and convenience to multiple books in the palm of your hand.
Another big-name product is the home automation Alexa product that truly controls consumers’ homes and has stayed popular due to, once again, user-friendliness, accessibility, and convenience.
Technology companies that specialize in semiconductors are found in most technology equipment, whether it be for entertainment, medical, or informational systems.
Every mobile phone, computer, X-ray machine, and PlayStation has a semiconductor. They are made to be small silicone devices that conduct electricity through the device. Frequently referred to as chips, semiconductors have four primary uses; memory, microprocessors, commodity integrator circuit, and complex SOC (system on a chip).
Unsurprisingly, companies like Intel, Micron, and NVIDIA are successful semiconductor producers.
Infrastructure software is a management tool that helps with hosted applications. So this means the infrastructure is the backbone of an operating system, ensuring all components run smoothly for the business.
The components of any given application’s infrastructure may vary. Still, for the most part, many have at least these bones – web server, firewall, application server, intrusion detection system, and file storage.
Companies like Microsoft, Oracle, Adobe, and IBM are powerhouses of the infrastructure world. They produce critical components for each platform they assist.
Computer hardware goes much further than basic external hardware such as monitors, keyboards, and the like. Hardware companies produce internal hardware critical for performance in technological devices such as RAM, motherboards, SDD, ODD, card readers, and the list goes on. Apple, Dell, and HP are key producers in the technology sector of both internal and external hardware.
What does the stock market have to do with technology companies? More than you might guess. The rise and fall of the stock market show how much a company’s shares are selling for. Because of how rapidly technology changes, the stock market is super important. This is true not only for consumers but for the companies themselves to use as a guide. At any given time, you can see how valuable a company is from one day to the next.
Companies like Apple (AAPL), Alphabet (GOOG), and Meta Platforms (META) are all high-profile technology stocks that move on the market daily. Costs of shares can raise to hundreds of dollars, making it hard to be a longtime shareholder for some companies.
Others are much more affordable, but the shares themselves can feel smaller and less significant. This is why it is quite common to purchase and sell multiple shares at a time to see a profit.
Now that you have a better understanding of what the technology field and industry can be and just how broad it is, you can take a deep dive into the technology sector, as well as its place in the stock market. You can see where growth is being fostered and how you will be able to benefit from that growth.
Featured Image Credit: Pexels; Thank you!