The whole hardware industry has experienced the phenomenon in which every time computers get cheaper, they appeal to a new set of users; every time they get more powerful, old customers upgrade.

The quote by Nathan Myhrvold, "The whole hardware industry has experienced the phenomenon in which every time computers get cheaper, they appeal to a new set of users; every time they get more powerful, old customers upgrade," reflects on the cyclical nature of the technology market, particularly the hardware sector. Myhrvold is pointing out that as computers become more affordable, they open up opportunities for a broader range of users—those who might not have been able to afford them previously. Similarly, as computers become more powerful, existing customers are motivated to upgrade their devices to access the latest features and capabilities.

Myhrvold’s observation highlights the dual effect of price reduction and performance enhancement in the technology market. Lowering prices attracts new consumers, making technology accessible to people who previously couldn’t afford it, while technological improvements keep current customers engaged, driving upgrades and continued sales. This cycle is a key factor in the growth of the hardware industry, as it ensures a constant influx of both new users and repeat customers.

The origin of this quote comes from Nathan Myhrvold, a technology executive and entrepreneur who has been involved in various fields, including computing, innovation, and entrepreneurship. Myhrvold’s background, including his work at Microsoft and his involvement in the development of cutting-edge technologies, provides him with a deep understanding of how the hardware market operates. His insight into the dynamics of the tech industry reflects his experience in both business strategy and technological development.

Myhrvold’s statement illustrates how the hardware industry thrives on both price competition and technological innovation, making it a continuously evolving market. It emphasizes that the accessibility and enhancement of computers drive both new adoption and ongoing demand, ensuring that the industry remains robust and dynamic. This concept is fundamental to understanding the rapid pace of innovation in technology and its broad appeal across different demographics.