Technology spending to increase by 5 percent this year, says IDC

Technology trend tracker IDC and investment bank JP Morgan expect a slightly slow growth in the technology industry. However, both had the mutual agreement on the decline in PC business.

The industry is surly in the post-PC era with tablets and smartphones becoming more ubiquitous every day. The PC industry saw growth on snail’s pace this term with less than stellar demand in laptops and desktops. Peripherals are low in demand as well.

With the major PC and peripheral maker Hewlett-Packard in the process of restructuring its corporate structure to emphasize more on enterprise solutions, the PC industry has no light at the end of the tunnel. HP remains the biggest supplier of the PC-based printers.

IDC has estimated that the total spending in the technology industry this year is expected to be 5 percent at $3.6 Trillion. It accumulates to a 2.5 percent overall growth, which is 0.5 percent more than what Gartner expected earlier.

“In spite of economic uncertainty, which continues to inhibit enterprise investment in some tech segments, the continuing demand for tablets, smartphones, storage capacity and network-performance improvements actually outperformed expectations in the first half of the year,” IDC stated in the report. “Software spending has been robust, even in regions where economic trends have been weakest, as businesses turn to software tools and applications as a means of implementing cost-reduction strategies.”

The estimate comes in the midst of an aching economy all over the world that has forced to lower demand in electronic gadgets. Moreover, cellular carriers, an integral part of the mobile devices are also taking calculated steps, backing from hefty spending.

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Posted by Usman Khalid on Sep 14 2012. Filed under Sci-Tech. You can follow any responses to this entry through the RSS 2.0. You can skip to the end and leave a response. Pinging is currently not allowed.