Hardware will see biggest growth in 2010, analysts say

PC spending to rise, but not by much

Worldwide spending on PCs will rise by just three per cent this year, as the industry continues to feel the effect of the recession, analysts say.

According to a new forecast from IDC, PC spending will actually be better than the two per cent growth originally predicted. Overall spending on information technology is expected to reach $1.48 trillion in 2010, an increase of three per cent on last year.

"Following a decline in overall tech spending of 4.5 per cent at constant currency in 2009, IT spending will not fully recover from the global recession until sometime in 2011," said Stephen Minton, vice president of worldwide IT markets and strategies at IDC.

IDC expects hardware spending to grow by 5 per cent, while software and services will see rises of 2 per cent and three per cent respectively. The forecasts for servers, storage, peripherals and network equipment have also been raised.

The report is based on constant currency, and does not allow for future fluctuations in the value of international currencies over the next 12 months.

"Despite pent-up demand for upgrades and new applications following the deep spending cuts of the past year, economic uncertainty will combine with capital and credit constraints to inhibit spending in mature economies," Minton said. "The engine of global industry growth in 2010 will be in emerging markets, in particular China and India, where IT spending will recover much more quickly."

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