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I.T. Spending On The Rise
Worldwide IT spending remains on track to increase by 6% in 2012 despite the grim economic conditions in Europe, thanks to strong software, storage, smartphone and tablet sales, according to IDC.
While 2012 has been a tough year for many IT vendors, they have done better overall than many expected in the first half of the year, IDC said.
For example, software spending has been robust, even in parts of the world where the economy has been weakest, as businesses hope software tools and applications will help them implement cost-reduction strategies.
The 6% growth compares to a 7% increase in worldwide IT spending last year. IDC expects 6% growth in 2013.
Software, storage, enterprise network and mobile device markets have offset weaker sales in servers, peripherals and PCs. However, the launch of Windows 8 during the fourth quarter should help the PC market recover next year, IDC said.
U.S. IT spending will grow by 5.9% in 2012, compared to 8.5% last year. However, the strength of the dollar during the first six months of the year means that IT spending in dollar terms will grow just 4% for the full year.
Lenovo Passes Dell, Becomes No. 2 PC Vendor
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Lenovo surged past Dell to become the world’s second largest PC vendor at the end of the third quarter, according to research firms IDC and Gartner.
Top PC maker Hewlett-Packard also saw its worldwide PC shipments grow by 5.3 percent in the quarter, despite reports that the company may spin off its PC business.
Both research firms said growth for the quarter failed to reach earlier projections. IDC said at the end of the third quarter, worldwide PC shipments increased by 3.6 percent year-over-year, below its earlier 4.5 percent growth projection.
Gartner said PC shipments grew by 3.2 percent year-over-year, which was lower than the research firm’s original projection of 5.1 percent growth for the quarter.
Analysts have pointed to sluggish spending because of weak economic conditions as a key reason behind the slowdown in PC growth. The rise of tablets has also hurt shipments.
“For the moment, PCs have taken a backseat to a range of other devices competing for shrinking consumer and business budgets,” said IDC analyst Jay Chou in a statement.