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iSuppli cuts 2009 PC growth forecast by two-thirds

The economy's stupid

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Next up in November's cavalcade of plummeting confidence in the IT industry is the data tracking firm iSuppli, which is lopping off its growth forecast for PC shipments by nearly two-thirds.

The bean counting firm now expects global PC shipments to grow by only 4.3 per cent in 2009, compared to its previous forecast of 11.9 per cent growth.

It has divined doom-and-gloom in the IT biz the next year too. PC shipments in 2010 are now expected to increase by 7.1 per cent, versus its earlier forecast of 9.4 per cent growth.

For perspective, iSuppli has reported annual growth rates of about 10 per cent for five consecutive years. Its 2008 numbers are expected to be the sixth, with 13 per cent growth expected.

Aught nine is predicted to be the combo breaker.

"Since iSuppli published its last worldwide PC forecast, the landscape of the global economy has changed dramatically, and in many ways irrevocably," said iSuppli analyst Matthew Wilkins in a statement.

Wilkins added businesses are presently worrying about paying staff or making rising mortgage payments, putting the acquisition of new IT equipment in the back seat.

"The result of the financial turmoil is less money to spend, and often that money is itself more expensive," Wilkins said. "With less money to spend, application markets, like PCs, have been impacted."

The firm does offer a little bit of optimism as a parting shot. While iSupply predicts that in 2009, desktop PC shipments will decline by about 5 per cent, notebook PCs will achieve growth of about 15 per cent. That's all thanks to strong demand for small, inexpensive netbooks, which can easily fit into the cardboard boxes and pickle barrels we'll all soon be living in. ®

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