IDC cuts worldwide 2005 PC forecasts
'Worsening economic conditions
Analyst house IDC has cut its forecasts for PC sales for the year - it now expects the market to grow by four per cent in Western Europe, five per cent in the US and just one per cent in Japan.
Stephen Minton, vice president of worldwide IT markets at IDC, said the first quarter was mainly stable and some vendors performed solidly.
But he warned:”There were some mixed signals in the United States, however, and in Europe the worsening econmic conditions began to impact IT spending towards the end of the quarter.”
"We remain focused on the downside of expectations for Q2 and the rest of the year, with interest rates, oil prices, and currency fluctuations all potential wild cards which could impact business confidence and investment.”
IDC forecasts worldwide IT growth will slightly outpace growth in GDP. Between 2005 and 2009 the global IT market will grow at a compound annual rate of six per cent, down from the eight per cent growth predicted back in March. China, India and Russia are likely to show the strongest growth.
The need for bandwidth and increasing use of wireless networks will drive network spending which is expected to reach $61bn in 2005.
Press release here ®