Gartner lowers 2012 tech spending growth forecast

Jan 05, 2012

Research firm Gartner Inc. has lowered its global technology spending growth forecast because of the sluggish economy and the euro crisis.

Gartner said Thursday that the computer hardware sector will be the hardest hit, hurt by supply constraints in the industry. Floods that have left one-third of Thailand under water upended hard-drive production in the country - a major manufacturing hub for the industry.

Gartner now expects worldwide spending on technology to grow by 3.7 percent this year, to $3.8 trillion. That's down from its earlier forecast of 4.6 percent growth. In 2011, global tech spending grew 6.9 percent from the prior year, to $3.7 trillion.

Though the outcome of the euro crisis is not yet clear, Gartner expects businesses and consumers in Europe to be cautious about spending money on technology. The research firm now expects 2012 spending to grow by just 0.7 percent in Western Europe, down from its earlier forecast of 3.4 percent growth.

Gartner includes hardware, software and in its spending forecast. It also includes spending on and services. It expects all sectors to see slower spending growth than in 2011, though , just barely.

Through 2015, Gartner expects tech spending to grow by 5 percent, down slightly from its earlier forecast of 5.4 percent growth.

The effects of the Thailand floods will continue to affect companies through this year and possibly into 2013, Gartner said. The research firm estimates that hard drive supplies will be reduced by as much as a quarter, possibly more, during the next six to nine months. The biggest PC makers will be in the best position to weather the effect of the shortages, but all will be affected, Gartner said.

Explore further: Chinese man brings gay conversion therapy lawsuit

not rated yet
add to favorites email to friend print save as pdf

Related Stories

Gartner forecasts 5.6% rise in IT spending

Mar 30, 2011

Worldwide information technology spending is expected to rise 5.6 percent this year with tablet computers like Apple's iPad helping to drive growth, a technology research company said Wednesday.

Gartner: Tech spending will rebound in 2010

Oct 19, 2009

(AP) -- Research group Gartner Inc. says the information technology industry is closing its worst year on record, with worldwide tech spending on track to decline 5.2 percent in 2009.

Gartner cuts 2011 global PC growth forecast

Jun 09, 2011

Technology research company Gartner lowered its forecast Wednesday for worldwide personal computer growth amid a sharp drop in sales of mini-notebooks and rising interest in tablets such as Apple's iPad.

Recommended for you

Android grabs 85% of smartphone market: survey

11 minutes ago

Smartphones powered by the Android operating system captured 85 percent of the worldwide market in the second quarter, threatening to marginalize rival platforms, a new survey shows.

Chinese man brings gay conversion therapy lawsuit

5 hours ago

(AP)—A gay Chinese man said Thursday he was suing a psychological clinic for carrying out electric shocks intended to turn him straight, as well as the search engine giant Baidu for advertising the center.

Alcatel loss narrows in 2Q but revenue stagnates

6 hours ago

(AP)—Telecommunications equipment company Alcatel-Lucent SA says its net loss narrowed in the second quarter thanks to lower accounting charges, while revenue stagnated and restructuring charges mounted.

User comments : 0