Tech sector to recover in 2010, analyst says
NEW YORK (AP) – The tech downturn is over and a recovery is on the way after a "dismal" 2009, as companies resume spending on computers and software, according to a new analysis.
Forrester Research Inc. reported yesterday that it expects global spending on technology products and services to grow 8.1 percent in 2010, to more than $1.6 trillion. US spending is expected to rise 6.6 percent, to $568 billion.
The projected increases follow sharp declines in 2009, when businesses and governments slashed their purchases of PCs, computer peripherals and communications equipment in response to the economic turmoil and credit crisis. Even with the expected rebound, "the level of computer equipment purchases in 2010 will still be lower than in 2008 or even 2007," said Forrester analyst Andrew Bartels.
With the recession over, pent-up demand for new computers and updated software programs stands to benefit the companies that make them. The October launch of Microsoft's latest computer operating system, Windows 7, also gives companies a reason to start replacing PCs.