IT DOESN'T take a rocket scientist to predict that the American IT market has come to a full stop, after the recession reared its ugly head globally. Already, research firm IDC has forecasted that infocomm technology spending in the US will fall from 4.2 per cent per annum to 0.9 per cent in 2009.
In Asia-Pacific, IT will slowdown from 9.5 per cent to 5.8 per cent or US$196 billion (S$296 billion) in 2009.
Most of the growth will be in emerging markets like China and Vietnam where businesses would need IT to cut costs and reach customers more effectively, said IDC’s analyst Mr Claus Mortensen, who focuses on emerging technologies research.
Another major forecast from IDC is that netbooks or the ultra-mobile PCs – those small notebook computers with screens of 10-inches and less – will have its last gasp this festive season.
For gift buyers, it is the newest thing to give loved ones, children and friends instead of the tried and tested presents like iPods and digital cameras, said IDC’s senior manager of Asia/Pacific Personal Systems Research.
However, netbooks are likely to lose popularity even though they are affordable at $800 or less each.
As consumers’ wallets shrink, they’re likely to give netbooks a miss, preferring to squeeze out a few more hundred dollars to get full-featured notebook computers.
Netbooks’ disadvantage is that they’re small and good for email but not for intensive computing tasks like spreadsheets and gaming.
Stephanie Gwee is an intern with Digital Life