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Poor PC sales cut IT spending forecast in two

IT sales for this year will rise approximately two percent, less than the four percent growth expected a few months ago. According to tech research company Gartner, this could be largely attributed to the plunge in PC sales earlier this year and the fact that smartphones and tablets are getting cheaper and sexier.

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Gartner had to change its tune as the US dollar fluctuated in the last few months together with economic forecasts pointing in the same direction. Nevertheless, total sales are still a massive US$3.7-trillion going towards computer hardware and software.

As stated by the report, “while new devices are set to hit the market in the second half, they will fail to compensate for the underlying weakness of the traditional PC market.” PC sales are expected to drop by a massive 10.9% this year. Mobile devices are being handed the torch with a 38.9% rise in tablet sales and smartphones growing 9.3%.

While IT spending is slowing down as a whole, mobile devices (sometimes referred to BYOD or Bring Your Own Device), are keeping customer spending stable as personal computer sales continue to decline.

Seeing as most industry leaders are head-quartered in the United States, IT sales are measured with the backdrop of the US currency. So in “constant currency,” IT sales are expected to grow by 3.5% and not two percent.

These forecasts come after PC sales felt their worst and sharpest decline in over the two decades. The first three months of 2013 saw PC customers shying away from Windows’ new operating system while at the same time flocking to mobile devices. Total PC sales plunged a massive 14% during the first few months of this year, with no chance of an upward curve any time soon.

As more and more people in emerging markets have money to spend, and smartphone and tablet prices keep falling, they will increasingly become the preferable option.

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