According to recent reports, there are signs that many industries have cut IT spending as much as they can without cutting into the bones of their business. Analysts noted that a long tide of cost cuts is slowly reversing, although IT spending will not roar back to life with a big bang as 2002 draws to a close. Instead, the turnaround is occurring extremely slowly and only in selected sectors.Aberdeen Group, for example, has projected that IT spending will register a 3.1 percent increase globally in the second half of 2002, with an increase of 4.3 percent expected in the United States.Aberdeen senior vice president Hugh Bishop told the E-Commerce Times that the research firm's forecast heralds a very slow turn upward in the fortunes of those who sell IT products and services."It's not a lot right now, but it's a much better picture than what we were seeing a year ago," Bishop said. He noted that a recent Aberdeen survey of 150 corporate IT decision-makers found that they plan to … [Read more...] about Have IT Cost Cuts Gone Too Far?
Slowed its overall growth
Security Record-Setting Global R&D Growth Offset by Uncertainty Heading into 2013Global research and development (R&D) spending is forecast to grow by 3.7 percent, or $53.7 billion in 2013 to $1.5 trillion, according to the closely watched Battelle-R&D Magazine Annual Research Funding Forecast. While much remains uncertain about the future of the U.S. R&D enterprise, China’s march to prominence in the global R&D arena remains constant and strong, accounting for $23 billion on the coming year’s projected growth.Despite the growth, global economic conditions will continue to affect R&D investment in 2013. “In a year of economic upheaval and turmoil, it’s important to remember that R&D is not an instrument that can be quickly turned on and off to trigger economic growth,” said co-author Martin Grueber, a Battelle Research Leader.The U.S. R&D enterprise — which accounts for 8.3 million jobs — is expecting to see … [Read more...] about Record-Setting Global R & D Growth Offset by Uncertainty Heading into 2013
New research from Forrester predicts that spending on IT goods, services and staff will grow 7 percent in 2005 and continue at a similar pace through 2008 -- only slightly faster than overall economic growth. This finding is consistent with the cyclical nature of IT spending, where periods of digestion and refinement follow periods of heavy technology investment.The majority of the respondents to Forrester's Q3 CIO confidence poll plan to increase 2005 IT budgets at a similar growth rate, an average of 6.4 percent. Overall, IT optimism is up quarter over quarter, with the number of CIOs citing a very strong business climate tripling.For the first time in three quarters, a majority of the polled CIOs feel that the climate for their industry is operating in at least the strong category. Seventy-one percent of respondents expect even better performance three business quarters from now, compared with only 5 percent anticipating a decline.Thirty-nine percent of CIOs are spending above their … [Read more...] about Forrester: IT Spending To Grow 7 Percent In 2005
Samsung Electronics says semiconductor sales growth will fall sharply next year, making it the latest company to suggest that the highly cyclical industry has seen the current upturn hit its peak already.Samsung said it expects sales growth for the overall chip industry of less than 10 percent next year, compared to nearly 20 percent growth for 2004. Samsung said memory chip sales would slow the most, due in large part to bulked-up inventories.Other chipmakers, including world market leader Intel, have posted results that have made some analysts speculate that slower growth is on the horizon. For instance, Intel has posted two consecutive quarters with growing inventories, a red flag for some observers suggesting weakening demand -- as well as a drag on the company's profits.Hwang Chang-Gyu, who heads up the chip division at South Korea-based Samsung, said the company would still see higher-than-average growth compared to the rest of the industry."Next year the growth rate will … [Read more...] about Samsung Latest To Say Semiconductor Growth Will Slow
The fastest-growing technology companies in North America are still growing at a rapid rate, but a maturation of tech sub-industries and health of the bigger players has apparently slowed the growth rate, according to the latest Fast 500 Ranking from Deloitte & Touche.Naming mostly software and semiconductor companies in the top slots, Deloitte crowned San Diego-based medical equipment maker NuVasive as the fastest growing of all. Although the top five winners managed to average more than an impressive 45,000 percent growth, it is one of the slowest rates since the Fast 500 list began in 1995."The biggest trend, and it surprised me a little, is the continual decline in the growth rate of the fastest growing companies in the United States," said Deloitte's Deputy National Managing Principal of the Technology, Media and Telecommunications Practice, Tony Kern. He told TechNewsWorld that, after the overall Fast 500 growth rate peaked at 6,700 percent in 2002, it was down to 2,400 … [Read more...] about Fast Growing Tech Companies Slow Down
Nokia, the world's largest mobile phone maker, on Tuesday cut its short-term profit forecast and said it expected slower growth overall heading into 2007.During its annual Capital Market Days event for industry and stock market analysts in Amsterdam, Finland-based Nokia rolled out a series of forecasts for its own growth and for the overall mobile phone industry, detailing strategic moves the company said will enable it to become more of a player in the enterprise space and protect its overall market share lead.Nokia said sales growth would be about 10 percent for 2007, still a strong level but likely half of what it and the rest of the mobile phone industry will experience in 2006.The firm also forecast lower profits from operations, with operating profit margin pegged at 15 percent for the next one to two years, versus 17 percent for this year. Much of that drop will be as a result of its exposure to the slimmer-margin infrastructure business, which will grow after Nokia merges its … [Read more...] about Nokia Expects Slowing Growth, Aims to Expand Market Share
Apple shares have been sliding since Credit Suisse last week warned of weaker-than-expected iPhone 6s demand.Credit Suisse lowered its earnings estimates for calendar year 2016 by 6 percent, based on Apple cutting component orders by as much as 10 percent due to the weak demand, according to a report by analyst Kulbinder Garcha.Credit Suisse lowered its calendar year estimates to 222 million units from 242 million units, revising its overall build expectations for the iPhone 6s to be below 80 million units for the December quarter, and between 45 million and 50 million units for the March quarter, according to the report.The reduced demand likely is due to a number of factors, including currency volatility, the lack of attractive apps related to the force touch function, and other macro uncertainties, Credit Suisse said.Earnings for calendar year 2016 will come in at US$9.81 per share, below consensus estimates, Credit Suisse projected.Apple fell 3.1 percent from around $120 to about … [Read more...] about Time for Apple to Broaden Its Model?
Adding to the mounting evidence that the personal computer market is still in a slump, new figures released Friday showed that "sluggish"sales over the fourth quarter and a weakened economic outlook helped dragthe industry down in 2000.According to preliminary estimates from Gartner-owned research firm Dataquest, worldwide PC shipmentstotaled 134.7 million units in 2000, an increase of 14.5 percent over theprevious year, while domestic sales saw a modest 10.3 percent bump,representing 49.4 million units, in 2000.The year 2000 figures stand in markedcontrast to 1999, which saw record sales growth of 21.7 percent.Although strong demand for PCs in both Asia and Latin America fueled global sales,Dataquest found that last year's worldwide growth rate lagged far behind the 23.3 percent increase registered in 1999 and even fell short of the 15percent to 16 percent gain posted in 1997 and 1998.A report released earlier this month by PC Data found that PC sales fell 24percent in December from a … [Read more...] about Report: PC Sales Gains Slow Worldwide
Facebook is still on its way to 700 millions users, with 687 million actives at the start of June, according to a report by Inside Facebook, which provides analysis of the social networking giant. The trend in the last year shows a new-user influx from countries in the early stages of Facebook adoption, including India, Brazil and Egypt.Overall, however, Facebook growth has been lower than normal for the second month straight, and in some countries, the network's membership numbers are going down.The United States lost nearly 6 million users, going from 155.2 million in the start of May to 149.4 million by the end. This is the first time this year that the United States has lost users.Other countries that posted losses of more than 100,000 include Canada, the United Kingdom, Norway and Russia.It's possible that the figures are skewed by bugs in the Facebook advertising tool used to gather these stats, Inside Facebook noted. Also, seasonal changes such as college graduations and other … [Read more...] about Growth Frenzy Cools as Facebook Gets Dry Behind the Ears
Sales of digital music soared during the first half of 2005, nearly tripling over 2004 levels, but weren't quite robust enough to help the music industry see overall growth, according to sales figures from international music trade group IFPI.Worldwide, music sales for the first six months of this year were US$13.2 billion, a 1.9 percent decrease over the $13.4 billion worth of sales during the same period of 2004. Physical sales -- CDs primarily -- fell more than 6.3 percent to $12.4 billion.But in what could be good news for an industry that has long blamed digital piracy for at least part of its recent woes, digital music sales continued to expand rapidly, rising to an estimated $790 million during the first half of this year, up from $220 million last year. Digital sales now make up about 6 percent of all music sales."The digital music boom is continuing and it is growing at an exciting pace for the music industry, for online retailers and for consumers," said IFPI Chairman and CEO … [Read more...] about Digital Music Downloads Soar, Overall Sales Decline