IT Will Grow in 2010: Apple and Green-Tech Will Lead the Way (AAPL, RIMM, GOOG, MSFT)
Technology research firm IDC is forecasting 2010 growth of 3.2 percent for the information technology industry, a move which would mark a return to 2008's spending level of $1.5 trillion.
In its Top-10 predictions list for 2010, the firm said it sees an explosion of growth in mobile devices and green technology, among others. Also, as the face of the IT industry shifts from where it was in the pre-recession economy, IDC sees emerging markets as another avenue of expansion.
IDC believes growth in the IT industry is on the verge of strengthening as demand for PCs and mobile devices returns from its recessionary hibernation. Consumers -- both personal and corporate -- are expected to spend more freely in a recovering economy, as purchases put off to lower expenses are set to be revisited.
The research firm also expects the hardware, software and services sectors to grow by 2-4 percent next year. Out of the three, IDC expects the hardware industry to show the weakest recovery in 2010.
IDC is also predicting that the recovery of the global economy will boost the worldwide telecom industry by 3 percent in 2010 when established telecom hot-spots will rebound towards pre-recession levels, and emerging strength in the mobility sector will be seen in growing markets. IDC sees emerging markets accounting for more than half of the growth in the IT industry.
While IDC does see 300 million PCs being sold, the firm forecasts a watershed year for the ascension of mobile devices. The end of the PC will not come in 2010; however more and more mobile devices will access the internet, more applications will be created and more developers will be drawn to creating the next great widget for mobile devices.
According to IDC, the beneficiaries of the mobile device boom will be Apple’s (NADAQ: AAPL) iPhone and Research in Motion’s (NASDAQ: RIMM) Blackberry, as well as a growing number of phones that carry the Google (NASDAQ: GOOG) Android and Microsoft’s (NASDAQ: MSFT) Windows Mobile operating systems. Specifically from these manufacturers, IDC sees devices to be shipped in 2010 nearing 200 million.
IDC expects another big year from Apple, predicting that the long rumored Apple Tablet will finally hit the market. The "iPad" will be more of an oversized iPod Touch than a tablet computer; however the overwhelming success of the of the iPhone and iTouch line will ensure the success of an Apple device that can provide an enhanced experience for watching videos or reading media.
As for green-tech, IDC says that the Copenhagen Climate Change Conference later this month will surely put pressure on governments around the world to step up initiatives towards sustainability, driving the manufacturing industry for clean energy products.
Overall IDC is seeing a rebound year for the IT market. Fresh products and new directions will surely make the next year one to watch.
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