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Technology Stocks : Applied Materials No-Politics Thread (AMAT) -- Ignore unavailable to you. Want to Upgrade?

To: Proud_Infidel who wrote (8271)	12/10/2003 8:51:01 PM
From: Proud_Infidel	Read Replies (1) \| Respond to of 25522

Surge in corporate PC spending seen in '05, '06 By Mark LaPedus Silicon Strategies 12/10/2003, 8:22 PM ET SANTA CLARA, Calif.--The long-awaited corporate PC upgrade cycle has slowly begun after several false starts, but don't expect a sudden surge or "upheaval" in IT spending until 2005 or 2006, according to analysts. In fact, the corporate PC market is projected to be flat in 2004 over 2003--a somewhat disappointing trend considering the historical patterns in the marketplace, according to analysts. The so-called "PC refresh cycle" is expected to take place every three to four years based on historical patterns. The last PC boom for the both consumer and corporate markets occurred during the "dot.com bubble" in 1999. So in effect, the PC upgrade or "PC refresh cycle" in the corporate market was supposed to take place in 2003 or so, according to analysts. In reality, though, the corporate PC market appears to be lagging. This segment is expected to grow 10 percent in terms of unit shipments in 2003, with similar growth projected for 2004, said Steve Kleynhans, vice president of technology research services at the Meta Group, a market research firm. "The current stagnant IT environment won't last forever," he said. "Prepare for a major upheaval in the 2005 and 2006 time frame." Kleynhans also said that the current PC upgrade cycle is turning into what he called the "PC repair cycle," where corporations are generally extending the lives of their installed base of systems rather than procuring new computers, he said. Corporations are generally providing operating-system software fixes and related upgrades instead of buying new, full-blown systems, he said. Corporations "have not stopped buying PCs," he said. "They are trying to hold the line. They are trying to extend the life of their PCs," he said in a press event at Intel Corp.'s headquarters on Wednesday (December 10, 2004). The slowdown in the corporate PC market goes beyond economic pressures. "There is a perception there is nothing new or interesting in the end-user space. So whey do I need to buy?" he said. But still, there are signs of life in the corporate PC market. "2003 looks better than 2002," said Brian Fravel, director of desktop marketing at Intel. "We're starting to see IT buys, but IT managers cannot afford to buy all of their PCs at once," Fravel said. "Hopefully, 2004 is better than 2003. But don't expect a tenfold jump in corporate purchases," he said during the press event. What's driving the corporate PC market? Notebooks and wireless-local area networks, he said.