To: BBG who wrote (94254 ) 2/2/1999 9:50:00 PM From: Mohan Marette Read Replies (1) | Respond to
U.S IT Market will continue to grow in 1999-Dataquest. U.S. IT Market Continues to Grow in '99 BOSTON – Continued growth is expected across the board in the U.S. IT market this year, with the markets for PCs, servers, services and online products likely to continue growing throughout 1999. Spending on PCs in the U.S. will jump to $71.56 billion in 1999, compared to $67.9 billion expected this year, Dataquest forecasted. Updated mobile software and the arrival of the Windows 2000 operating system are likely to spur an upgrade cycle in the second half of 2000, with Dataquest predicting that PC spending will reach $78.9 bilion in 2000 and $89.9 billion a year later. In the computer systems and servers market segment, Dataquest forecasted U.S. spending will hit $18.5 billion this year, rise slightly to $19.27 billion next year and stay relatively flat through 2000, when Dataquest predicts sales will reach $19.67 billion. As far as PCs go, prices are stabilizing for commercial desktop machines as companies move to standardize across the enterprise, Miller said. But the corporate market is saturated – the only way to push growth is to boost the replacement cycle, he added. And one way to accomplish that is through price cuts, which are a necessity when prices drop as they have in the consumer market. Another option for speeding replacements is to offer corporate users something different from what is available commercially, Miller added.
