IDC forecasts slowdown in government PC spending

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Framingham, Mass. --In what may be more bad news for technology marketing, IDC, the research division of International Data Group, reported Friday that it expects the growing budget difficulties to constrict governmental PC demand in 2003.

“What's new is that public sector spending on PCs is slowing,” Loren Loverde, director of IDC's Worldwide Quarterly PC Tracker, said in a statement.

“The decline in government and education spending is not unexpected, but it is accelerating, and the impact is showing on PC demand.”

IDC reported that worldwide PC shipments reached 38.4 million units, with a value of $46.9 billion, in the fourth quarter of 2002. Year-over-year shipment growth totaled 3.7% in the fourth quarter, which was due to moderate consumer demand and continued caution on the part of businesses.

For all of 2002, total shipments approached 136.2 million, growing 1.4% over 2001. But while shipments increased, their value declined by 9.8% in 2002.

IDC expects shipment growth of 6.9% this year, but it expects value to decline 1.8%.

--Sean Callahan

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