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Shopping for Tech
Oleh:
Curran, John
Jenis:
Article from Bulletin/Magazine
Dalam koleksi:
Fortune vol. 162 no. 9 (Dec. 2010)
,
page 39-41.
Topik:
Shopping for Tech
;
The forecast was alarming
;
Great Recession
;
Spending by budget-strapped governments.
Ketersediaan
Perpustakaan Pusat (Semanggi)
Nomor Panggil:
FF16.44
Non-tandon:
1 (dapat dipinjam: 0)
Tandon:
tidak ada
Lihat Detail Induk
Isi artikel
The forecast was alarming. When Cisco CEO John Chambers announced the networking giant's latest quarterly earnings on Nov.10, he warned Wall Street that, due in part to cutbacks in spending by budget-strapped governments, sales for the next three months would probably be less than half of what analysts were expecting. Even worse, he slashed the company's full-year revenue projection by about $1 billion. The stock of the tech bellwether immedi- ately plummeted, dragging down the broader sector and the Dow with it. That was just the latest twist in what has been a roller-coaster ride for tech stocks over the past couple of years. And the news raised questions about whether the long-delayed rebound in tech spending which appeared to have momentum earlier this year-is sputtering. But for investors willing to weather some volatility, say tech analysts, the pullback in tech stocks is an opportunity. Over the longer term, they believe, increased tech spending is a real and powerful trend. The PC-replacement cycle (a phrase that actually covers most computer related hardware) should have kicked off in early 2009, when the average machine in use was three years old. That's about the age that office computers start to slow down and have problems, making it cheaper for companies to replace their equipment than repair it. However, the market collapse of 2008 and the subsequent Great Recession put that predictable surge in tech spending on hold. As the world financial system came unglued, corporate profits too a dive and company IT budgets went into a deep freeze. Global spending on computer hardware declined 12.3% in 2009, according to tech consultancy GartnerInc.
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