Hardware sales growth slow: Gartner

The hardware market is growing more slowly than expected, says market research company Gartner.

The hardware market is growing more slowly than expected, says market research company Gartner.

According to Gartner, the revenue for computer hardware systems vendors in New Zealand is projected to grow 6.9% in 2002 with revenue of $US590 million, up from $US552 million last year. Gartner hardware analyst Matthew Boon says an economic recovery wasn’t evident in the first quarter of 2002, but he believes much of the forecast growth will come in the latter part of the year.

PCs are forecast to account for $US451 million of end-user spending this year, up from $US407 million in 2001, while servers will account for $US99 million. This represents a decline from $US101 million in 2001.

New Zealand hardware systems shipments are forecast to grown at 8.5% in 2002 with overall unit shipments of approximately 531,000 forecast. In 2002 PC shipments will account for 60% of all hardware system shipments. Gartner predicts that PC shipments will grow at 10.8% during 2002, but expects growth rates to slow in coming years.

Gartner predicts end-user spending for the hardware systems market will continue to decline steadily overall due to New Zealand’s maturing market and a general fall in average selling prices across the board.

Gartner will hold seminars on servers and storage in Wellington on Tuesday and Auckland on Wednesday. Aimed at end-users, the seminars will feature Gartner analysts examining market trends and discuss issues around hardware infrastructure choices.

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