SAN FRANCISCO: As the latest tech earnings season gets underway in the United States, macro issues loom large.where the next disruptive change will come from or which incumbent is about to get its lunch eatensuddenly finds itself wrestling with an unusually large number of geopolitical and macroeconomic challenges.have raised questions about both rising costs and weakening demand.
But it also suggests that some of the main engines of the IT industry are still firing on all cylinders.IS CONSUMER DEMAND DWINDLING? , how many more will decide this year that it is time to limit their spending on streaming? And which other consumer services will start to show the strain? New hardware purchases are usually the first thing that gets put on hold when consumers and businesses start to feel uncertain.In other parts of the IT market, on the other hand, the picture looks very different.on its earnings call this week, following an overhaul that has included the spin-off of a large part of its services business.According to Arvind Krishna, IBM’s chief executive, IT demand is running at 4 to 5 percentage points above the rate of gross domestic product growth.
The year 2020 turned out to be a bust. But it was followed by a near 10 per cent surge in IT spending last year, and Gartner is predicting that the US$4.3 trillion global IT market will expand at a faster rate than in the years leading up to the pandemic, with a growth of 4 per cent this year rising to 6.6 per cent in 2024.