Thursday, December 30, 2010

Tech Stocks Set to Soar in 2011

By: Kerri Shannon

Technology companies, and tech stocks, started a revival in 2010 and are heading toward an even more profitable 2011. That's because a new age of computing - one that prioritizes mobility and efficiency - has dawned in the computing world.

Indeed, we've entered what researching firm International Data Corporation (IDC) calls a "new era" of computer usage.

Roughly half of all regular Internet users in 2011 will use non-PC devices, according to IDC, which says a trend becomes mainstream when it constitutes more than 15% of the market.

Just as the smaller PCs of the 1980s supplanted the lumbering terminals of the 1960s, PCs are being replaced by a variety of hand-held devices - like Apple Inc.'s iPhone and iPad and Research in Motion Ltd.'s Blackberry.

"The PC-centric era is over," IDC said in its annual report, released in November.

The firm predicts 330 million smartphones will be sold worldwide next year along with 42 million media tablets.

"These devices will be increasingly embraced as complements if not substitutes for PCs where voice and light data consumption are desired," Raphael Vasquez, an analyst at tech research firm Gartner Inc., said in a statement.

A slowdown in global PC shipments is already hitting manufacturers. Gartner cut its 2011 prediction for PC shipments to a 15.9% rise from 2010, down from the 18.1% increase the firm originally expected.

By mid-2012, non-PC devices are expected to out-ship PCs, Gartner says.

http://seekingalpha.com/article/244003-tech-stocks-set-to-soar-in-2011-as-new-era-of-personal-computing-dawns?source=dashboard_stocks-sectors

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