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Consumer Electronics

As Corporate IT Spending Drop Apple (AAPL) And RIM (RIMM) Hold On

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By Douglas A. McIntyre Updated Published
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IphoneCorporate IT spending has driven off a cliff. No one should be surprised. The recession has cut into corporate revenue. Many companies are faced with cutting people or upgrading hardware and other services.

Most firms will elect to keep personnel, if they can, and dump the plan for new electronics

According to ChangeWave, 45% of companies it surveyed said they will cut IT spending in Q1 of next year. That is up from about 30% when the poll was taken three months ago. The number of firms which plan to increase IT spending for the same period is down to 10%.

The only bright spot in this cloudy sky is purchases of smartphones. Corporations planning to make that investment rose modestly to 35% when they looked at the quarter ahead.

The biggest beneficiary of the modest trend in smartphone buying is RIM (RIMM) and its ubiquitous Blackberry. Seventy-eight percent of companies planning to pick up this kind of hardware are going with RIMM. Only 22% will buy Apple (AAPL) iPhones.

But, Apple is gaining. In the last survey, only 17% favored its device. For the time being, it is still a toy for consumers.

Douglas A. McIntyre

Photo of Douglas A. McIntyre
About the Author Douglas A. McIntyre →

Douglas A. McIntyre is the co-founder, chief executive officer and editor in chief of 24/7 Wall St. and 24/7 Tempo. He has held these jobs since 2006.

McIntyre has written thousands of articles for 24/7 Wall St. He is an expert on corporate finance, the automotive industry, media companies and international finance. He has edited articles on national demographics, sports, personal income and travel.

His work has been quoted or mentioned in The New York Times, The Wall Street Journal, Los Angeles Times, The Washington Post, NBC News, Time, The New Yorker, HuffPost USA Today, Business Insider, Yahoo, AOL, MarketWatch, The Atlantic, Bloomberg, New York Post, Chicago Tribune, Forbes, The Guardian and many other major publications. McIntyre has been a guest on CNBC, the BBC and television and radio stations across the country.

A magna cum laude graduate of Harvard College, McIntyre also was president of The Harvard Advocate. Founded in 1866, the Advocate is the oldest college publication in the United States.

TheStreet.com, Comps.com and Edgar Online are some of the public companies for which McIntyre served on the board of directors. He was a Vicinity Corporation board member when the company was sold to Microsoft in 2002. He served on the audit committees of some of these companies.

McIntyre has been the CEO of FutureSource, a provider of trading terminals and news to commodities and futures traders. He was president of Switchboard, the online phone directory company. He served as chairman and CEO of On2 Technologies, the video compression company that provided video compression software for Adobe’s Flash. Google bought On2 in 2009.

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