Dell COO sees tough year for technology

CALIFORNIA: Dell Computer Corp. Chief Operating Officer, Kevin Rollins has said that corporate spending on technology will be soft this year due to the weak economy and concerns about a potential U.S. war with Iraq.

"What we have felt all along is that much like 2002, 2003 will be a fairly difficult year due to the economy more than anything else," Rollins said.

"The overhang with the potential war makes people skittish and nervous," Rollins said.

"Once the economy rebounds, spending on information technology will not rise sharply or aggressively. When the war is resolved - however it is resolved - I don't think you're then going to see a massive resurgence in IT spending," Rollins said. "It's all going to be fairly muted."

Rollins also said that Dell would continue to be very aggressive on pricing this year due to declines in the cost of components.

© Reuters