Q1 2006 Global Technology Data Book

Key Additions and Revisions in the Q1 2006 Global Technology Data Book
The majority of 2006 growth estimate revisions made in this edition were overwhelmingly positive, although expectations for
1Q06 appear more muted than a quarter ago. Notably, this is the second consecutive quarter in which our analysts have upwardly revised carrier capex, IT services, and semiconductor capex estimates. Meanwhile, we’d highlight two downward revisions,
WLAN revenue and total Interactive Entertainment (Gaming) revenue, both partly due to a stronger than previously expected 2005. In addition, we added more granular storage metrics, including NAS, Networking, and storage software revenue. These three areas are expected to grow in the low to mid-teens in 2006.

Themes for 2006
Our analysts’ view of 2006 is being guided by several new product cycles that are expected to impact demand and pricing trends, including Microsoft Vista, and expectations for parts of the
hardware food chain are more back-end loaded (i.e. NBs). Our analysts are looking for continued positive revenue growth in many sectors within their industries in 2006, and another upward tweak to global GDP this quarter further supports this view.

Premium and Slower Growth Markets
In 2006, our analysts expect strength in game consoles, iPod units,
integrated digital TVs, LCD monitors, Taiwan notebook units, SSL VPN Appliances revenue, messaging security revenue, VoIP revenue, Internet advertising revenue, and software revenue in India. Weakness is expected in inkjet printers, Unix servers, DVD player and digital still camera revenue, and global consulting billing rates.

Global Industry Views
Please see page 41 of this report for a complete list of our global industry views related to technology.

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