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As the UK economy stagnates from one recession to another it is inevitable that the squeeze on credit and the general tightening in spending will continue to have a profound impact on non-essential expenditure and big-ticket items. Its most likely impact on the IT sector is deferred purchasing, and an extension of the replacement cycle.

Social networking is a huge social and cultural phenomenon that has exponentially grown in popularity since 2003. However, 61% of UK internet users do not want to engage with brands on social networks,  compared with 57% across other developed countries and a low of 45% in Latin America. One-fifth of the 2,093 Britons in a 2012 survey agreed that social networks are a good place to buy products, compared with the global average of 40%.

There is gathering momentum behind the growth of mobile computing with Apple Corp having created a new market from the traditionally unprofitable market of Tablet computers and Ultrabooks. The previous two generations of iPad have bucked this trend and the iPad 3 or 'New iPad' further strengthened their hold.

The MacBook Air once again from Apple Corp has also developed a competitive market for Ultrabooks (lightweight laptops) that will see extensive competition in 2013, the requirement for ultra portability is likely to strengthen markets for SSD flash drives and spell long term doom for optical drives on portables. Technologies such as USB 3.0 and Thunderbolt will also change the use of portable drives looking forward although costs still seem quite inhibitive for Thunderbolt leading into 2013.

Amazon emerged at the budget end of the tablet market in late 2011 with the Kindle Fire using a parallel strategy of Media integration through Amazon Prime akin to iTunes. This will leave little room for competitors using Android software bases and Windows 8 relying on hardware only. Google also released a budget tablet in July 2012 (Google Nexus 7) that far exceeded the specs of some premium tablets and has further muddied the waters for companies trying to penetrate with high pricing and low spec tablets and has set the bar for tablets with Amazon replying with the Kindle HD and even Apple relenting on its decision that the 7inch tablet was a useless size.

While innovation is clearly driving many sectors of the IT market the current economic climate seems to be forcing many previous early adopter type consumers to rationalise and from a B2B perspective is also slowing down the adoption of the likes of Cloud Computing for many businesses struggling to survive, therefore innovation and adoption of current technologies being put on the back burner.

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