Tech Firms Jockey Ahead of Recovery

In a brutal year, technology companies responded by hunkering down and developing new products at a faster rate as they tried to wrest sales from one another.

While 2010 isn’t expected to be a blockbuster, consumers have shown they are still willing to spend on gadgets, at least for hot products like Apple Inc.’s (AAPL) iPhone and Amazon.com Inc.’s (AMZN) Kindle.

There are also signs that frozen corporate budgets are thawing–driven by aging equipment, falling hardware prices and new offerings, notably Microsoft Corp.’s (MSFT) Windows 7.

Tech vendors are tapping demand in China, India and other emerging economies for products like laptop computers and cellphones. At the same time, Web connections are being added to existing products in new ways that are spurring buyers into action.

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