The online advertising sector, up to now one of the few technology-related bright spots, is also in store for a disappointing quarter, IDC said in a report on the sector. Online ad sales could drop by 5 percent in the first quarter this year, the first dip since 2001.

In yet another survey, also released Wednesday, IDC said that U.S. digital-camera sales dropped 12 percent to 15 million units in the fourth quarter. Earlier, the market researcher had forecast a decline of 9 percent.

As debate about the Obama administration's economic stimulus package and proposed U.S. budget roiled the markets, the Nasdaq, home to many bellwether IT stocks, dipped below 1400 several times this week, closing Thursday at 1391, down by 34 points or 2.4 percent. This is close to where the index was in November after the collapse of Wall Street, a level not seen since 2002 in the wake of the dot-com bust.

If history is a guide, it's not just components that might take years to pull out of the current slump. The Nasdaq as a whole never recovered to where it was at the start of the decade.