ROUND ROCK, TX - Dell Computer said PC unit growth would slow to 10% for the first quarter, another sign of slowing IT demand for PCs. Demand in the U.S. has improved slightly, however, Dell told analysts gathered at its annual Analysts Day meeting this week.

Dell said its overall business is a little softer. Investment bank Deutsche Bank forecasts Dell's revenues to grow 16% in fiscal 2006.

Dell's PCs grew 15% growth in the fourth quarter and 17% a year ago. The downward trend is consistent with forecasts saying IT spending will slow in fiscal 2006.

Dell expects to gain $30 billion in sales over the next few years, to a target of $80 billion per year.

According to Deutsche Bank analyst Chris Whitmore, Dell is expected to focus on extending its product line into PC software and peripherals, services, servers and storage. "We believe these areas represent substantial opportunities for the company, particularly printers," Whitmore wrote in a research note today.