PC sales to grow 20% in 2002-03

The sales of personal computers would grow at over 20 per cent during 2002-03 as against 15 per cent projected earlier, according to the latest estimates of the Manufacturers' Association of Information Technology.

As a result, for the first time, annual PC sales are expected to breach the two million mark during the current financial year.

Earlier projections had put the year-end figure at 1.9 million. The sales of personal computers had dropped 11 per cent to 1.65 million units during 2001-02, compared to the previous year.

"We have seen a lot of improvement in the performance of the domestic hardware sector. One of the major contributors is Reliance Infocomm," says Vinnie Mehta, executive director, Mait.

"The software sector recorded its best sales a couple of years ago at 1.88 million units. That was during the boom time, but this year is even better," he added.

"Large projects like Reliance Infocomm generate a great demand for infotech products, both hardware as well as software. We have seen a better pick-up in the market due to this," said a senior executive with a Delhi-based hardware manufacturer.

He also said the personal computer companies were expected to show a better performance in 2003 compared to last year.

"We see a better market this year. The commercial as well as consumer demand has picked up,"  he added.

Besides, projects like Reliance Infocomm will bring more work to the hardware companies in the form of post-sale services.

"The services and maintenance opportunities such big projects offer are huge. We think the domestic companies have a great business opportunity there," Mehta said, adding that not just the personal computer manufacturers, but server and networking companies were also likely to record major increase in sales due to the Reliance project.

The demand of infotech products by Reliance Infocomm comes at a time when the market is showing signs of a recovery.

In the personal computer market, banks, educational institutions, the government sector, information technology and infotech-related companies have provided the recovery thrust to the hardware companies.

"We have seen some pick-up in these sectors. Besides, the overall buying sentiments have also improved," Mehta said.

In the household segment, reduced prices coupled with increased promotional schemes and loans, have been instrumental in bringing about the recovery.