The local PC market experienced a boom last year, according to ICT market analyst BMI-TechKnowledge.
BMI-T says in its latest annual PC market report that PC shipments totalled 872 398 units last year, reflecting year-on-year expansion of 13.8%. However, as a result of falling prices, the PC market value decreased 12.3% year-on-year to R6 863.08 billion.
Laurika Moller, ICT analyst and author of the report, says the strong growth in 2003 showed underlying demand and price elasticity in the PC market. "The increased growth came sooner and relied more on consumers than expected but ultimately signalled a market recovery."
Driving forces behind the PC market in 2003 were the strong demand from small and medium enterprises, coupled with the shift towards mobile and wireless technology and the scrapping of ad valorem taxes on PC equipment.
"There was a high demand for wireless solutions with Intel`s Centrino shipping 13 621 units in SA during 2003 as corporations saw the aggressive pricing and benefits of mobile technology becoming more attractive over desktops," says Moller.
She notes that the PC refresh cycle has not developed as rapidly as originally anticipated. "Currently we don`t expect a sudden rush of PC replacements. Growing cost to maintain older systems and improvements in the cost of owning newer PCs will compel companies to upgrade. With an improved sense of security supporting consumer confidence, low prices and strong notebook demand are expected to boost consumer PC purchasing."
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