Analysts are starting to question last month's doom and gloom warnings from PC manufacturers.
A number of companies, including Hewlett Packard (HP), Apple, AMD and Intel, issued scaled back sales expectations last month maintaining that consumer demand remains sluggish.
But some analysts are starting to wonder whether this is to do with the companies' poor performance rather than reflecting the IT sector as a whole.
Pointing to manufacturers like Dell, which is on course for eight per cent sales growth, analysts IDC recently raised its forecast for 2002 PC unit sales growth to 4.7 per cent, expecting to see renewed market strength especially in the US.
Other analysts are suggesting that the economy is showing signs of hope that bode well for consumer buying.
Peter Williams, of Silicon Valley-based DataWatch, said that consumers are starting to buy computers, although corporates are still slow to shell out money.
"With demand there, I am predicting that there will be a boom in a few months as people realise that there are a lot of low priced technology shares in fairly profitable companies on the market," he said.
HP told Reuters in early June that resellers had roughly twice as much inventory as usual, and that the glut masked an increased demand.
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