Select: Wireless Internet devices to sell well in 2004

Mexico should see a proliferation of laptops and handheld computers equipped with wireless Internet functions in 2004, Mexican IT and telecoms consultancy Select said in a press release. "The takeoff of wireless Internet following the creation of hotspots in the main cities, including universities, shopping malls and other places, thanks to the Telmex-Intel initiative and Multivision's e-Go will undoubtedly drive the growth of portable hardware such as laptops, handhelds and possibly tablet PCs," Select analyst Susana Espinoza said in the statement. Select forecasted that hardware sales would grow 2% in 2004, compared to a 6% decline this year. Hardware sales are expected to total US$6.19bn this year. Select forecasts IT sales - hardware, software, professional services, and printing - of US$6.99bn this year, a 4.5% decline from 2002 due to weakness in the hardware market, which represents 89% of sector sales. Total IT sales for 2004 are expected to grow 2.7%, according to Select. Select attributed the decline in PC sales to four factors: a weak economy that has crimped the buying power of consumers and businesses, price erosion due to competition from "no-name brand" competitors, government purchases that never materialized, and the decision by market leader HP to price its models under US$1,000. According to Select analyst Fabiola Cruz, few IT companies managed to increase their revenues during 2003 amid the backdrop of a challenging economic environment. "The IT and telecoms industry will change through innovation in business management that will make it an industry that resolves the major business problems of its clients," she said.