The ongoing world financial crisis impacted PC sales with leading computer manufacturers Intel and AMD estimated about 40 per cent decline in PC sales in the quarter ended December 31, 2008.

Earlier, Manufacturers Association of Information Technology (MAIT) and IDC forecasted steep decline in PC sales, clearly due to decline in demand in IT segment under the impact of global slowdown.

Sandeep Aurora, marketing head, Intel India, said, "The market is down by almost 25% because of the sentiment rather than the lack of demand or purchasing power. There was a sudden dip in PC sales post-October. However, our plans to invest in the country in R&D for new chips are on schedule."

Meanwhile, MAIT expects a flat market for PCs for the fiscal 2008-09, fearing grimmer situation ahead in the wake of recessionary waves across the world. MAIT executive director Vinnie Mehta stressed the need of new modes of financing and fast implementation of cutting edge technologies like WiMax and 3G for broadband to recover the market and beat global slowdown.

However, vendors expect increase in sales post general election period, hoping increased governmental spending on development projects.