Prudential has revised its worldwide PC unit sales and revenue forecasts because it expects outlook to improve and demand to strengthen.

Analyst Steven Fortuna said: "We continue to believe the PC market will show healthy growth for the remainder of 2004, driven by strong demand from the small and medium business market, seasonal demand from the consumer and public sectors, and potential for some year-end budget flush in the large corporate market."

Fortuna is expecting even more robust growth in Europe. He expects notebook adoption to be a key driver of growth in Western Europe, where small and midsize business customers have been more cautious in spending than their US counterparts, reports CBS Marketwatch.

"We believe average selling prices will continue to decline, though a pronounced shift to notebooks (driven by better price points and wireless) and higher attach of flat panels should mitigate some of the traditional pressure," he said.