China's personal-computer market is expected to see a big recovery in the second half of the year as the impact of the Sars outbreak fades, according to International Data Corp (IDC). The research firm is forecasting a 17 per cent full-year increase in PC shipments to 12.9 million units. IDC senior research manager Bryan Ma said Sars would affect only second-quarter PC sales. 'We did take a conservative approach in terms of the impact of Sars; we assumed a very pessimistic situation. Right now, it is starting to appear that the situation has been very well contained. Hopefully we should begin to see improved numbers going forward,' said Mr Ma. Legend Group, China's largest PC maker, is aiming to achieve double-digit revenue growth this year on the back of a recovery in the PC market and its efforts to diversify product lines. 'Last year, our top line only grew by 5 per cent, we are confident that we can do better,' Legend chief financial officer and senior vice-president Mary Ma said. Ms Ma blamed a fall in the price of PCs for the erosion of sales revenue last year: 'The market's average selling price plunged 17 per cent last year and we registered a 14 per cent decline. But this year's drop will be less dramatic.' IDC estimates the average price of PCs will fall to US$710 this year from $820 last year - a 13.4 per cent decline. The price fall would offset a rebound in unit shipments, leaving the market size unchanged at US$9.12 billion, IDC said. 'It [the price fall] is a combination of both [competition and component prices], but probably a little bit more on component prices,' said Mr Ma, adding that a fall in prices for flat-panel monitors would help drag down PC prices. Meanwhile, Ms Ma said Legend had budgeted 85 per cent of this year's HK$1 billion to $1.2 billion capital expenditure for diversifying its product lines.