Despite having less of a head start than their peers in Western countries, average Poles have adapted to the internet and the possibilities it offers with admirable speed. In many ways, online infrastructure in Poland has outpaced that of many other countries - compared with many areas of the United States, for example, online banking and bill-payment options were available here earlier and adopted more quickly.
Poland's online revolution has, naturally, been empowered by the spread of computers. And the country's successes have come in spite of the fact that IT hardware penetration has grown slowly. But things are improving every year.
IT has arrived
According to research and consultancy firm PMR's IT market in Poland 2008. Development Forecasts for 2008-2012 report, the overall IT market in Poland was worth zł.24 billion in 2007. This marked a 16.5-percent rise from 2006 and the fastest growth since 2000.
Hardware comprised half of this market and the number of computers present in Poland is rising every year. Sales of computers rose by 20 percent y/y last year, with over three million sold. Sales of monitors and peripheral hardware, such as scanners and printers, rose by 31 percent y/y to $6.3 (zł.13.6) billion.
Laptop (or notebook) computer sales drove this growth and, according to a report by Money.pl, the number of laptops sold this year is expected to top desktop sales for the first time in Poland.
In the EU, an average of around 60 percent of households had access to a computer in 2007, according to the Central Statistical Office (GUS). In the same period, 50.1 percent of Polish households had computers, while in 2006 this figure was 43.7 percent.
This growth, experts say, is why the overall IT market in Poland will continue to develop for several years, until it reaches saturation. According to PMR, annual growth of over 10 percent will continue for at least a couple of years. This year, meanwhile, growth is expected to hit 16 percent.
Immature, but aging
The fact that hardware accounts for such a large percentage in the IT market is a strong indication that the market remains immature and there is room for growth in the future. In more mature markets, the percentage of hardware in total turnover noticeably declines, while the contributions of software and services rise.
"The relatively strong position of the hardware segment is primarily an effect of a boom on the consumer market, with very high sales of laptops and LCD monitors," said Edyta Kosowska, a PMR analyst. Sales of desktops haven't significantly slowed either.
Marek Dietl, an analyst at Simon-Kucher & Partners, said that IT companies have recently taken notice of the hardware market's potential and moved to take advantage of it.
Some of the largest international players in the hardware sector are present in Poland, whether in retail or manufacturing. A number of these, like Dell Computer Poland, also manufacture here. Dell is the largest investor in the hardware-production sector, having in 2006 invested EUR200 (zł.651.1) million in its Łódź plant, where Latitude and Inspiron model laptops are produced. In explaining its reasoning for situating its plant here, Dell pointed out that Poland is the sixth-largest computer market in Europe and that IT is becoming ever more important for the business sector.
There are a number of Polish companies also making an impact. Warsaw-based NTT System, the largest hardware producer, and Karen Notebooks, which sells laptops, are among them. The latter has developed into an especially attractive asset, leading Komputronik - a Polish firm specializing in IT retail, distribution and services - to acquire it in May 2008.
Hard-driven demand
Poland's growing economy and increasingly globalized society are major factors driving the IT boom in the country, according to experts. The recently cheap US dollar assures low prices for hardware, which has further accelerated sales growth.
"Society is richer. After Poles have [already purchased essential goods], they can think about computers," said Dietl.
Through increased contact with other countries since the end of communism, Poland's well-educated population has become more open to new ideas and its IT needs have grown. Poles often communicate with their friends abroad via computers and software. This, in turn, has contributed to a demand for new and better products.
"More and more Poles are studying at university, so the need for high-quality IT devices is becoming obvious and along with the higher education level, the necessity rises," explained Dietl. People not only use computer devices for education, but also increasingly seek online content as opposed to books.
Cheaper solutions
Hardware prices are also less daunting now than they used to be. In 1990, the purchase of an average-quality PC translated into about 18 months' wages, according to GUS. The average price of a PC has since decreased to the point where it is lower than the average monthly wage. The pace at which technology has developed means that consumers now pay less for better devices.
The złoty's appreciation against the dollar has also helped the market to develop. Over 90 percent of the global computer market is valued in dollars. Thus computers in Poland, long overpriced in comparison to those sold in many other countries, have become relatively less expensive in recent months.
Dietl added that Poles had only recently recognized that hardware had become more affordable. "Wages have risen over 10 percent and the dollar has fallen by 30 percent, resulting in a price cut of almost half for computers," said Marek Dietl.
Demand has also been stimulated by large orders from Polish companies, which need and can afford to develop their IT departments. At the end of July, for example, copper giant KGHM chose Lublin-based Mercus Serwis to supply almost 2,000 computers.
Laptop vs desktop
Experts agree that laptops will be in the limelight in 2008, as was the case in the US in 2006. Prices are lower than several years ago and the added practicality and mobility offered by laptops lead people to choose them over desktops.
However, Dietl claimed that although laptops sales will continue to grow, they won't grow as quickly as expected. People used to choose laptops because they were quieter, or because the monitors were better and did not damage the eyes as much as other monitors. The situation is changing, though, as desktop computers are now on par with laptops in terms of these features.
"The intrinsic natures of Poles and other post-communist citizens will assure that laptops do not replace desktops entirely," said Dietl. "We do not like to throw anything away. And desktops can be upgraded without throwing away [the main part of the computer]. Laptops unfortunately become outdated very quickly," he told WBJ.
Gaining momentum
As Poland continues to integrate with the developed world, more Poles are logging on to the internet. And this trend will grow every year, as higher education reaches more people and they become more comfortable in the international context.
The amount of computer hardware needed will grow along with that. PMR estimates that in Poland approximately five million computers will be sold in 2010. Should growth continue at the same level and prices remain competitive, there could be at least one computer per Pole in less than 10 years.
