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‘PC sales to log 15% growth with 7.2 million units’

Corporate Bureau

Posted: Wednesday, Feb 06, 2008 at 0026 hrs IST
Updated: Wednesday, Feb 06, 2008 at 0044 hrs IST


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New Delhi, Feb 5: Growing at 15% year-on-year, personal computer sales are projected to cross 7.2 million units by the end of this fiscal, with desktop and notebook sales adding 5.5 million and 1.75 million units, respectively, said hardware industry body Manufacturers' Association for Information Technology (MAIT) on Tuesday.

MAIT's industry performance review for the first-half of financial year 2007-08 found total PC sales between April and September 2007 were 3.28 million units, registering a growth of 11% over the same period last fiscal. The growth was driven by notebook sales, which grew by 59%, although consumption of desktops grew by only 3%.

“Notebooks have emerged as a significant driver for the PC market in India in the first half of 2007-08. Sales of notebooks surpassed 0.68 million units growing 59% over the same period last year, accounting for 21% of the total PC market in the country. Notebooks accounted for less than 3% of the PC market four years ago,” said MAIT executive director Vinnie Mehta.

Although the sales to the large enterprises were less than expected especially in the case of desktops, the overall consumption in the PC market was led by telecom, banking and financial service sectors, education and BPO/IT-enabled services, and the e-governance initiatives of the Union and the state governments. The southward trend in pricing for all IT products continued during the year due to technology reasons and also due to intense competition.

Multinational brands accounted for 48% of the total desktop market in the review period, registering a growth of 33% over the same period last year. The proportion of Indian brands fell from 23% to 17% registering a year-on-year decline of 24%. Consumption of assembled PCs, the smaller and lesser known regional brands and unbranded systems witnessed a decline of 10%, with their market share falling from 40% to 35% of total desktop sales. Households, for the first time, contributed to 38% of the total desktop market registering a growth of 72% over first half of FY07.

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