Crisis dents PC, peripherals consumption in FY08-09

Written by fe Bureau | Mumbai | Updated: Jul 31 2009, 05:31am hrs
The Manufacturers Association for Information Technology (MAIT) in its annual review for the IT peripherals industry for the FY 2008-09, reports PC and peripherals consumption in 2008-09 has been affected by the slowdown in the Indian economy, especially in the second half of the fiscal.

The body representing Indias IT hardware, training and R&D services sectors, has, however, said that with the economic situation gradually improving, overall printer consumption in FY2009-10 is expected to cross 1.74 million units, registering an 8% growth. However, sales of UPS are expected to remain flat.

According to MAITs findings, total printer sales between April 2008 and March 2009, were 1.61 million (16.1 lakh) units, registering a growth of 1% over the previous year. According to the study, sales of printers in the top four and the next four cities registered a decline of 9% and 31% respectively in 2008-09.

Though sales of ink-jet printer declined by 4% during the same period, the consumption of dot-matrix and laser-jet printer grew 5% and 7% respectively in FY 2008-09 over 2007-08. Smaller towns and cities outside of the top eight metros drove the printer consumption registering a growth of 6% accounting for three-fourths of the overall printer consumption in the country.

Consumption of UPS declined 6% over 2007-08 registering 1.51 million (15.1 lakh) units in sales. The households segment, which experienced a decline of 25%, pulled down the overall UPS sales to negative. Desktop sales in the households had declined 18% in FY2008-09 and consumption of UPS is highly correlated to desktop sales. In case of networking products, consumption of Network Interface Cards grew 3% while that of modems and hubs declined 44% and 35%, respectively.

Vinnie Mehta, executive director, MAIT said, Consumer sentiment was subdued due to uncertainty in the economy in 2008-09 which impacted the consumption of IT in the country.