Indias PC market to witness flat growth in 2009: Gartner survey

Written by fe Bureau | Mumbai | Updated: Jun 27 2009, 03:06am hrs
Gartners recent survey predicts that the Indian PC market will be flat in 2009, witnessing a decline of 0.8% from 2008, which is an upward revision from its earlier projection made in February 2009 of 3.7% decline.

According to sources, India PC market shipments was flat in CY 2008 at 7.98 million units. Gartner predicts, a worldwide PC shipment is likely to reach 274 million units in 2009, a 6% decline from 2008 shipments of 292 million.

Gartner now expects the PC market to post positive growth in the fourth quarter of 2009, setting the stage for a healthy market recovery in 2010 with units forecast to grow 10.3%.

Gartners latest forecast is more positive than its preliminary forecast from mid-May, which anticipated a 6.6% unit decline in 2009, and considerably stronger than its last detailed forecast from March, which projected a 9.2% unit decline.

However, analysts are still wary to say that the worst is over and the market is recovering.

PC unit growth was stronger than we expected in all markets but Eastern Europe in the first quarter of 2009. In particular, consumer shipments were much stronger than we anticipated, said George Shiffler, research director at Gartner in a press release.

However, professional shipments continued to struggle, he added.

The rate of decline in PC sales globally has been slowed due to the continuing popularity of mini-notebooks, with units on target to reach 21 million this year and 30 million in 2010, said Gartner.

Mobile-PC shipments are set to reach 149 million units in 2009, a 4.1% increase from 2008, but spending on mobile PCs is expected to decline 12.8% as mobile-PC average selling prices continue to drop at an unprecedented rate, the analyst firm added.

However, mini-notebook units posted their first quarter-over-quarter decline in the first quarter of 2009, said Shiffler.

Gartner analysts said the impact of Windows 7s release in October on the PC market is likely to be very modest.

Although the buzz surrounding Windows 7 has generally been quite positive, we dont expect the market to significantly deviate from its normal seasonal trends in reaction to its release, said Shiffler.