PC Market Reboot: 26% Up @ 6.4 Lakh Units

New Delhi: | Updated: Sep 25 2003, 05:30am hrs
The personal computer (PC) market in India has grown by 26 per cent to 6.4 lakh units in the first quarter of the fiscal ending March 2004 from 5.08 lakh units in the same period last fiscal, according to a MAIT-IMRB study.

MAITs industry performance review conducted by IMRB (a market research firm) has upwardly revised the earlier projections of 12.1 lakh unit sales to 14.2 lakh units for the first half of this fiscal ending March 2004.

Seeing the good response in the first quarter, we expect the PC unit sales to exceed our earlier projection of 12.1 lakh units in the first half of this fiscal. Small and medium businesses, small towns, IT education sector, IT and ITES continue to drive the growth of PCs, MAIT executive director Vinnie Mehta told eFE.

Major e-governance and IT initiatives of the central and state governments are also driving IT consumption in the country apart from increased PC purchase in smaller towns and cities. Smaller towns accounted for 37 per cent of the total PC sales while the top four cities accounted for 46 per cent and the next four for 17 per cent.

Smaller towns accounted for a 17 per cent offtake in notebooks, 52 per cent in dot-matrix printers, 31 per cent in inkjet printers, 19 per cent in laser printers and 30 per cent of UPS sales.

According to the MAIT-IMRB study, the assembled PCs (lesser known regional brands and unbranded systems) accounted for 65 per cent of the PC sales, MNC brands accounted for 19 per cent of the market while the Indian brands accounted for 16 per cent in the first quarter. Aggressive pricing by the PC vendors has also helped improve PC penetration in the household and SME segments, according to the study.

The prices of PC units on an average have come down by 5 to 10 per cent over the last six months and this trend is expected to continue in coming months as well, he said.

In the printer segment, dot-matrix printers have been increasingly replaced by inkjet printers leading to a drop in sales by 13 per cent to 87,349 units from 99,833 units. Meanwhile, the sale of inkjet printers and laser printers have increased by 39 per cent and 60 per cent, respectively, according to the study.

In the household segment, reduced prices coupled with applications for entertainment and education have fuelled the market. MAIT has recommended bringing down all levies, especially excise duty from 16 per cent to 8 per cent in order to fuel the growth of PCs in the country.