PC sales up 36%; Indian brands score

New Delhi, Jan 5 | Updated: Jan 6 2006, 05:36am hrs
Driven by high corporate consumption and demand from small towns, the desktop PC sales grew 36% to 2.34 million units in the first half of the fiscal year 2005-06.

While small towns accounted for 55% of total sales, the share of top four metros dropped to 35% to 30%, said the Manufacturers Association Of Information Technology (MAIT) on Thursday.

The apex body representing the hardware, training and R&D services sectors of the IT industry also revised the sales projection in FY 05-06 to 4.7 million units from the earlier forecast of 4.25 million units. The high growth can be attributed to increased consumption by industry verticals such as telecom, banking & financial services, manufacturing, education, retail and BPO/IT-enabled services as well as major e-governance initiatives, said MAIT.

Together B and C class cities accounted for 70% of PC sales, registering a growth of over 44%, from last year.

While assembled PCs witnessed a decline in market share, accounting for 34% of the PC sales, the share of the Indian brands grew to 31%. MNC brands accounted for the rest at 35%. The household segment witnessed a decline of 5% registering sales of only 5.10 lakh units. The large enterprise segment dominated the market accounting for 55% of the total sales.

In terms of the processor configuration, P4 dominated, accounting for 81% of the market share. P3 accounted for only 2%. AMD, Cyrix and Celeron accounted for another 17%. The consumer desktop segment showed higher inclination towards low-cost processors.

In the operating system(OS) market on commercial desktops, Windows 95/98 accounted for 66% share, while only 2% used Linux. In case of servers, 5% used Linux, 6% worked on non-Windows based OS, 10% operated on Windows NT. 22% used Windows 95/98 and 26% had Windows-2000. India has 2.2 million business establishments in the 22 cities covered in the survey.

Notebook sales in the enterprise segment, in smaller towns, grew by a whopping 192% accounting for 37% of the total market. Sales of servers recorded a growth of 110% in class C cities and 87% in class B cities.

But hardware exports havent been able to pick up due to government bottlenecks. MAITs President Rajendra Kumar told FE: To boost IT manufacturing, government should provide assurance on infrastructure, incentives on IT manufacturing and enact policies that will significantly enhance PC and internet penetration in the country.