The Hindu Business Line : PC sales up 87% in Q3

PERSONAL Computer (PC) sales crossed eight lakh units during the October-December 2003 quarter, an impressive 87 per cent growth over the same period a year ago.

In terms of sequential growth over the last quarter, the rise is 31 per cent, Manufacturers' Association of Information Technology (MAIT) said on Thursday.

For the entire year, sales are projected to exceed 30 lakh units, taking PC penetration in the country to 11 per 1,000 population, the MAIT Executive Director, Mr Vinnie Mehta, told Business Line.

"We are confident that in the fiscal we will comfortably cross the three million (30 lakh) units, a growth of 30 per cent over 2002-03. The growth projection for the next financial year (2005-05) is healthy, and this may become still better by another 5-10 per cent should the Government reduce excise duty to 8 per cent and increase depreciation to 100 per cent on all IT products," Mr Mehta said.

According to MAIT projections, fourth quarter sales are expected to cross 9.3 lakh units.

For the third quarter, the assembled PC market accounted for 55 per cent of the sales. Indian brands cornered 15 per cent, while MNC brands accounted for the rest 30 per cent of the sales. The notebook PC market during the quarter recorded 105 per cent growth over the previous quarter with sales crossing 29,000 units.

MAIT said that till now corporates had been the main targeted buyers of notebook PCs. But lately household buyers were also growing due to declining prices that now match those of desktop PCs.

The server market showed buoyancy, crossing 16,600 units and registering a growth of 85 per cent over the previous quarter, MAIT said. The quarter also saw significant growth in sales of most peripherals. Laser printers grew 83 per cent, followed by Inkjet printer (57 per cent), and UPS 56 per cent, on a quarter-on-quarter basis.

Mr Mehta said that the net increase in the number of PCs during 2003-04 was pegged at 20 lakh, assuming a 10 per cent rate of obsolescence. "While the total PC base stood at 90 lakh at the end of the last financial, it would rise to 1.1 crore this year. The PC penetration works out to 11 per thousand by the end of 2003-04," Mr Mehta said.