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Crashing prices fuel demand for laptops

Our Bureau

Cheaper by 11 pc; shipment grows by 104%

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Bharat Matrimony

New Delhi Feb. 26 The falling prices of laptops have led to a sharp surge in demand, especially from the education and the retail segments.

The prices of the notebooks dropped 11 per cent during the calendar year 2006 against the previous year, posting 104 per cent growth with shipment of about one million unit.

On the other hand, the desktop PC prices that rose by by 3 per cent year-on-year, reported a 15 per cent growth. The Indian PC market crossed 5 million shipments registering a 25 per cent annual growth in unit shipments during 2006, according to IDC India's report for the fourth quarter ended February 2007.

Market Share

"With the falling prices of notebook PCs and increasing culture of mobility, the market witnessed a significant shift of consumer demand, with commercial desktop customers opting for notebook PCs instead," said Mr Piyush Pushkal, Manager, PC Research, IDC India.

In the overall PC market rankings that include notebooks and desktops, HP continues to retain the top slot with a market share of 21 per cent, followed by HCL at 14 per cent and Lenovo at 9 per cent in terms of unit shipments.

In the desktop PC market also the first three places were taken up by HP, HCL and Lenovo respectively.

In the commercial desktop PC shipments, HCL and HP jointly shared the top position in 2006, followed by Lenovo; whereas, in total consumer desktop PC shipments, HP remained dominant followed by HCL and LG Electronics.

PC Shipments

Out of the total notebook PC market, while HP retained the top spot in unit shipments with a market share of 38 per cent in 2006, Lenovo and Toshiba came second and third with a market share of 17 per cent and 10 per cent respectively.

"The 5 million PC shipments and 25 per cent growth of the Indian PC market indicate the maturity it has attained. The market is characterised by the emergence of clear-cut segments, vendors running segment specific marketing programmes and the market ceasing to be just price-driven. The future of the PC market depends on how quickly and strongly new need drivers evolve," said Mr Kapil Dev Singh, Country Manager, IDC India.

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