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Notebooks drive PC market in H1

MNCs improve market share at the expense of local cos

Our Bureau

New Delhi, Feb. 5 Multinational companies garnered a 48- per cent of the Indian personal computer (PC) market, reporting a growth of 33 per cent during the first half of the financial year 2007-08 (April-September) as against domestic companies whose share dropped to 17 per cent from 23 per cent, registering a year-on-year decline of 24 per cent.

According to the biannual report released by the IT hardware apex body, the Manufacturers’ Association for Information Technology, consumption of assembled PCs, smaller and lesser known regional brands and unbranded systems also witnessed a decline of 10 per cent, with their market share falling from 40 to 35 per cent of total desktop sales.

Sales patterns

MAIT estimates that PC sales registered a 11-per cent growth in the first half at 3.28 million units.

“PC sales are projected to cross 7.25 million units in 2007-08, given the strong macro-economic conditions and steady buying sentiment in the market,” said the association in a statement.

Fuelled by demand from various industry verticals, notebook sales grew by 59 per cent, ahead of desktops that reported a 3-per cent increase in sales.

“Notebooks emerged as a significant driver for the PC market . Sales of notebooks surpassed 0.68 million units, accounting for 21 per cent of the total PC market in the country as compared to a less than 3 per cent share of the PC market it had four years ago,” noted Mr Vinie Mehta, MAIT Executive Director.

“Although sales to large enterprises were less than expected, especially that of desktops, the overall consumption in the PC market was led by telecom, banking and financial service sectors, education and BPO/IT-enabled services, and the e-governance initiatives of the Union and State Governments. The southward trend in IT products’ pricing continued during the year due to technological reasons and intense competition,” he said.

Sectoral consumption

The report stated that household consumption contributed to 38 per cent of the total desktop market, registering a growth of 72 per cent over H1 2006-07.

However, consumption in the business segment recorded a 17 per cent drop in desktop sales at 62 per cent, as against 77 per cent in the same period last year.

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