After two consecutive years of decline, India's PC sales jumped 30 per cent during calendar 2010 underlining a strong year of recovery spurred by demand from consumer, large enterprises, small and medium enterprises as well as government buying.

The PC market (desktops and notebooks combined) growth stood at about 26 per cent during 2007 but then fell into the negative zone in 2008 and 2009 (decline of one per cent and five per cent, respectively), according to global research firm IDC.

Impressive year

For 2010, the PC sales were pegged at about 98.9 lakh units as compared to about 76 lakh units in the previous year.

“The year 2010 has been an impressive year of recovery for the India PC market after a dismal 2009. While consumers have been the main architects of this recovery, it has been ably supported by renewed buying sentiment displayed by the SMB and government segments,” Mr Sumanta Mukherjee, Lead PC Analyst at IDC India, said.

He further added that large businesses experienced a healthy appetite for PCs as the global economy began to stabilise, stimulated by the revival of the IT-BPO sector among others. “This trend triggered a fresh round of investments in IT infrastructure,” he pointed out.

During December quarter (Q4 of calendar 2010) the overall PC shipment touched 24.9 lakh units, up over 26 per cent over the period year ago. But on a sequential basis, it represented a drop of 11 per cent. Seasonally speaking, September quarter typically ends up being a strong quarter for PC shipments.

Within this, desktop PC sales accounted for 14.5 lakh units, growing almost 14 per cent over the year ago period. The notebooks market continued to see momentum with Q4 sales rising almost 49 per cent on year-on-year to touch 10.4 lakh units.

Interestingly, in the overall PC market (Notebooks and Desktops combined), HP has regained its leadership after two quarters with an enhanced market share of 17.3 per cent in total sales, while Dell (14.2 per cent) and Acer (11.5 per cent) took the second and third spots, respectively.

In effect, HP has taken over from Dell in the pecking order. Dell, in Q3 2010, had clinched a market share of 16.7 per cent (ahead of HP's 13.7 per cent) for this category, according to IDC figures.

Desktop category

In the desktop PC category, HP and HCL were almost tied for first position with market shares of 10.86 per cent and 10.78 per cent, respectively, in December quarter. In the notebook category, HP reclaimed its pole position with a market share of 26.2 per cent in the Q4 2010; Dell and Acer were at second and third spots, respectively.

“High inflation and low industrial growth rates failed to dampen the PC market in the fourth quarter of 2010,” said Mr Anirban Banerjee, Associate Vice-President - Research of IDC India.

IDC said that sales of Atom processor-based mini notebook PCs is likely to come under increasing pressure, as competitive offerings of rivals become available in March 2011. “Emergence of media tablets will also impact this category in the long run,” Mr Mukherjee pointed out.

>moumita@thehindu.co.in

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