Desktop sales estimated to cross 56 lakh

By agencies   |   Friday, 08 September 2006, 19:30 IST
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BANGALORE: Desktop sales again looked positive as per a report by Manufacturer’s Association for Information Technology (MAIT). The industry body has estimated sales to cross 56 lakh in fiscal 2006-07. This is an achievable figure considering the present status. The desktops and laptops taken together have already crossed 12 lakh units for the Quarter April-June of FY 2006-07. MAIT as the apex body represents the hardware, training and R&D services sectors of the IT industry in the country. The Industry Performance Review of MAIT is conducted bi-annually aiming to address the hardware sector’s efforts to manage the business environment, gauge market potential and consumer trends. Data for the study in this quarter (April-June 2006-07) was collected from major vendors and around 400 resellers/vendors in the top sixteen metros in India. The quarterly review covered the market size estimation for Desktop PCs, Notebooks, Servers and Peripherals such as Printers and uninterruptible power supply (UPS) systems. The Desktop market grossed 10.2 lakh (1.02 million) units in the first quarter of the fiscal, which is a decrease by 22 per cent from the previous quarter. But the good news is that it has shown a nine per cent growth year-on-year (y-o-y) as sales peak in the last Quarter of the financial year. As per the MAIT study, branded PCs segment showed more preference than assembled PCs - the smaller, lesser known, regional brands and unbranded systems. Branded PC’s accounted for 40 per cent of the PC sales in the first quarter. Multinational brands captured 36 percent of the market while the remaining 24 percent was acquired by Indian brands. Some significant buying and usage patterns were noticed as per the study conducted. The households market had again become profitable compared to the earlier slowdown. In the business segment it was primarily the Banks, Financial Institutions, Insurance companies, educational institutes, IT sector and IT related companies that were the lead consumers. Notebook sales touched 1.8 lakh units recording 125 percent y-o-y growth, which is attributed to the drop in notebook prices and additional benefit of mobility & space management. The Server consumption with increased investments in Corporates, especially manufacturing and retail, is likely to see more growth in the future quarters. In the printer segment, the report states consumption of laser printers grew by 65 per cent, inkjet by 12 per cent, while sales of dot-matrix printer dipped by 7 per cent. "India is very high on the agenda of several leading global IT manufacturers today. The Government is keen to promote IT/electronics manufacturing in India evident by the fact that it will soon unveil policies to encourage hardware manufacturing and consumption,” commented Vinnie Mehta, Executive Director, MAIT on the findings of the study. Mehta further added that industry expectations are high as these policies will play a critical role in attracting high-capital intensive manufacturers such as semiconductors, LCDs, storage devices etc. and spread IT consumption in the country as well.