PC sales cross 9.21 lakh in Q3; buoyancy to continue

By SiliconIndia   |   Friday, 25 February 2005, 08:00 Hrs
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BANGALORE: The Desktop PC market grossed over 9.21 lakh units, a 14 percent year-on-year growth over the same quarter in the last fiscal. This is a sequential growth of 12 percent over the previous Quarter. With increased sales throughout the year and also, traditionally, the last Quarter accounting for maximum sales, the industry is expected to comfortably touch the four million mark in PC sales.

The buoyancy in PC sales can be attributed to increased consumption by traditional Industry verticals such as Telecom, Banking, Financial Services & Insurance, IT-enabled services manufacturing and the Government. Consumption also picked up in non-traditional sectors like education, retail outlets and self-employed professionals. The highly price sensitive segments of the market have responded very positively to the drop in prices, especially at the entry-level. This led to significant consumption in the small and medium enterprises and in the home market. Further, the trend of increased PC purchase in smaller towns and cities as witnessed last year, continues undiminished. Emergence of a strong replacement market was also one of the notable features in the quarter for 2004-05.
The findings were presented by MAIT, the apex body representing the hardware, training and R&D services sectors of the IT industry in the country.

The Assembled PCs – the smaller lesser known regional brands and unbranded systems, accounted for 43 percent of the PC sales in Q3. The Indian brands accounted for 23 percent of the market while the MNC brands accounted for the rest 34 percent. The aggressive pricing strategy of the organized sector led to drop in market share of assembled PCs from 55 percent in Q3.

The break-up of the market size indicates that the Top 4 cities still account for PC consumption. But the trend of smaller towns registering higher growth appears to continue during the third Quarter as well.

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