Financial Daily from THE HINDU group of publications
Wednesday, Jul 07, 2004
MAIT sees computer sales rising 27 pc
Mr Vinnie Mehta, Executive Director, MAIT (right) with Mr Bhupendra Mathur, Senior Vice-President & Executive Director, IMRB International, at a press conference in the Capital on Tuesday. - - Kamal Narang
New Delhi , July 6
BUOYED by price cuts and increased demand from households and businesses, personal computer sales touched 3.03 million units in 2003-04, a growth of 32 per cent over the previous year.
With sound macroeconomic condition and strong buying sentiment in the market, PC sales are expected to cross 3.8 million units in 2004-05, representing a growth of about 27 per cent, according to the industry performance review by Manufacturers' Association for Information Technology (MAIT).
"The high growth in PC sales can be attributed, on one hand, to increased purchases by industry verticals such as telecom, banking and financial services, manufacturing, retail and BPO/IT enabled services as well as major e-governance initiatives of the Central and State Governments.
On the other hand, the highly price-sensitive Indian market responded like never before to the drop in prices, especially at the entry-level," Mr Vinnie Mehta, Executive Director of MAIT, said at a news conference here.
PC sales in the first half of 2003-04 was 1.26 million units, while in the second half it stood at 1.77 million units, taking the total sales during the year to 3.03 million units.
However, the growth of 32 per cent recorded in 2003-04, is lower than 37 per cent growth witnessed in 2002-03.
According to MAIT, the number of active Internet subscriber entities (both households and companies) increased to 2.36 million in March, while the figure was 1.43 million in March 2003, while dial-up connectivity remained the most commonly used means of accessing the internet.
The penetration of Internet among businesses was 48 per cent while that in households was 11 per cent.
The domestic computer hardware market, including PCs, stood at $5 billion in 2003-04 (about Rs 23,000 crore) against $4 billion in the previous year. Hardware exports grew marginally to $1.25 billion from $1.1 billion in 2002-03.
A highlight of the findings was that market share of Indian brands declined to 21 per cent during 2003-04 from 26 per cent earlier, even as the sales grew seven per cent. Sales of MNC brands grew by 23 per cent, although their market share shrunk by two per cent.
The beneficiary was the assembled PC segment whose market share increased to 53 per cent in 2003-04 from 46 per cent in previous year. Sales of the assembled PC segment grew 52 per cent.
MAIT's industry performance review was conducted by market research firm Indian Market Research Bureau (IMRB).
The review noted that PC sales to the business segment improved by 26 per cent accounting for 77 per cent of the total PC consumption.
Households, with sales growing by 60 per cent witnessed significant improvement in consumption compared to that in the last year. The consumption in home offices also grew by 71 per cent.
"Within businesses, sales to larger businesses (over 50 employees) grew by eight per cent; to medium business segments (between 10-50 employees) it grew by 56 per cent and that to small enterprises by 39 per cent," it said.
In terms of processor configuration, PC sales in 2003-04 were dominated by P4, which accounted for 73 per cent of the market share, followed by PIII accounting for 11 per cent while alternative processors like AMD, Citrix accounted for another 14 per cent.
In terms of operating system on desktop in establishments, 81 per cent of the establishments had Windows 95/98 while only two per cent had Linux.
Printer sales grew by 16 per cent during 2003-04 with the resurgence of dot matrix printers.
In the networking market modem sales improved by 57 per cent while that of NICs by 25 per cent. The UPS market also grew 39 per cent while the sales of monitors grew 17 per cent.
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