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PC shipments up at 4.3 million units in `05: IDC
HP retains top slot with 17 per cent market share

Our Bureau

New Delhi , Feb. 18

THE Indian PC market including desktops and notebooks witnessed a 26 per cent year-on-year growth in shipments during 2005 to clock 4.3 million units, according to IDC.

In the overall client PC (notebooks and desktops) market, HP retained the top slot with a market share of 17 per cent, followed by HCL at 13 per cent, and Lenovo at seven per cent in terms of unit shipments.

HCL - which does not manufacture notebooks — led the Indian market in terms of total desktop shipments, while HP was the top vendor for notebook PC market.

"Players like Acer, HCL, HP, Lenovo and Zenith signed up new channel partners in upcountry markets besides launching `branded' retail stores in the major metro cities," said Mr Piyush Pushkal, Senior Analyst, PC Research, IDC India. The sector also witnessed sustained growth in commercial desktop shipments. "Government along with the IT services and financial services sectors were the prominent buyers contributing to the growth in the commercial desktops segment during 2005," IDC said.

The commercial desktops category witnessed a 14 per cent year-on-year growth with HCL maintaining the top rank in terms of unit shipments, followed by HP and Lenovo. Apart from large enterprises, the Small and Medium Business segment also contributed to a significant portion of shipments in the category.

Sub-Rs 10,000 PCs: Commenting on the introduction of `sub-Rs 10,000' PCs in the Indian market, IDC claimed that its data revealed that the `sub-Rs 10,000' PCs actually reached the customer premises at a landed cost of `sub-Rs 13,000' after adding taxes, freight and handling.

Moreover, with the entry level PCs usually sporting very basic features, buyers — at the point of final decision — tend to migrate to the next higher configuration, keeping in mind the life of the machine and technological obsolescence.

"Nevertheless, the news coverage surrounding the introduction of `sub-Rs 10,000' PCs will definitely help to expand the consumer base for PCs, by bringing in more middle-income families into the ambit of those considering a PC purchase for their homes. However, much remains to be done by the entire IT community to boost the relevance of owning a PC for a middle class Indian home," IDC said.

Riding on these sentiments the consumer desktop category witnessed a 29 per cent year-on-year growth in unit shipments in 2005. HCL led this category over HP, with LG following the market leaders at the third slot.

"The notebook PC market took another great leap in India during 2005. The change in the customs duty structure resulted in overall prices dropping considerably. This generated greater demand for the form factor. Coupled with aggressive marketing by vendors, the notebook PC segment as a whole witnessed a massive growth of 148 per cent year-on-year, recording landmark sales of 4,74,000 shipments," it said.

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PC shipments up at 4.3 million units in `05: IDC
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