Low priced branded PCs effect sales of assembled PCs

New Delhi, July 2 (UNI) Facing stiff competition from low prices of branded Personal computers, sales of the usually preferred assembled PCs have dropped to 37 per cent of the total PC sales in 2005-06 as compared to 41 per cent in 2004-05, according to a report.

The analysis, presented by MAIT, an apex body of hardware vendors and conducted by Indian Market Research Bureau (IMRB) said agressive pricing from the branded players cannibalised the market for the assembled PCs.

The sales of Indian branded personal computers registered a growth of 28 per cent in 2005-06 as compared to 24 per cent last year, the report involving 25,000 face-to-face interviews with end-users spread over 22 cities added.

''Proportion of the Indian brands grew from 24 per cent in 2004-05 to 28 per cent, registering a growth of 48 per cent. The branded segment is giving a neck-to-neck competition to the unbranded and unorganised market,'' MAIT Executive Director Vinnie Mehta said.

However, the market share of MNC-manufactured systems remained constant at 35 per cent during the period, he added.

The branded PCs are mainly consumed by sectors providing telecom, banking and financial, BPO/IT-enabled services as well as major e-Governance initiatives of the Central and State governments.

The study also revealed that PC purchases in smaller towns increased by 35 per cent, accounting for 54 per cent of the total purchases.

The desktop sales crossed 46 lakh units registering an annual growth of 27 per cent, while the notebooks, popularly known as laptops, exceeded 4.3 lakh units growing at 144 per cent over 2004-05.

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