PC sales to cross 6.5 mln units in 2006-07

New Delhi, Jan 31: Personal Computer sales are poised to cross 6.5 million units in fiscal 2007, with the numbers already exceeding 2.96 million units during the first sixth months between April-September 2006, registering a growth of 19 per cent over the corresponding period.

During the second quarter ending September '06, total PC sales with desktop computers and notebooks taken together were 1.75 million units, rising by 46 per cent over the previous quarter and 19 per cent year-on-year.

Of this, desktop sales were 1.5 million units with 48 per cent growth while notebook sales totalled 0.25 million units showing an increase of 38 per cent over the same quarter last year, according to figures released by Manufacturers Association for Information Technology (MAIT) here today.

The hardware industry association said the multi-national branch accounted for 37 per cent of the total desktop market in H1, a growth of 14 per cent over the same period last year.

The proportion of Indian brands fell from 31 per cent to 23 per cent registering a year on year decline of 23 per cent.

MAIT Executive Director Vinnie Mehta told newspersons, ''Domestic demand is likely to gain tremendous momentum in 2007, which has been declared the year of broadband. The industry is also eagerly waiting the long overdue policy for the manufacture of IT and electronics products.'' He added the above two policies could play a critical role in boosting highly capital-intensive activities like the manufacture of semiconductors, LCDs, storage devices in the country.'' Stressing the need for a stable policy regime, MAIT President Mukul Singhal urged the Government to maintain its stand on excise duty on PCs at 12 per cent and 16 per cent on other peripherals in the forthcoming Budget.

He opined that IT products should attract the same rate of Value Added Tax (VAT), though a state subject, across the country.

''The VAT should be restored at the four per cent level while the Central State Tax (CST) must be abolished immediately,'' he said.

The unorganised segment, which comprises of assembled pieces in the lesser known regional brands and unbranded systems witnessed a growth of over 27 per cent in unit sales and an increase in market share, accounting for 40 per cent of total PC sales in H1 up from earlier 34 per cent, the apex body said.

UNI