India PC market records 25 per cent Y-o-Y growth

Mumbai, Feb 25 (UNI) In a year that witnessed all-round economic growth, the India Client Personal Computer (PC) market witnessed a 25 per cent year-on-year (Y-o-Y) growth in unit shipments (CY2006 over CY2005), according to a release by IDC's India Quarterly PC Tracker, 4Q 2006.

Commenting on these findings, Kapil Dev Singh, Country Manager, IDC India said, ''The 50 lakh PC shipments and 25 per cent growth of the Indian PC market indicate the maturity it has attained''. The future of the PC market depends on how quickly and strongly new need drivers evolve, he added.

In the overall Client PC (Notebooks and Desktops combined) market, the rankings remained unchanged. HP retained the top spot with a market share of 21 per cent, followed by HCL at 14 per cent and Lenovo at nine per cent in terms of unit shipments.

In the total desktop PC market, HP led the market last year followed by HCL and Lenovo. In terms of total commercial desktop PC shipments, HCL and HP jointly shared the number one position during the year followed by Lenovo.

In terms of total consumer desktop PC shipments, HP led the market followed by HCL and LG Electronics. In the total Notebook PC market alone, HP retained the top spot with a market share of 38 per cent in unit shipments. Lenovo and Toshiba were at second and third spots with market shares of 17 per cent and 10 per cent, respectively.

According to Piyush Pushkal, Manager, PC Research, IDC India , ''The year 2006 witnessed a three per cent growth in average selling values (ASVs) of desktops, thanks to increased adoption of LCD/TFT monitors and other accessories, by users seeking to future-proof their investments as well as experience enhanced functionality''.

In fact, as per the release, LCD/TFT monitor shipments grew more than 200 per cent on a yearly basis (2006 over 2005) for branded desktop PC players.

The notebook PC market continued the growth momentum during the year gone by. Coupled with aggressive marketing by vendors, the notebook PC segment as a whole witnessed a massive growth of 104 per cent year-on-year, touching a landmark of nearly 10 lakh unit shipments.

With the falling prices of notebook PCs and increasing culture of mobility, the market witnessed a significant shift of consumer and commercial desktop customers opting for notebook PCs instead, he said.

The Notebook PC market growth was contributed in large measure by the buoyant Education segment buying, individual consumer/SOHO purchases and increased traction from the SMB segment. With higher education institutes such as Engineering Colleges and Management Schools aggressively adopting the concept of Wi-Fi campuses and usage of notebook PCs in their learning tools and methodologies, a healthy surge in shipments was seen.

The current year is also expected to be the year when overall PC shipments through retail outlets, especially the Notebook PC form factor would see a higher traction, says the release. The year will see IT vendors trying out many new approaches and go-to-market strategies for product retailing. The efforts will focus on wooing SOHO and individual/home customers for converting them into impromptu buyers. Experimentations will also be seen in retail formats, in-store and on-site promotions, product bundling, and alternate payment options.

IT retail outlets of HP, HCL Infosystems, Digi-Life stores and multi-brand IT product retail stores like Sahara's 'IT Junction' initiative, Pantaloon Retail's 'e-zone', Big Bazaar etc are already functional. Other big Indian retail players are expected to quickly follow suit, trying to reposition their offerings to customers by segmentation and a competitive approach, said Mr Pushkal.

UNI