Indian PC market grows over 22 percent in second quarter of 2007:IDC

Gurgaon

September 27th, 2007

During 2Q 2007 (Apr-Jun '07), the overall India client PC market grew 22.1
percent year-on-year (2Q 2007 over 2Q 2006) in terms of unit shipments. For the
same period (2Q 2007 over 2Q 2006), desktop PC shipments showed a growth of 11.3
percent, while notebook PC shipments showed a growth of 73.1 percent (2Q 2007
over 2Q 2006).

In the overall Client PC market (notebooks and desktops combined) the
rankings remained unchanged. HP retained the top spot with a market share of
22.2 percent, followed by HCL at 12.8 percent, and Lenovo at 10.3 percent, in
terms of unit shipments during the second quarter of calendar year 2007 (2Q
2007).

In terms of desktop PC shipments HP managed to regain its top position with a
market share of 16.7 percent, followed by HCL and Lenovo in second and third
spots, respectively during 2Q 2007. In terms of notebook PC shipments, HP
retained the top spot with a market share of 40.4 percent in 2Q 2007. Lenovo
came in at the second spot and Dell climbed up to take the third spot.

The key market trends witnessed during the April-June 2007 quarter, with a
likely long-term impact on the India client PC market are:

a) Notebook PC market momentum continued unabated. Brand value and service
capabilities to define future market leaders, while volume growth is expected to
help make notebook PCs more affordable.

b) Northern India garnered the lion's share of total client PC shipments
followed by the southern and western parts of the country. The eastern region
moved from a share of 7 percent in 2Q 2004 to a share of 11.6 percent of the
total India client PC market during 2Q 2007.

India Notebook PC market

The India notebook PC market sustained its robust growth as shipments
expanded 73.1 percent year-on-year (2Q 2007 over 2Q 2006). The consumer notebook
segment was extremely active in this quarter, increasing from 29 percent to 32
percent share of the total notebook PC shipments.

According to Piyush Pushkal, Manager, Computing Products Research, IDC India,
"Notebook PC purchases will be heavily influenced by 'brand value' and
service capabilities in the minds of customers, while economies of scale will
help vendors remain competitive and offer better price points going forward.
Consumers would benefit even further when local vendors gear up and compete with
the big, global players through a strategy of price, smart sourcing and product
innovation."

"SMB enterprises, Education and Consumer segments would continue to be
major drivers for the notebook PC category", Piyush further added.

Regional trends:

During 2Q 2007 growth of client PC shipments in northern India and southern
India was driven largely by shipments of notebook PCs. Due lack of large deals
in the BFSI and IT/ITeS segments during the quarter, shipments of commercial
desktop PC fell in the western region. Eastern India, starting on a low base,
witnessed significant traction of notebook PCs.

Along with the consumer segment, banking, financial services and education
sectors helped shipments in the eastern region to grow. With a lot of untapped
potential, Eastern India has a significant potential for future growth of the
India client PC market. In the total desktop PC market, HP was the leader in
three regions, while HCL was the leader in the fourth.