Indian PC market grows 35% in Q3: Gartner

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DQC News Bureau
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The Indian market grew 35.1%, shipping more than 8,85,000 units in the third
quarter of 2004 according to Gartner. This includes desktops, notebooks and
servers. India's share in the APac region increased to 10.4% from 9.2% in the
previous quarter.

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Desktop shipment grew annually by 32% during this quarter while notebooks
registered 126% growth. This is in confirmation with growth trends observed
during the first half of 2004. Small and medium businesses and finance and
banking continue to be the growth drivers. "While the corporate market
continued to look healthy, top vendors are now seen to be aggressively targeting
the premium end of the consumer segment," said Vinod Nair,
Analyst-Computing Systems, Gartner India.

Commenting on the notebook market, Vinod said, "Local entrants are
expected to gain some marketshare in the short term with price-point advantages
over branded players, though quality of after-sales service will be highly
questionable."

With regards to future trends he commented, "Some telecom service
providers are now tapping avenues to bundle the desktop with Internet service
making it available at affordable monthly plans. If priced properly, this will
be a good move to increase desktop penetration and to grow the market in
India."

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India -
Top vendors Market Share for Q3 2004 (Units)

CompanyQ3
2004

Market Share (%)
Q3
2003

Market Share (%)
HP14.311
HCL12.19.1
IBM8.36.2
Dell3.83.5
Acer3.43.1
Others58.267.2
Note:
Data includes deskbased PCs, mobile PCs, and IA32 servers.
Source:
Gartner Dataquest (November 2004)

From a marketshare perspective, HP maintained top position with 14.3%
followed by HCL with 12.1% while IBM clocked 8.3% market share.

Meanwhile from an APac (excluding Japan) perspective, 8.5 million units of PC
were shipped in the third quarter 2004. This is an increase of 9.8% from the
same period one year ago, equivalent to 3.1% sequentially.

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All markets in the region performed positively, especially India, which grew
by 35%, compared to a year ago. Overall in the APac region, the professional
market grew 15.7% and the home market at 2.2%. Growth contributors in the
professional market came from India, South Korea, Malaysia, New Zealand and
Vietnam where seasonally it is the buying quarter.

Asia/Pacific
PC Unit Shipment Estimates, 3Q04 (in thousands)

Company3Q04

Shipments
3Q04
Market 

Shares
3Q03

Shipments
3Q03 Market

Shares
3Q03-3Q04

Growth
Lenovo1,017.1011.90%745.89.60%36.40%
HP861.810.10%716.29.20%20.30%
IBM6727.90%5106.60%31.80%
Dell616.87.20%473.16.10%30.40%
Founder
Electronics
397.54.70%218.42.80%82.00%
Others4,951.5058.10%5,094.0065.70%-2.80%
Total8,516.70100.00%7,757.60100.00%9.80%
Note:
Data includes deskbased PCs, mobile PCs and x86-32 servers; IBM includes
LG-IBM
Source:
Gartner November 2004

Desk-based PC market year-over-year growth is 6.5% while mobile PC is at
26.1%. Demand for desk-based PCs was driven from emerging markets such as India,
Indonesia, Malaysia and Vietnam. In India, the small shipment base of mobile PC
coupled with strong demand propelled growth rates of over 100%.

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