Indian PC market posts 24 percent growth: IDC

The third quarter of 2006 recorded an impressive growth in terms of unit
shipments-the Indian Client PC market grew 24 percent over Q3 2005, to exceed
the 1.4 million shipments-mark in a single quarter, according to IDC's India
Quarterly PC Market Tracker, Q3 2006, November 2006 release.

“With the impact of Intel chip price cuts getting clearer, the SMB segment
registered a strong double-digit YoY growth in PC shipments. The festive season
promotions kept the growth momentum going for consumer segment. These market
trends were further provided a boost due to a spurt in the shipments of notebook
PCs to the education segment in Q3 2006 vis-à-vis Q3 2005,” said Piyush Pushkal,
Assistant Manager-PC Research, IDC India.

In the overall client PC market, the rankings remained unchanged-HP retained
the top slot with a market share of 21 percent, followed by HCL at 12 percent
and Lenovo at nine percent in terms of unit shipments.

In terms of total desktop PC shipments, HP led the market in the JAS quarter
of 2006 followed by HCL and Lenovo. HP retained the top slot followed by HCL and
LG at second and third spots, respectively. The commercial desktop PC market
witnessed an 18 percent sequential growth and a 24 percent YoY growth in unit
shipment terms. In this market too HP led the ranks followed by HCL and Lenovo.

The notebook PC market continued its growth momentum during Q3 2006. The
notebook market registered a 79 percent YoY growth during JAS 2006 thanks to
buoyant buying by the education segment.

The consumer notebook PC category witnessed an 18 percent sequential growth
and a 137 percent YoY growth. In terms of total notebook PC shipments, HP
retained the top slot with a market share of 41 percent in JAS 2006. “The
commercial desktop PC market moved beyond analyst expectations, as the channel
business for 'white box' machines revived as a result of huge marketing spends
targeting the channel partners and through them the growing base of SMB users.
Shipments of commercial desktop PCs to the SMB segment grew 46 percent YoY (Q3
2006 over Q3 2005),” said Pushkal.

“As many higher education institutions moved aggressively towards
implementing Wi-Fi in their campuses. The education segment in the notebook PC
market as a whole witnessed a massive growth of 357 percent YoY (Q3 2006 over Q3
2005) in terms of unit shipments.”

“The SMB segment in the notebook PC market as a whole witnessed a massive
growth of 51 percent YoY (Q3 2006 over Q3 2005) in terms of unit shipments. The
bundling offer of a data card with notebook PCs has also created a positive
impact in the market. Large corporate users as well as SOHO users have an added
reason to buy a notebook PC or 'upgrade' from a desktop to a notebook,” Pushkal
added.