Over 65 lakh PCs sold in 2007

New Delhi

March 3rd, 2008

The India client personal computer (notebooks and desktops combined) market
crossed yet another milestone to ship nearly 6.5 million PCs in a calendar year,
thereby recording 20 percent YoY growth in unit shipments (compared to 5.4
million units in CY2006). This was reported by CyberMedia India subsidiary, IDC
India as one of the key results of the India Quarterly PC Tracker, Q4 2007,
February 2008 release.

Commenting on these findings, Kapil Dev Singh, Country Manager, IDC India
said, "In CY2007 notebook PC shipments accounted for over a fourth of the
total Client PC shipments. This healthy trend points to the maturing of the
Indian IT market and shift into a new phase of growth-Growth Phase 2.0."

"The notebook PC shipments touching 1.8 million units (as against 0.98
million in CY2006), reinforces the increasing acceptance of laptops as the
preferred choice for a large number first time PC buyers," Singh added.

In the overall client PC market HP retained the top spot with a marketshare
of 21 percent, followed by HCL at 13 percent, and Lenovo at 10 percent in terms
of unit shipments.

In the total desktop PC market, HP retained the top spot with HCL a close
second. Lenovo was placed in the third spot. In terms of commercial desktop PC
shipments HCL led the market followed by HP and Lenovo. In terms of consumer
desktop PC shipments HP led the market in CY2007 followed by HCL and LG
Electronics.

In the total notebook PC market HP retained the top spot with a market share
of 37 percent in CY2007 in terms of unit shipments. Lenovo and Acer were at
second and third spots with marketshares of 16 percent and 10 percent,
respectively.

Key market highlights of '07:

· Notebook PCs become mainstream: Notebook PC shipments accounted for more
than 27 percent of the total India client PC shipments for the first time in a
calendar year

· Supportive ecosystem needed: Urgent need to encourage development and
widespread adoption of the 3Cs of Communication, Convergence and Content to spur
future growth

Notebook PC shipments

Notebook PC shipments accounted for 27 percent of the total India client PC
share in CY2007 as consumer client PC growth shot ahead of commercial PC
shipments growth in CY2007. According to Piyush Pushkal, Manager-PC Research,
IDC India, "With consumer desktop shipments reporting flat growth, the
higher overall growth of the consumer client PC segment signals maturing of the
market. The consumer PC category is transitioning from a desktop-centric to a
notebook-centric phase of growth."

Supportive ecosystem

IDC believes that there is an urgent need to encourage development and
widespread adoption of the 3Cs of Communication, Convergence and Content to spur
future growth.

With portability being the prime driver for notebook PC sales, the market
witnessed launch of new notebook PC-type products featuring small screen sizes
at a sub-Rs 20,000 price point. The PC-type gadgets such as the Asus Eee PC and
HCL's MiLeapX incorporate an intuitive graphic user interface for simplicity and
ease of use. Many more such gadgets are expected in CY2008.

"These low-end notebook PC-type gadgets are not likely to increase PC
penetration in India in a significant manner. To increase PC penetration, the
ecosystem will need to offer more affordable Internet infrastructure, growing
number of local applications and Indian language content, e-commerce and
education. The PC-type gadgets are likely to function only as secondary
computing devices in existing PC owning households," Pushkal commented.

"It is not just product features but relevance of PCs in the lives of
ordinary citizens that needs to be addressed," Pushkal added.