PC Sales Cross 73 Lakh Units

MAIT announced the findings of its Industry Performance Review for fiscal
2007-08. The total PC sales between April 2007 and March 2008, with desktop
computers and notebooks taken together, were 7.34 million (73.4 lakh) units,
registering a growth of 16 percent over the previous year. IT consumption in
2007-08 was led by significant growth in notebook sales, which grew by 114
percent, while purchases of desktop units grew by only a percentage. Western and
southern India recorded maxi­mum growth in PC consumption at 39 percent each. PC
sales are projected to touch 8.5 million (85 lakh) units in fiscal 2008-09.

Commenting on the findings of the study, Vinnie Mehta, Executive Director,
MAIT said, “Notebook consumption has driven the PC market in India in 2007-08.
With sales crossing a million units in the second-half of last fiscal, total
sales of notebooks in 2007-08 surpassed 1.8 million (18 lakh) units growing 114
percent over the last year. Today, notebooks account for a quarter of the total
PC market in the country, up from less than three percent four years ago. With
shifting consumer-preference in favor of notebooks over the desktop, this
proportion will only get larger with time.”

PC sales are projected to touch 8.5 million (85 lakh) units in fiscal 2008-09

Mehta further added, “Although the sales to the large enterprises were less
than expected, the overall consum­ption in the PC market was led by telecom,
banking and financial service sectors, education and BPO/ITeS, and the
e-governance initiatives of the Union and the state governments. The southward
trend in pricing for all IT products continued during the year due to technology
reasons and also due to intense competition. Signi­ficant growth in the home
market and steady consumption in the small and medium enterprises sustained the
market in 2007-08.”

Western India followed by the South-led PC consumption accounting for 31
percent and 27 percent of the market, respectively. Sales in both the West and
the South grew by 39 percent each over 2006-07. PC consumption in the East
increased by 10 percent accoun­ting for 17 percent of the market, a reflection
of heightened IT activities in the region. The northern states witnessed a
decline of 13 percent in PC sales, they accounted for 25 percent of the market.

Emphasizing the need for robust internet infrastructure to boost the domestic
IT market, Mukul Singhal, President, MAIT added, “While the prices of PCs and
other access devices in India are one of the lowest in the world, to sustain the
domestic IT market, we need to strengthen our broadband infrastructure at a
rapid pace. This calls for an early resolution of the last mile and spectrum
allocation issues, without which we cannot have a virtuous cycle for domestic IT
consumption. A robust broad­band will usher in a slew of services, relevant
applications as also content in local languages which will create the necessary
pull-factor and further drive the IT products market.”

DQC News Bureau