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February 10, 2010

Indian PC sales marginally up in first-half of 2009-10

Notebook sales up 43% to 1.1 million units

By CBR Staff Writer

Total Indian PC sales for the first half of the financial year 2009-10, with desktop computers, notebooks and netbooks taken together, was 3.71 million units, up marginally by 1% from the same period last fiscal, according to India’s IT hardware apex body MAIT.

Given the current macro-economic conditions and conservative buying sentiment in the market, the study found that the PC sales are expected to cross 7.3 million units for the full fiscal year 2009-10, with an increase of 7%.

During the period between April and September 2009, desktops sales declined by 11% from previous year to 2.61 million units. Notebooks and netbooks taken together recorded a consumption of 1.1 million units, growing 43% over the same period last year.

According to MAIT, the desktop sales were down mainly due to the decline in business segment by 32%, accounting for 53% of the total desktop sales. Large and small enterprises sales declined by 54% and 14%, respectively. In medium enterprises, sales increased by 10%.

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Notebook consumption for the first half of fiscal was 1.1 million units, an increase of 43% over H1/2008-09. Medium enterprises grew 7% compared to same period last year. The small establishments recorded a growth of 16%, while sales to the large establishments grew 113%, which accounted by 74% of the total notebooks consumption in the establishments.

According to the report, servers sales declined 34% to 48,110 units, over the first-half of the last financial year. Sales to larger enterprises declined 70% while sales in small and medium enterprises declined 19% and 3%, respectively. The SMEs accounted for 82% of the total market for servers, while the larger enterprises for the rest 18%.

In the peripherals market, printer sales were 0.62 million units, down 12% from the same period last year. The UPS market grew 104% with 1.58 million units. The number of active internet entities increased to 9.4 million units in September 2009, from 7.61 million units in September 2008, with number of internet users exceeding 70 millions in the country.

Vinnie Mehta, executive director of MAIT, said: “Although the sales growth was subdued in the enterprises, the overall consumption in the PC market was led by telecom, banking and financial service sectors, education and households segment.

“Verticals such as BPO/IT-enabled services, retail and the government, which traditionally account for significant proportion of the IT market, were very conservative in their IT spends in H1/2009-10.”

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