PCs rock mkts, sales cross 5 mn units
PCs rock mkts, sales cross 5 mn units
Desktop PCs fetched a revenue of Rs 8,884 crore in 2005-06, an 18 per cent rise over 2004-05 revenues.

New Delhi: New Delhi: Reflecting the all-round buoyancy, personal computer sales grew by 32 per cent to cross the five million units in 2005-06 on the back of rising demand for notebooks and servers.

The PC market - desktops and notebooks included - grossed 5.04 million units registering a growth of 32 per cent over the last fiscal. Desktop sales crossed 4.6 million (46 lakh) units registering an annual growth of 27 per cent, while notebooks shipments exceeded 0.43 million units growing 144 per cent over 2004-05, Industry body Manufacturers Association of Information Technology (MAIT) said on Thursday.

Desktop PCs fetched a revenue of Rs 8,884 crore in 2005-06, an 18 per cent rise over the FY'05 revenues, while notebooks earned a revenue of Rs 2,027 crore, an increase of 107 per cent and in case of servers, which garnered revenues of Rs 1,545 crore, the rise was 69 per cent.

With sound macroeconomic conditions and buoyant buying sentiment in the market, desktop sales are expected to cross 5.6 million units in Fiscal 2006-07, while overall PC shipments would exceed 6 million units.

Notebooks witnessed the highest growth among all product categories. In 2005-06, notebook sales more than doubled to 0.43 million units. Households accounted for 13 per cent of the market, which is a growth of 115 per cent. Consumption of notebooks in the small-sized enterprises grew by 248 per cent, accounting for 31 per cent of the sales to business segment.

The server market registered an impressive growth of 81 per cent with over 89,000 units of server shipments.

The proportion of the assembled PCs - the lesser known regional brands and unbranded systems - reduced from 41 per cent of the total PC sales in 2004-05 to 37 per cent in 2005-06, however, in absolute terms they registered a growth of 14 per cent.

Aggressive pricing from branded players cannibalised the market for assembled PCs. Proportion of the Indian brands grew from 24 per cent in 2004-05 to 28 per cent, registering a growth of 48 per cent. The market share of the MNCs remained static at 35 per cent. However, they registered an annual growth of 27 per cent.

PC sales to the Business segment improved by 33 per cent accounting for 75 per cent of the total PC consumption.

Households, with sales growth of 12 per cent, accounted for 25 per cent of the market.

In terms of the Processor Configuration, PC sales in 2005-06 were dominated by 'P4', which accounted for 80 per cent of the market share, while alternative processors like AMD, Via, Cyrix accounted for another 17 per cent.

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Overall Printer sales grew by 28 per cent over that in FY'05. The sales of laser printers stood at 0.32 million units, growing 128 per cent over the last year.

Sales of the dot-matrix printer grew 18 per cent over 2004-05. Sales of inkjet printers grew by 13 per cent led by consumption in households and smaller cities. The growth projection for FY 2006-07 for overall printer sales is 23 per cent, with sales expected to cross 1.8 million units.

The four metros accounted for 33 per cent of the total PCs purchased. While the proportion of sales in the metros decreased, as against 38 per cent in 2004-05, the sales in absolute terms increased by 10 per cent.

In the Networking market, sales of modems dropped by 23 per cent. Sales of Network Interface Cards (NICs) grew by 102 per cent and that for Hubs by 27 per cent. The UPS market grew by 27 per cent over 2004-05. Consumption of Monitors surged to 4.63 million units with a growth of 27 per cent over the last financial year 2004-05.

The number of active Internet subscribers (entities) increased to 4.12 million in March 2006, while the figure was 3.12 million in March 2005.

The penetration of Internet in the top 22 cities was 45 per cent among businesses, while for households it was 12 per cent. The businesses segment now contributes 37 per cent of the total active Internet entities and households account for the remaining 63 per cent.

Dial-up remains the most commonly used means of accessing the Internet among businesses, although the proportion of Businesses using dial-up has dropped from 54 per cent in March 2005 to 38 per cent in March 2006.

The growth in PC sales can be attributed to significant consumption by Industry verticals such as telecom, banking and financial services, manufacturing, retail and BPO/IT-enabled services as well as major e-Governance initiatives of the central and state governments.

Significant consumption in the small and medium enterprises added to the industry numbers. Further, the trend of increased PC purchase in smaller towns and cities as witnessed in the previous years, continued undiminished, MAIT Executive Director Vinnie Mehta said.

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