New Delhi; April 10, 2008: MAIT, the apex body representing the hardware,
training and R&D services sectors of the IT industry in the country, today
announced the findings of its Quarterly Industry Performance Review for the
quarter October-December (OND) of fiscal 2007-08. The total PC sales between
October and December 2007, with desktop computer and notebooks taken together,
were 1.75 million (17.5 lakh) units, registering a growth of 26 percent over the
same period last fiscal. The buoyant mood in IT consumption was led by
significant growth in notebook sales, which grew by 158 percent, while
consumption of desktops grew by 4 percent. Consumption of servers, laser
printers and UPS also witnessed robust growth. PC sales are projected to cross
7.25 million units in fiscal 2007-08 led by demand from the households and
various industry verticals.
Commenting on the industry performance, MAIT
Executive Director, Mr Vinnie Mehta said: "The third quarter was driven by increased
consumption in the household segment while industry verticals and corporate
sectors such as telecom, banking & financial services, manufacturing,
e-governance and IT-enabled services, experienced steady growth. The growth in
these verticals is expected to continue in the fourth quarter (JFM) of the
financial year. Apart from the traditional sectors, consumption was also
witnessed in SMEs, education, retail and other computer-centric small
enterprises. Aggressive pricing by the PC vendors has also helped improve the PC
penetration, especially in the households and the SME segments."
MAIT's Industry Performance Review - ITOPs,
conducted by the leading market research firm IMRB (Indian Market Research
Bureau), is bi-annual and aims to address the hardware sector's efforts to
manage the business environment, gauge the market potential and consumer trends.
The module to monitor the industry performance every quarter alternates with the
half-yearly review, using the supply side estimation model involving data
collection from the top IT vendors and leading channel players. This round of
the quarterly study (October-December 2007-08) involved data collation from the
major vendors and around 400 resellers/vendors in the top sixteen metros in
India. The quarterly review covers the market size estimation for desktop PCs,
notebooks, servers and peripherals - printers and UPS.
The Desktop market grossed 1.25 million (12.5 lakh) units in Q3/2007-08, a growth of 4 percent over Q3/2006-07. Although it is 7% lower than the sales in Q2/2007-08 (JAS) (sequential), sales are expected to be steady in the quarter January -March as IT sales peak in the last Quarter (JFM) of the financial year.
As
per the MAIT-IMRB study, the assembled desktops - the smaller lesser known
regional brands and unbranded systems, accounted for 32% of the PC sales in
Q3/2007-08, while the proportion of the branded desktops was 68%. MNC brands
accounted for 51% of the market while the Indian brands accounted for the rest
17%.
Chart 2: Quarterly Peripheral Sales - Q1/2006-07 to Q3/2007-08
The findings of the MAIT-IMRB
Quarterly Study for Q3/2007-08
are indicative of the following significant trends in buying and usage patterns:
Notebook sales crossed 500K units recording 158 percent growth over the third quarter in 2006-07. The high growth in notebook consumption can be attributed to the drop in notebook prices and the additional benefit of mobility & space management. Notebooks are increasingly finding their way into the homes, SMEs and the education sector. Several first-time PC buyers are now opting for notebooks rather than desktop. High consumption in corporates, IT companies, financial institutes and the government however continues to drive the Notebook consumption.