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Economic recovery drives IT hardware market in Q3: MAIT

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DQW Bureau
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href="https://www.dqweek.com/gvicl-and-mait-sign-moa-1">MAIT
has recently announced the
findings of its quarterly Industry Performance Review for the quarter
October-December (OND) of fiscal 2009-10. The total PC sales between
October and December 2009, with desktop computers, notebooks and
netbooks together, were 2 million (20 lakh) units, registering a
growth of 42 percent over the same period last fiscal. The sales of
desktops stood at 1.35 million (13.5 lakh) units, while netbooks and
notebooks taken together recorded a consumption of 0.66 million (6.6
lakh) units growing 27 percent and 90 percent respectively, on YoY
basis.

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Commenting on the industry's
performance, href="http://voicendata.ciol.com/content/news1/110022601.asp">Vinnie
Mehta, Executive Director, MAIT said, “The
impact of the global economic recession is now well behind us and the
IT hardware industry in India is once again on a growth path. All
segments of the IT hardware industry, computers, peripherals and
networking products recorded an impressive growth in the Q3 2009-10
over the same period last year. The corporate sector, which had
displayed significant caution in IT-spending over the past five
quarters, led the growth in consumption in the OND quarter. Among the
verticals, consumption in the IT market was led by telecom, banking,
education, SMEs, BPO/IT-enabled services and the e-governance
initiatives of the Center and the state government.” He added,
“Vibrancy in consumption in households and smaller towns was also
visible in this quarter. The industry is hopeful that the sales would
further improve in the fourth (January-March) quarter. Overall PC
sales for 2009-10 are expected to cross 7.3 million (73 lakh) units,
registering a seven percent annual growth.”

style="background: transparent none repeat scroll 0% 0%; -moz-background-clip: border; -moz-background-origin: padding; -moz-background-inline-policy: continuous;">MAIT's
Industry
Performance Review was conducted by a market research
firm, Indian Market Research Bureau (IMRB). It is a bi-annual
initiative 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 2009-10) involved data collation from the major
vendors and around 400 resellers/vendors in the top 16 metros in
India. The quarterly review covers the market size estimation for
desktop PCs, notebooks, servers and peripherals, printers and UPS.

According to the MAIT-IMRB study, the
assembled desktops, smaller lesser-known regional brands and
unbranded systems, accounted for 35 percent of the desktop sales in
Q3 2009-10, while the proportion of the branded desktops was 65
percent. MNC brands accounted for 52 percent of the market, while the
Indian brands accounted for 13 percent.

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With improving business sentiment and
to meet the demands of growing business, the establishment segment
invested in enhancement of their existing network capabilities and
modernization of their IT infrastructure leading to a 30 percent
growth in the servers deployment in Q3 2009-10 on a YoY basis. Over
27,000 units of servers were consumed in Q3 2009-10. Printers market
also bounced back in Q3 2009-10. Led by high sales in the
establishments segment, consumption of laser printers witnessed an
impressive growth of 70 percent.

Consumption of Dot Matrix printers
(DMP), on the back of robust institutional sales, grew by 13 percent
in OND 2009-10 compared to the same period last year.

Sales of Inkjet printers grew 17
percent in the OND 2009-10 quarter over that of the last year. While
households and small businesses have been the traditional drivers of
consumption of inkjet printers, the retail segment also emerged as a
significant consumer of the inkjet printers.

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With improved consumption in the
establishments and the households alike, the UPS market grew by 28
percent on an annual basis in the third quarter of 2009-10
registering 0.56 million (5.6 lakh) units in sales.



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Header: Bareilly IT market loses
Rs 5 core during curfew

Leader: While the situation is
getting back to normal, concern remains about the survival of small
dealers and resellers in the city


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Muntazir Abbas

Bareilly, March 17


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As the situation is coming back to
normal with relaxation in curfew in Bareilly, one of UP's premier IT
markets, the computer dealers are feeling uneasy due to backlog and
change in the purchasing pattern that seems to have come about.
Speaking about the situation, Gautam Saxena, President, Bareilly
Computer Dealers Welfare Association (BCDWA) said that the PC dealers
in the city have a backlog of 20 days. “There is a concern of
survival among the small dealers and resellers,” he added.

“We convened an association meet on
March 16 to discuss the condition. Now, we will be meeting with the
local administration to chalk out the strategy for the revival of the
PC market in Bareilly,” Saxena added. The association is also
planning to organize a mass awareness rally in order to send a
positive signal in the city. According to him, there are 70 dealers
in Bareilly who collectively have incurred a loss of around Rs 5
crore during the curfew. The curfew was imposed in trouble-hit areas
of the city where two communities clashed with each other and
indulged in arson following dispute over their respective religious
processions.

The Bareilly IT market earns nearly Rs
75 crore in revenue annually with a major presence of Ingram,
Redington and HCL. According to local sources in the city's IT
market, Compaq is one of the leading brands. Education and government
are the driving sectors in the sales of computers and peripherals.
About 25 percent of the association's members are in services market.


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