Economic recovery drives IT hardware market in Q3: MAIT

DQW Bureau
New Update



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



Commenting on the industry's

performance, href="">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


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.


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.


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.


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


Muntazir Abbas

Bareilly, March 17


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


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.