PC sales cross 73 lakh units: MAIT

MAIT announced the findings of its Industry Performance Review for fiscal
2007-08. The total PC sales between April 2007 and March 2008, with desktop
computers and notebooks taken together, were 73.4 lakh units, registering a
growth of 16 percent over the previous year. IT consumption in 2007-08 was led
by significant growth in notebook sales, which grew by 114 percent, while
purchases of desktop units grew by only a percentage. Western and southern India
recorded maximum growth in PC consumption at 39 percent each. PC sales are
projected to touch 85 lakh units in fiscal 2008-09.

Commenting on the findings of the study, Vinnie Mehta, Executive Director,
MAIT said, “Notebook consumption has driven the PC market in India in 2007-08.
With sales crossing a million units in the second-half of last fiscal, total
sales of notebooks in 2007-08 surpassed 18 lakh units growing 114 percent over
the last year. Today, notebooks account for a quarter of the total PC market in
the country, up from less than three percent four years ago.”

Mehta further added, “Although the sales to the large enterprises were less
than expected, the overall consumption in the PC market was led by telecom,
banking and financial service sectors, education and BPO/ITeS, and the
e-governance initiatives of the Union and the State governments. The southward
trend in pricing for all IT products continued during the year due to technology
reasons and also due to intense competition. Significant growth in the home
market and steady consumption in the small and medium enterprises sustained the
market in 2007-08.”

Western India followed by the South-led PC consumption accounting for 31
percent and 27 percent of the market respectively. Sales in both the West and
the South grew by 39 percent each over 2006-07. PC consumption in the East
increased by 10 percent accounting for 17 percent of the market, a reflection of
heightened IT activities in the region. The northern states witnessed a decline
of 13 percent in PC sales, they accounted for 25 percent of the market.

Emphasizing the need for robust internet infrastructure to boost the domestic
IT market, Mukul Singhal, President, MAIT added, “While the prices of PCs and
other access devices in India are one of the lowest in the world, to sustain the
domestic IT market, we need to strengthen our broadband infrastructure at a
rapid pace. This calls for an early resolution of the last mile and spectrum
allocation issues, without which we cannot have a virtuous cycle for domestic IT
consumption.”