Vizag sees a boom in PC sales

Vizag (Visakhapatnam) is doing brisk business in personal computers’

sphere. Over the last two months, the market has witnessed a sudden spurt in PC

sales, thanks to the growing home segment. According to local resellers, there

is more than 30 percent growth in PC sales in the last couple of months with

branded computers finding a good marketshare. However, the market is worried

whether the momentum will continue in the coming months or it is just a

temporary phenomena. Meanwhile, the change in government at the State level is

also concerning the market players as to how proactive the new government will

be in IT and related activities.

"Buoyed by the recent duty cuts and tax exemptions, the market is

reacting positively since PC prices have come down. Today, branded computers are

available for an unbelievable price and now, buyers prefer a branded product as

it gives peace of mind and satisfaction in terms of after sales service. Home

segment is the prime driver of the recent growth and we expect lot of

educational institution orders to come in the following months. Our company is

engaged in conducting regular roadshows to tap the business opportunity and our

PC sales have jumped by 50 percent in the last three months," said KV

Suresh Kumar, Director, Innovative Information Technology, a leading reseller in

the city selling only branded products like Compaq, HCL and IBM.

"Compaq Presario PCs are doing well compared to HP because of the low

price. However, we have to wait and see whether the latest trend of increased PC

buying will continue for long," said DL Vani, Sales Executive, Computer

Horizons, an exclusive partner for HP.

"Vizag is a market with a sales of 1,300 to 1,500 PCs every month.

Earlier, the branded ones constituted only 25-30 percent but now, in the last

two months, the sales has grabbed 40 percent marketshare and soon the ratio will

change with branded PCs outgrowing the assembled ones. Today, a premium brand

like HCL is available for Rs 17,650 and students are feeling PC is a must at

everyone’s home for educational purpose," said Anand Narla, Chief

Executive, Pioneer Marketing Corporation. When asked about whether the change of

government will in any way affect the market, he replied, "the economy is

doing well and buying power of the home segment has increased so it would not

affect the business".

Meanwhile, Vizag is growing as a corporate base and more new projects are

expected to drive the IT growth in the region. "Vizag has a right mix of

home, SOHO, SME, corporate and government segments. Recently, HSBC has announced

its major call center facility in Visakhapatnam employing over 2,000 candidates.

The first phase of the project has started and it will bring significant

business to the local market. Meanwhile, government orders are expected in the

next quarter and all segment are doing well here," said P Shriram, CEO,

Microcare Computers Pvt Ltd.

However, CH Surendra, Director of CA&S Solutions (P) Ltd, denied the

reports saying business is as usual. "We don’t see any change and in

fact, there were no corporate orders in April and this month. home segment is

also doing okay."

"There is growth but it is not more than 20 percent, for us. The home

segment may be doing well because of the summer vacation where most people would

like to spend on buying a PC to keep their children engaged in learning

activities. This year, there is a clear shift in buyers who prefer to buy

branded against the assembled PCs," said A Sreenivasa Rao, Director,

Meghana Systems. "Due to elections, many government orders were put on hold

and now, whether the new government will process these or not is the million

dollar question on everyone’s mind," he added.

S Gopikrishna


Chennai