2005 PC sales grew at 26 per cent: IDC

Our Corporate Bureau
20 February 2006

New Delhi: The Indian PC market witnessed a 26 per cent year-on-year sales growth in 2005 over 2004, according to IDC's preliminary release of India Quarterly PC Market Programme, 4Q 2005. In the overall notebooks and desktops market, the rankings remained unchanged - HP retained the top slot with a market share of 17 per cent, followed by HCL at 13 per cent, and Lenovo at 7 per cent in terms of unit shipments.

In terms of total desktop shipments HCL led the market, while in terms of total notebook PC shipments HP was the top vendor. However, four major trends were visible through the year:

Branded PC vendors increasing their channels reach and retail presence in the upcountry markets (B, C and D class cities and towns) and metros, respectively
On the commercial desktops front, all major vendors revealed an enhanced go-to-market spend on the SMB segment, which recorded a 21 per cent year-on-year growth in unit shipment terms
Introduction of ''sub-Rs10,000'' PCs in the Indian market and the resultant impact
A 148 per cent year-on-year growth in Notebook PC shipments

"Players like Acer, HCL, HP, Lenovo and Zenith signed up new channel partners in upcountry markets besides launching 'branded' retail stores in the major metro cities", said Piyush Pushkal, senior analyst, PC Research, IDC India.

Government along with the IT services and financial services sectors were the prominent buyers contributing to the growth in the commercial desktops segment during 2005. '

The commercial desktops category witnessed a 14 per cent year-on-year growth with HCL maintaining the top rank in terms of unit shipments, followed by HP and Lenovo. Apart from large enterprises, the Small and Medium Business segment also contributed to a significant portion of shipments in the category.

IDC data shows that the 'sub-Rs.10,000' PCs (as promoted by PC vendors) actually reach the customer premises at a landed cost of ''sub-Rs.13,000'' after adding taxes, freight and handling.
These 'sub-Rs13,000' PCs have not sold very large numbers since their launch in July-September 2005, contributing to just 2 per cent of total desktop shipments during the July-December 2005 period.