Replacement Purchases Increase
Techtree News Staff, Feb 27, 2005 0000 hrs IST
The quarterly review of PC purchases show replacement demand contributing notably to the growth of the overall PC market.
According to the Manufacturers Association for Information Technology (MAIT)'s Industry Performance Review for October-December of 2004-05, replacement demand contributed significantly to the growth of the PC market. New technology and new features, applications better suited to run on latest machines combined with aggressive pricing are driving the replacement market, it said.
The desktop PC market grossed over 9.21 lakh units, a 14 percent year-on-year growth over the same quarter in the 2003-04 financial year. This is a growth of 12 percent over the previous quarter of July-September. With increased sales throughout the year and also, traditionally, the last quarter accounting for maximum sales, the total number of PC purchases is expected to comfortably touch the 40 lakh mark in PC sales.
Assembled PCs accounted for 43 percent of the PC sales in the last three months of the calendar 2004 year. Indian brands accounted for 23 percent while the MNC brands accounted for the rest 34 percent. The aggressive pricing strategy of the organized sector led to drop in market share of assembled PCs from 55 percent reported for the October-December 2003 quarter to the current figure.
The break-up of the market size indicates that the top 4 cities still accounted for maximum PC consumption. But the trend of smaller towns registering higher growth appears to continue during the third quarter as well.
The notebook market witnessed a 47 percent growth over the last quarter scaling 64,707 units. This was led by drop in notebook prices. The corporate has always been the major target segment for the notebooks, but with the reduction in prices of notebooks and their prices matching those of the desktop PCs in many cases, notebooks are also finding place in the household.
Vinnie Mehta, executive director, MAIT said, "Reduction in prices of IT products is driving the market in India, however to achieve global levels of consumption, the domestic market needs to grow at a much accelerated pace. Therefore, for the forthcoming Union Budget we have recommended that the Excise duty be reduced on all IT products from 16 percent to a uniform 8 percent. This will help the industry drop prices."
MAITÂ’s quarterly study for October-December 2004 involved data collation from five major PC companies and 405 dealers/manufacturers across 16 metros in India.
Related News:
Assembled PC Sales Slow: MAIT
Low PC Prices Benefit Home Users
USER COMMENTS
assembled is the better choice in gettng a pc but nowadays the indian pc providers are bringing out competitive prices...jineesh i dont think there is a 16inch monitor...
by tranecsport, mysore, on Feb 28, 2005 12:21 PM, Report abuse Reply
lg is a very good company i trust you's product.Now i want a price list of your computer 15 inch,16,17 etc and have any discount that should be give to me .Because i want to by an lg computer
by jineesh, delhi, on Feb 28, 2005 12:17 PM, Report abuse Reply
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jineesh buy a 17 inch CRT u will get only 16 inch viewable area anyhow :D. and buy a 17inch LCd for true 17 inch :D
by Pallav Suri, New Delhi, on Feb 28, 2005 02:35 PM, Report abuse Reply