PCs-the great enabler
Increased IT adoption on account of a plethora of e-governance initiatives, both central and state, lower prices and rising demand from B and C class cities are some of the factors that are boosting PC sales. By Faiz Askari
The emergence of the SMB segment and the rapid growth of the PC market in class D and E cities were two talking points in 2006. The affordability of computers and the resultant boom in PC adoption has been the biggest change in the Indian PC market in recent times.
Princy Bhatnagar, GM, Transaction Brand, Lenovo India Pvt Ltd says, “The market is growing rapidly. People are becoming more demanding. We have received an excellent response to the new features or technologies introduced by us in the last year—the Jog Dial, Face Recognition and Dolby Home Theater.”
"PCs are acting as entertainment centres with TV functionality, supported by the digital sound experience and large screen displays"
- Princy BhatnagarGM, Transaction BrandLenovo India Pvt Ltd
With the price differential between a branded PC and an assembled one dwindling, brands have the edge now. Rajendra Kumar, Executive Vice President, HCL Infosystems Limited says, “The government’s policy on levies and duties has meant that organised players are able to offer PCs at a price that is comparable to PCs from local assemblers. In terms of content, the growing availability of broadband nationwide has also added thrust to the demand for PCs.”
Increased IT adoption on account of a plethora of e-governance initiatives, both central and state, lower prices and rising demand from B and C class cities are some of the factors that are boosting PC sales. By Faiz Askari
The emergence of the SMB segment and the rapid growth of the PC market in class D and E cities were two talking points in 2006. The affordability of computers and the resultant boom in PC adoption has been the biggest change in the Indian PC market in recent times.
Princy Bhatnagar, GM, Transaction Brand, Lenovo India Pvt Ltd says, “The market is growing rapidly. People are becoming more demanding. We have received an excellent response to the new features or technologies introduced by us in the last year—the Jog Dial, Face Recognition and Dolby Home Theater.”
"PCs are acting as entertainment centres with TV functionality, supported by the digital sound experience and large screen displays"
- Princy BhatnagarGM, Transaction BrandLenovo India Pvt Ltd
With the price differential between a branded PC and an assembled one dwindling, brands have the edge now. Rajendra Kumar, Executive Vice President, HCL Infosystems Limited says, “The government’s policy on levies and duties has meant that organised players are able to offer PCs at a price that is comparable to PCs from local assemblers. In terms of content, the growing availability of broadband nationwide has also added thrust to the demand for PCs.”
MAIT found that 2.96 million PCs and notebooks were sold between April and September 2006, 19 percent more than in the same period during the last fiscal. Consumption of desktops grew by 8 percent. PC sales are projected to cross 6.5 million units in fiscal 2006-07.
India has one of the lowest PC penetration rates in the world at 18 per 1,000. Rajan Anandan, Vice President & General Manager, Dell India says, “In comparison China has 61 per 1,000, Brazil 142 per 1,000 and Russia 155 per 1,000. Although the industry sold an estimated 5.8 Million PCs in 2006, the size of the market remains relatively small when compared to China’s 22 Million plus.”
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