Laptop sales set to double next year

Laptop sales set to double next year

Author | Source: Business Standard | Tuesday, Dec 26,2006 9:11 AM

Laptop sales set to double next year

Over the last 12-18 months laptops have become a part of the personal gadget requirements of the youth, giving the much required impetus to the notebook market which is now doubling in size.

Desktops account for 80 per cent of the total personal computer market as compared to 20 per cent of laptops. “The latter will grow at over 100 per cent from 431,834 units sold in 2005-06 to 863,668 units in 2006-07 as compared to desktop sales growing at 22 per cent from 4,164,724 units in 2005-06 to 5,676,111 units in 2006-07,” according to a PC penetration and installed base report by the Manufacturers Association of Information Technology (MAIT).

Typically a corporate product, the use of laptops was earlier restricted to the enterprises and senior executives. Enterprises accounted for over 60 per cent of the total laptop market in 2001, now youth aged between 18-30 years constitute 50-60 per cent of the market, according to an IDC report.

Even in the youth category there is a new segment of consumers – the undergraduate students (aged 18 - 20 years) who are becoming users of laptops. Rajiev Grover, country category manager (consumer portables), personal systems group, HP India says, “In the next two years, youth will account for 70-80 per cent of the overall market.”

HP commands 41 per cent of the laptop market, “We are growing at 100 per cent,”says Grover. Other domestic players like Zenith have also adopted an aggressive outlook to grow the market.

“We expect laptop sales to grow at 60-65 per cent and desktops at 20-25 per centin FY’07,” says Raj Saraf, chairman and managing director, Zenith Computers.

Not to be left out of this growth opportunity, HCL also launched its Leaptops range of mobile laptops in February. “Laptops already constitute seven per cent of our business and is growing at 600 per cent. In the next financial year we expect laptop sales to account for 20 per cent of our over all business,” says George Paul, vice president (Marketing), HCL.

What will give a further thrust to the sector is a good chain of IT malls like Fry’s in the West, which allows for all IT products to be viewed undera single roof,” says Vinnie Mehta, executive director, MAIT.

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