It's boom time again for the Indian hardware industry after suffering from some confusion owing to the change in the duty structure for IT products and the subsequent introduction of VAT.
According to the latest data released by MAIT, the hardware industry body, PC sales have the crossed one-million mark in the first quarter of current financial year.
One interesting trend is the way notebook PCs are substituting desktops. Notebook PCs registered a 123 per cent year-on-year growth and 137 per cent sequential growth, whereas desktops sales recorded a growth of a paltry 5 per cent over Q1/2004-05 (Y-o-Y) and is 5 per cent lower than the sales in Q4/2004-05 (sequential).
This high growth of notebook PCs can be attributed to the steep drop in its prices. With notebook prices matching those of PCs, the former is increasingly finding its way into homes, SMEs and corporates.
As per a MAIT-IMRB study, assembled PCs, the lesser known regional brands and unbranded systems accounted for 42 per cent of the PC sales in Q1/2005-06, while the proportion of branded PCs was 58 per cent. MNC brands accounted for 37 per cent of the market while Indian brands accounted for the remaining 21 per cent.
Commenting on the findings of the study, Vinnie Mehta, Executive Director, MAIT, said, "With significant thrust to improve IT penetration in the country by the government and the industry through lower bandwidth and PC rates and impetus for local language software and applications, we expect the market to gain momentum in the forthcoming quarters."