A significant fall-out of the PC’s popularity is the inroads made by MNC brands into the category.
An IMRB survey for MAIT has established that the market share of MNC brands increased from 22 per cent to 23 per cent in 1999-2000, while that of domestic brands reduced from 25 per cent to 19 per cent.
According to the IDC India’s Millennium Home Study, PC owners have cited the need to "enhance computer skills of self and family members" as the primary reason for purchasing PCs. No wonder then that the home PC segment is growing at an impressive compound annual growth rate of over 80 per cent.
IDC has projected a growth rate of 56.9 per cent by 2003-2004 in the consumer desktop segment, as compared to a 40.7 per cent growth in the commercial desktop segment.
Despite the changes in the branded segment, IDC findings prove that it is the assemblers who dominate with over 70 per cent market share — thanks to pricing, personalised services and sales experience. However, the MNCs are making a determined effort to improve on these fronts too.
With better sourcing, money and understanding of the market, both H-P and Compaq have lately increased their reach through retail service outlets across the country, with a special drive into non-metros.