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PC market picking up but complete recovery still far away - IDC

07-December-2002
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PC market picking up but complete recovery still far away - IDC

The market research and consulting company, International Data Corporation (IDC), in its Q3 2002 PC market review showed that the market continued its crawl towards normalcy in July-August-September (JAS 2002) quarter. The unit shipments in JAS 2002 totaled at 565,200 units, 1% higher than IDC's initial forecast.

The seasonal rush that is usually seen in JAS was not evident this year. The market grew by 6.2% sequentially. On a year-on-year basis the market showed a 9.6% gain.

"Government-funded projects in the education space were the key to the improved performance in the commercial space," said Aman Munglani, Head Computing products research, IDC India.

"The consumer market continued to mirror trends seen in last quarter with a marginal sequential growth of 2%. The increase in education purchases provided a much-needed market support in Q3 to bolster an ailing commercial segment. Although there was seen a perk up in demand for the second quarter in succession, a full recovery in the country could still take some time," Munglani further added.

IDC reported that the market leaders held on to their positions for the second quarter in succession. Hewlett-Packard continued its stronghold on the Indian PC business. HCL followed second with IBM in the third position. HCL emerged the dominant leader in the commercial business space displacing HP from the top slot. The local assemblers performed well in the consumer market this quarter, as they were able to provide a greater cost advantage and reach than multinational and large Indian branded competitors. The share of the local assemblers and small regional brands totaled at 69% in AMJ 2002, up from 67% in the same quarter, the previous year.

Aided by increase in run rate business within the large and the medium business segment, notebook computers grew by an impressive 29% on a year-on-year basis. Several small deals within this form factor also aided market growth.

IDC however cautioned that the above signs of growth are not adequate to indicate an overall recovery in the market. The conditions continue to be difficult for PC vendors in the marketplace. The lack of big deals in the commercial segment and postponement of buying decisions will have a negative impact on units sold. PC vendors have been looking at smaller towns to provide the necessary impetus.

But a smart recovery is expected in 2003 and IDC forecasts a growth of 22.2% for the India PC market.

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