MAIT, the apex body representing India's IT hardware, training and R&D services sectors, announced the findings of its Industry Performance Review for fiscal 2008-09.
The total PC sales between April 2008 and March 2009, with desktop computers, notebooks and netbooks taken together, were 6.79 million (67.9 lakh) units, registering a decline of seven percent over the previous year
Western India followed by the South, led PC consumption accounting for thirty-seven percent and twenty-three percent of the market respectively.
Sales in the West grew by twelve percent over 2007-08, while in South it declined twenty-two percent.
PC consumption in the East increased by eighteen percent accounting for twenty-two percent of the market, a reflection of IT activities gaining ground in the region.
The Northern states witnessed a decline of thirty-four percent in PC sales, they accounted for eighteen percent of the market
Notebook sales recorded a degrowth of seventeen percent due to decline in consumption in both the establishment and the households with sales declining twenty-seven percent in the establishments and another three percent in the households.
The decline in consumption in the second-half of 2008-09 was more pronounced as sales of notebooks fell thirty-five percent compared to the same period last year
Towns and cities outside the top four metros contributed to nearly eighty percent of the notebook sales
The establishment segment accounted for forty-nine percent of the notebook consumption, the small and large establishments recorded a decline of forty-seven and fifty-three percent respectively in 2008-09 while consumption in medium enterprises grew twenty-seven percent. The SMEs accounted for sixty-eight percent of the total notebooks consumption in the country
The household segment, accounting for fifty-one percent of the overall notebook sales in the country, registered a decline of three percent in the last fiscal. The SEC A and SEC B households, together, contributed to over ninety percent of the notebook sales in the household segment. Notebooks have also started to make rapid inroads into the SEC C as well
Sales of desktop clocked 5.27 million (52.7 lakh units) declining 4 percent
Multinational brands accounted for fifty-one percent of the total desktop market in 2008-09, registering a growth of eight percent over the forty-five per cent share last year.
The proportion of Indian brands fell from twenty-two percent to eighteen percent, registering a decline of twenty two percent.
Assembled desktops and unbranded systems witnessed a degrowth of ten percent in absolute units accounting for thirty-one per cent, down from thirty-three, of total desktop sales in 2008-09
Consumption of desktops in towns and cities outside the top four metros has been progressively increasing over the years. In 2008-09, these accounted for more than three-fourth of the total desktops purchased. The top four metros accounted for twenty-five percent of the total desktop market with a sales growth of five percent
The establishments segment accounted for sixty percent of the desktop sales, registering a growth of five percent on a year-on-year basis. Owing to conservative attitude, establishments donot seem to have shifted preference in favour of notebooks. The consumption in small, medium and large enterprises grew by three percent, seventeen percent and two percent respectively.
Household consumption of desktops fell by eighteen percent, accounting for forty percent of the total desktop market, with sales crossing 1.78 million (17.8 lakh) units. Within the Households segment, SEC A and SEC B each accounted for thirty-nine percent of the market although consumption in each declined by twenty-six percent and nineteen percent respectively. Sales to SEC C at twenty-two percent market share remained flat
Sales of servers declined two percent in FY 2008-09. Bangalore, Pune and Hyderabad, the key centres of IT/ITES witnessed a decline of 78% in consumption of servers. However, driven by the need for consolidation, server consumption in large enterprises grew by thirty-five percent. Sales to small and medium enterprises declined one percent and twenty-nine percent respectively
The number of active Internet entities increased to 8.6 million (86 lakh) subscriptions by March 2009, while the figure was 7.2 million (72 lakh) units in March 2008. With this, the number of internet users exceeds sixty million
Internet penetration by entities in the top twenty-two cities was forty-seven percent among businesses and twenty-seven percent among households. The businesses segment now accounts for twenty-eight percent of the total active Internet entities and households account for the remaining seventy-two percent
DSL/cable remains the most commonly used means of Internet connectivity among businesses: forty-five percent of businesses were found to use DSL/cable, thirty-one percent dial-up connections, seven percent leased-line, four percent used data cards, one percent used VSAT while eleven percent ISDN services
The bi-annual MAIT Industry Performance Review - ITOPs, conducted by India's leading market research firm IMRB International is a survey of the domestic IT market, its potential and trends.
This round of the study involved face-to-face interviews with over twenty-five thousand respondents selected randomly across twenty-two cities in India.
The MAIT-IMRB study was initiated in 1996-97 and encompasses five broad product segments - computers, networking products, printers, other peripherals and Internet connections
With business sentiment gradually gaining momentum, PC consumption in fiscal 2009-10 is expected to cross 7.3 million units, registering a seventeen percent growth