No Growth in PC Sales in India This Year, Says Trade Body

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There will be no growth in PC sales in India in the fiscal year ending March 31, because of the economic downturn and conservative buying, according to a local trade body.

The country's total PC sales will remain at about 7.3 million units, the same as the previous fiscal year, the Manufacturers Association of Information Technology (MAIT) said on Tuesday.

Growth in India's PC market was flat in the third quarter of the last calendar year, and is likely to stay this way through this year, research firm IDC India said in December.

Before a slowdown that started affecting PC sales in the fourth quarter of 2008, PC sales in the period from April to September were 3.7 million units, up by 12 per cent over the same period in the previous year, MAIT said.

Desktops had the largest share of the market during the period, accounting for 2.91 million units, followed by notebook PCs at 770,000, according to MAIT. In the desktop segment, multinational brands took a 47 percent share of the market, while Indian vendors accounted for 18 percent. In this segment, unbranded PCs still account for 35 percent of the market, MAIT said.

Small operations that assemble unbranded PCs offer products at lower cost with friendly neighborhood support that the multinational and large Indian brands cannot match, according to analysts. These assemblers have not made a significant impact in the laptop market, as assembling notebooks requires investment in sophisticated technology.

Even as India's PC market appears to be slowing down, the country's mobile market is booming. It is adding over 10 million new subscribers every month, according to the Telecom Regulatory Authority of India.

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