India's PC Market Has Started Recovering, Says IDC

India's PC sales were 2.19 million units in the third quarter, down by 3.1 percent from the same quarter a year ago, research firm IDC India said on Thursday.

Sales in the third quarter were, however, 24 percent higher than in the second quarter, indicating that a recovery in the market has begun, said Kapil Dev Singh, country manager of IDC India.

The decline in sales in both consumer and commercial markets has been stopped, he added. In the second quarter, the PC market had fallen by 15.3 percent over the same quarter in the previous year.

A full recovery with strong double-digit growth is however expected only by the third quarter of next year, according to Singh. Consumer and corporate sector buying has not yet recovered to levels before the recession, he said.

A number of PC companies have identified India as a high-growth market. "We certainly see India as a growth market in the long term," said a spokeswoman for Dell, which saw its market share pick up in the quarter.

Desktops are still the dominant form factor in the Indian market, and at 1.46 million units accounted for nearly two-thirds of total PC sales in the third quarter. Notebook shipments were 731,707 units in the quarter.

Hewlett-Packard retained the largest market share, 17.1 percent, followed by Dell with 11.3 percent, and Acer with 11.1 percent.

India's mobile telephony market in contrast was unaffected by the recession, and in fact showed strong growth, as communications was viewed by consumers as a necessity, according to analysts.

India's mobile handset market was 100.9 million units in the year ended June 2009, up by 6.7 percent from 94.6 million units in the previous year ended June, 2008, IDC said in October.

India had 488.4 million mobile subscribers at the end of October, according to the Telecom Regulatory Authority of India. The country added 16.67 million new subscribers in October.

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