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India PC market up 34.4% in 2004

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March 09, 2005 19:18 IST

Indian personal computer market has posted a 34.4 per cent growth in year 2004 and recorded the second highest shipments at 33.87 lakh in Asia-Pacific region, according to global research and analyst firm Gartner Inc.

"Peaking business confidence based on strong economic growth catalysed PC purchases in both consumer and corporate segments throughout 2004," Gartner India Analyst (Computing Systems) said in a press release on Wednesday.

While on one hand desktops were finding new users in metro and upcountry markets, notebooks were selling 'remarkably well on convenience and mobility', it said, adding, from a sector perspective, finance and banking, government and Small and Medium Businesses (SMB) were the main drivers for the growth.

India recorded the second highest shipment in APAC market with a 34.4 per cent growth shipping over 33.87 lakh units, as against 25.21 lakh units shipped during the same period a year ago, it said.

China topped the sector with shipments of around 1.49 crore units, even though it posted a growth rate of 14.9 per cent in the year.

India was followed by Vietnam posting a 25.9 per cent growth, while New Zealand was in the third slot with a 19.8 per cent growth. The data included that of desktop PCs and mobile PCs, it said.

The top vendors in India posted a 'remarkable growth', garnering a marketshare mainly from the white-box segment, while also growing the market.

Within this segment, desktops grew by 31.5 per cent while notebooks grew 116 per cent over 2003, it said. Acer garnered an 87.9 per cent (3.4 per cent in 2003) growth, while Hewlett-Packard posted around 85.4 per cent (12.7 per cent) growth and HCL at 84.4 per cent (12.6 per cent) during the year under review, it added.

Looking forward, Gartner expects Indian market to grow by 29.3 per cent in 2005, due to the strong economic indicators on back of a growth-directed financial budget making way for healthy PC uptake in 2005.

"The current Budget announcements will augment the disposable income of families, signalling further growth in PC deployment in consumer segment," Nair said.

"While there will be a small correction in the new user markets, this will be more than compensated by upgrades and replacements by existing users", he further added.

On the marketshare of APAC region, Gartner said it remained on track for a double digit growth as PC shipments were estimated to total 37.3 million units in 2005, a 12.8 per cent increase from 2004.

The PC market ended the year 2004 with a stellar performance with year-on-year growth of 13.8 per cent and shipping of 33.1 million units.

According to Gartner Principal Analyst (Client Platforms) Lillian Tay, "Demand was exceptionally strong from the professional market (including business, education and government segments) where replacement and expansionary demand drove shipments."

This was assisted by better economic situation and the need to replace aging PC, she said.

  • 1 lakh = 100,000
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