PC market shows growth but complete recovery is still awaited: IDC

IDC's Q3 2002, PC market review, showed that the market continued its crawl towards normalcy in July-August-September

(JAS 2002) quarter. Unit shipments in JAS 2002 totaled at 565,200 units, 1 percent 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 percent sequentially. On a year-on-year basis the market showed a 9.6 percent gain. 

"Government-funded projects in the education space were the key to the improved performance in the commercial space,"

says 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 2percent. 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."

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. 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 percent in AMJ

2002, up from 67 percent 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 percent on a year-on-year basis. Several small deals within this form factor also aided

market growth.

However the above signs of growth are not adequate to indicate an overall recovery in the market. 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. 

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

DQCI NEWS BUREAU