Indian hardware market growth to be positive: Gartner

The Indian IT hardware end-user spending, which is estimated at $2.3 billion
in 2002 would grow to $6.78 billion by 2006, at a CAGR of 9.5 percent and this
includes PCs, notebooks, printers, servers and workstations. This was announced
at the recently-held Nasscom-Gartner Summit.

Mathew Boon, Principal Analyst - Hardware Platforms, Gartner says,
"Events of the past year caused a wave of cautious spending on hardware by
companies across all verticals. In many cases, hardware purchases have either
been postponed or cancelled as corporates sensed tough business conditions in
the near future. Though it spells tough times for now, the market is slated for
recovery towards the first half of 2003."

End-user IT hardware spending to touch $6.78 bn by 2006 End-user PC sales to contribute 90 percent to total IT spending by 2006

The Indian PC market accounted for revenue worth $1.6 billion in 2001 with a
CAGR of 11.5 percent from 2001 through 2006. PC end-user spending is estimated
to contribute 85 percent of the total end-user spending in 2002 and would
account for 90 percent of the total market in year 2006.

Adds Mathew, "The current demand for PCs arises mainly from the urban
areas. Upcountry markets provide scope for further elevation in demand but poor
infrastructure and logistical hurdles inhibit the product reach. Around 28
percent of PC shipment goes into the home segment. The Internet and education
segment have been positive drivers here."

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