PC sales in Q4 2009 touch 19.7 lakh units

The overall India PC market sales touched 19.7 lakh units during the October-December 2009 quarter, recording a 25.7 per cent year-on-year growth (over October-December 2008 quarter), pointing to a strengthening recovery.

Desktop PC sales accounted for nearly two-thirds of total PC sales at 12.7 lakh units, representing a 14.6 per cent increase year-on-year. However, on quarter-on-quarter basis (over July-September 2009) there was a 12.8 per cent decline in sales (shipments) due to seasonality factor.

Notebook PC sales grew at 52.8 per cent year-on-year (4Q calender year 09 over 4Q CY08) clocking 6.9 lakh units in October-December 2009. The desktop PCs recorded sales of 12.91 lakh units, representing a year-on-year growth of 14.6 per cent.

Total India personal computer shipments have grown for the last four consecutive quarters of 2009 after dropping sharply from a peak of 22.6 lakh units in July-September 2008 to 15.6 lakh units in October-December 2008. Notably, home PC shipments (both desktops and notebooks) climbed a significant 38 per cent in year-on-year (October-December 2009 over October-December 2008).

While this was along expected lines, from an industry viewpoint the pleasantly surprising development was the growth of 57.0 per cent year-on-year (October-December 2009 over October-December 2008) in notebook PC shipments to the large business (500-999 employees) and very large business (1,000 or more employees) segments.

According to Kapil Dev Singh, country manager, IDC India, ''With multiple factors like economic revival, technological developments, increasing relevance for the users and right price points, all converging, we are at the beginning of yet another growth curve in the domestic PC market.''

''The PC market growth will be led by notebook PCs increasingly fitting into an individual's life in more ways than one,'' he added.

In the overall PC (notebooks and desktops combined) market, HP retained the top spot with a market share of 16.2 per cent in terms of unit shipments, while Dell and Acer closed in with 13.6 per cent and 10.4 per cent, respectively.

In terms of desktop PC shipments HP retained its top position with a market share of 11.6 per cent, followed by HCL and Acer in second and third spots, respectively during 4Q CY09.

However, it was in the notebook PC shipments that the market witnessed a shake-up, as Dell captured the top spot with a market share of 26.3per cent for the first time in 4Q CY09.

''Dell's ascent in the India notebook PC market in 4Q CY09 can be attributed to their consistent marketing efforts over the previous quarters. Availability of a wide product portfolio with appealing aesthetics and branding helped Dell connect with 'Gen X' buyers – students as well as young executives'', stated Sumanta Mukherjee, lead PC analyst, IDC India.

''The revival of buying by the large business and very large business segments, which have traditionally been strong segments for Dell also shored up the vendor's performance in the quarter ended 31December'', Sumanta further added.

India PC Shipment Growth Trends by Form Factor: October-December 09 vs. July-September 09 and October-December 09 vs. October-December 08* (Unit Nos)

Form Factor	4Q CY09	3Q CY09	4Q CY08	Growth (4Q CY09 over 3Q CY09)	Growth (4Q CY09 over 4Q CY08)
Desktop PCs	1,271,485	1,458,202	1,109,046	-12.8%	14.6%
Notebook PCs	693,911	731,707	454,211	-5.2%	52.8%
Total Client PC	1,965,396	2,189,909	1,563,257	-10.3%	25.7%

* Source: IDC's India Quarterly PC Tracker 2009, 4Q CY2009,
February 2010 release

 India Overall PC Shipments and Year-on- Year Growth (%): 1Q CY08 to 4Q CY09*

IDC's India Quarterly PC Tracker 2009, 4Q CY2009, February 2010