PC sales bit by slowdown bug

Reduced spend on IT across enterprises along with a negative consumer buying sentiment is taking its toll on the overall PC market. According to the figures released by industry body, Mait, PC sales during April to September 2008 crossed 36.9 lakh units, registering an increase of 12% compared to the same period last year, but down 9% sequentially (October to March period of 2008).

As per the forecast by Mait, PC sales for the full financial year 2008-09 are expected to be almost flat at 7.3 million units. Mait had earlier projected PC sales for the current financial year to be at 8.5 million units. "The global economic downturn has started reflecting on the domestic IT market as evidenced in the recent October-December quarter. We expect a flat market for PCs for the fiscal 2008-09,"said Vinnie Mehta, executive director, Mait. As per the report, the total Internet users in the country have exceeded 54 million.

Between the first half of the fiscal (April-September), desktop sales stood at 29 lakh units, up 12% compared to the corresponding period last year. However, the desktop sales were flat sequentially. On the other hand, notebook sales were at 7.7 lakh units, an increase of 13% over the same period last year. Notebooks sales, however, declined by 32% sequentially.

The numbers for this period are an aberration from the trend for many years wherein the notebooks were registering a growth of over 100% y-o-y and desktop sales had almost flattened out. "This is probably due to the fact that people are opting more for desktops as they continue to be a cheaper option compared to notebooks,"said Mehta.

PC sales to enterprises increased by 24% while in households it declined by 6% over the same period last year. "Government and the public sector spending is expected to be the mainstay of domestic market IT consumption. Cost concerns are leading to significant consolidation of IT infrastructure in corporates with virtualisation gaining acceptance,"said Ravi Swaminathan, vice-president, Mait.