The Indian desktop PC market reached a scale of 3.63 million units in the 2004-2005 fiscal year, growing 20% from the previous fiscal year, according to MAIT (Manufacturers Association of Information Technology). Growth was attributed vertical markets, major e-governance initiatives, and a robust consumer demand stimulated by falling prices. First half volume stood at 1.71 million units, while scale decelerated to 1.91 million units in the second half, resulting in fiscal year performance that ran short of the original four million unit goal.

 

Over the course of the fiscal 2004 - 2005 year, the enterprise segment continued to dominate, accounting for 72% of the market, growth of 11%. The consumer segment, however, is advancing at a faster rate due to the onslaught of entry-level models, rising 48% to comprise 28%. High levels of price sensitivity in the consumer segment also generated a 20% increase in desktop PCs adopting alternative processors such as AMD, Via, and Cyrix; alternative CPU rose to account for 14% of the consumer segment. The P4 was adopted in 81% of total sales.

 

Aggressive pricing by the major brands resulted in heavy erosion of the clone market. Holding 53% in the 2003 - 2004 period, the clone market tumbled to 41%, a 7% decline in volume. Collective market share of the major brands grew from 26% to 35%, a volume gain of 61%. Indian brand market share rose slightly from 21% to 24%. Smaller towns in India are also beginning to comprise a larger share of the PC market. Class C cities broke 50% of total sales for the first time, while Class B and C cities aggregately took 62%, compared to 57% during the previous period.

 

	Indian Computer Market, Fiscal 2004 - 2005
		Volume (Units)		Value (Rs Crores)
		2004-05	Growth	2004-05	Growth
Desktop PC		3,632,619	20%	7520	8%
Notebook PC		177,105	99%	978	69%
Server		49,165	-8%	916	6%
Source: MAIT; compiled by MIC, July 2005