However, the four major trends were visible through the year are as follows. First, branded PC vendors increased their channel reach and retail presence in the upcountry markets (B, C and D class cities and towns) and metros, respectively. Second, on the commercial desktops front, all major vendors revealed an enhanced go-to-market spend on the SMB segment, which recorded a 21% year-on-year growth in unit shipment terms.

Third was the introduction of Sub Rs 10,000 PCs in the Indian market and the resultant impact, while fourth trend was a 148% year-on-year growth in Notebook PC shipments.

"Players like Acer, HCL, HP, Lenovo and Zenith signed up new channel partners in upcountry markets besides launching branded retail stores in the major metro cities", said Piyush Pushkal, Senior Analyst, PC Research, IDC India. Government along with the IT services and financial services sectors were the prominent buyers contributing to the growth in the commercial desktops segment during 2005.

IDC data shows that the Sub-Rs 10,000 PCs (as promoted by PC vendors) actually reach the customer premises at a landed cost of Sub-Rs 13,000 after adding taxes, freight and handling. These Sub Rs 13,000 PCs have not sold very large numbers since their launch in JAS 2005, contributing to just 2% of total desktop shipments during the July-December 2005 period, according to IDC's India Quarterly PC Market Program, 4Q 2005, February 2006.

The consumer desktop category witnessed a 29% year-on-year growth in unit shipments in 2005 over 2004. HCL led this category over HP, with LG following the market leaders at the third slot.

The change in the customs duty structure resulted in overall prices dropping considerably of notebook PCs. This generated greater demand for the form factor. HP continued to lead this category with a market share of 40% in unit shipments. Lenovo and Acer were at second and third slots with market shares of 17% and 14%, respectively (in terms of unit shipments).

DQC NEWS BUREAU

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