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PC sales up 20% in FY05

Last updated on: July 05, 2005 15:48 IST
Personal computer sales crossed 36.3 lakh units during 2004-05, registering a growth of 20 per cent over 2003-04 on the back of strong household sales.

In line with sound macro-economic conditions and buoyant sentiments, PC sales are expected to cross 42.5 lakh units in the current fiscal, the Manufacturers Association for Information Technology said on Tuesday.

The proportion of assembled PCs (unorganised and unbranded systems) reduced eight per cent, accounting for 41 per cent of the total PC sales in 2004-05 against 53 per cent in the previous fiscal.

At the same time, the proportion of Indian brands has grown from 21 to 24 per cent while the share of MNC brands increased to 35 per cent in 2004-05 from 26 per cent a year ago.

The growth in PC sales can also be attributed to significant consumption by telecom, banking, manufacturing as well as BPO and IT services segment, MAIT executive director Vinnie Mehta said in New Delhi.

The industry had been witnessing lower growth rates in the last four years due to an increasing base of PCs. In 2003-04, the industry had seen a growth of 32 per cent, declining from 37 per cent a year before.

He, however, said the association was giving a very conservative estimate of 17 per cent at this point of time, and the growth could be about 25 per cent over the next four years.

Mehta said increased usage of broadband and more penetration in small towns could drive up the growth rate to 25 per cent from the estimated target of 17 per cent.

Commenting on declining growth rate, he said, "The base has increased (from 23 lakh in 2002-03 to 36.3 lakh at present)" and with regard to the missed target of 40 lakh units in FY05, he said, "the usual sales pick-up quarter of January-March of 2005 did not see any buying due to consumers' confusion and lack of clarity on price of computers arising out of Budget announcements, IT agreements and value added tax."

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