Hardware Sales Growing: MAIT-IMRB Study

by CXOtoday Staff    Jun 30, 2006

MAIT, the apex body representing the hardware, training and R&D sector of the IT industry in the country, has announced the findings of its Industry Performance Review for the financial year 2005-06.

The PC market - desktops and notebooks taken together, registered a growth of 32% over the last fiscal. Desktop sales registered an annual growth of 27% while the notebooks shipments grew 144% over 2004-05.

With sound macroeconomic conditions and buoyant buying sentiment in the market, desktop sales are expected to cross 5.6 million units in fiscal 2006-07 while overall PC shipments would exceed 6 million units.

The growth in PC sales can be attributed to significant consumption by industry verticals such as telecom, BFSI, manufacturing, retail and BPO/ IT-enabled services as well as major e-Governance initiatives of the Central and State governments.

The study, conducted by IMRB (Indian Market Research Bureau), involved face-to-face interviews with over 25,000 respondents selected randomly from 22 cities in India. The MAIT-IMRB study encompassed five broad product segments - computers, networking products, printers, other peripherals and Internet.

Highlights of the study:

* PC sales to the business segment have improved by 33% accounting for 75% of the total PC consumption.

* Within business, sales to the larger business (over 50 employees) grew by 38%; to the medium business segments (between 10 and 50 employees) grew by 17% and that to small enterprises by 45%.

* Notebooks witnessed the highest growth amongst all product categories with 143% growth in overall consumption. In SMBs the consumption grew by 248% and 124% for large enterprises. Mid sized business accounted for 22% of the sales registering a growth of 96%.

* The server market registered a growth of 81%. Server sales grew by 51% in the larger business segment and by 188% in the mid-sized business. Smaller business witnessed an increase in consumption by 45%.

* In the networking market, sales of modems dropped by 23%. Sales of Network Interface Cards (NICs) grew by102% and that for Hubs by 27%. Consumption in business segment declined by 15% accounting for the rest 42%.

* The UPS market grew by 27% over 2004-05. Consumption in business grew by 38%.

* Business accounted for 79% of keyboard shipments.

* Consumption of monitors surged to a growth of 27% over the last financial year. Business accounted for 80%.

* The number of active Internet subscribers increased to 4.12 million in March 2006, while the figure was 3.12 million in March 2005.

* The business segment now contributes 37% of the total active Internet entities, growing 19%, and households account for the remaining 63%. Dial-up remains the most commonly used means of accessing the Internet among business, although the proportion of businesses using dial-up has dropped from 54% in March 2005 to 38% in March 2006. The proportion of access through DSL/ cable link increased from 29% to 37% during the same period.