Personal computer sales in India : Tier-2 cities drive 59% sales [Report]

The total PC sales between April 2011 and March 2012, with desktop computers, notebooks and netbooks, were 10.8 million units, registering a growth of 16% over the last fiscal, according to a report by MAIT. The sales of desktops stood at 6.7 million units registering a growth of 11%. Notebooks sale totaled around 3.7 million units, growing 26% over the last year.

According to the report, notebook plus netbook sales represented a growth of 22 % despite of rising inflation; however it posted a growth of 31% last year. Growth in this segment was primarily driven by the household segment, which contributed 58% of total notebook purchase. Importantly, Netbook registered sales of 2.87 lakh unit, which points out the decline of 11% over the previous year.

Interestingly, for the very first time household desktop market (53%) surpassed establishment (47%) contribution by 6%. With this, households’ desktop market has registered a growth of 17% during 2011-12 over the same period last fiscal.

The top four metros, accounted around 28% of the total desktops purchased, while tier 2 & 3 cities accounted for 13 % of the market. Consumption in top four metros grew by a meager 4 per cent, while tier 2 & 3 cities grew remarkably by 12 %. Smaller cities contribution stood at 59% and managed to represent growth of 15%.

The report mentions that the UPS market reported 2.54 million sales with establishment segment posting a strong growth of 11% while household market grew at 6%. At the same time, sales of servers registered a growth of 3% over the last financial year.

The number of active Internet entities posted 15.9 million in March 2012 with a growth of 15 % over March 2011.  Internet penetration in the 22 cities was 62% among businesses and 32 % among households. Dial up contributed around 40% of the total internet connection in establishment while ISBN, leased line, data card contributed around 13%, 10% and 22% respectively in 2011-12.

As per MAIT forecast, the PC industry is expected to grow with 15% to reach 12.4 million units in 2012-13. The report is prepared by by IMRB International and based on face-to-face interviews with over 28,000 respondents selected randomly across 35 cities in India (read our disclaimer with respect to surveys: Why and how to read survey reports?).

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