NEW DELHI, INDIA: MAIT (Manufacturers' Association for Information Technology), the organization representing  hardware, training, R&D and hardware design and other associated service segments of the Indian IT Industry, today released the industry performance review for the first half of the financial year 2009-10.

During the period between April-September 2009, the total PC sales, including desktop and notebooks and netbooks, was 3.71 million, registering a growth of just one per cent compared to the same period in the previous financial year.

The MAIT report said the sale of desktop computers declined by 11 per cent YoY, and during the period the sales stood at 2.6 million. Notebooks and netbooks taken together recorded a consumption of 1.1 million, which is up by 43 per cent compared to the sales figures of the year-ago period, the report added.

Given the current macro-economic conditions and conservative buying sentiment in the market, PC sales are expected to cross 7.3 million (73 lakh) units in FY 2009-10, growing seven per cent.

Commenting on the findings of the study, MAIT executive director, Vinnie Mehta said that although the sales growth was subdued in the enterprises, the overall consumption in the PC market was led by telecom, banking and financial service sectors, education and households segment.

“Verticals such as BPO/IT-enabled services, retail and the government, which traditionally account for significant proportion of the IT market, were very conservative in their IT spends in H1/2009-10. The first-half of the current fiscal also witnessed deviations from the traditional downward trend in pricing for IT products as the dollar continued to be significantly strong compared to the rupee,” he added.

As per the report, multinational brands accounted for fifty-two per cent of the total desktop market in H1/2009-10, registering a decline of seven per cent over the same period last year.

The proportion of Indian brands increased to twenty-two per cent, registering a year-on-year growth of two per cent. Consumption of assembled desktops, the smaller and lesser-known regional brands and unbranded systems witnessed a decline of thirty-eight per cent in H1/2009-10, their market share declining to twenty-six percent of the total desktop sales.

Businesses accounted for fifty-three per cent of the desktop sales with a thirty-two per cent decline in consumption, while households contributed to account for forty-seven per cent, registering a growth of forty per cent over H1/2008-09, the report further said.

In the financial year 2008-09, 527,96,481 desktops, 15,16,459 notebooks, 3,93,951 dot matrix , 751,683 inkjet and 472,022 laser printers were sold.

The association has estimated that the financial year 2009-10 may see sale of 5.4 million desktops, 1.9 million notebooks, 370000 dot matrix, 800000 inkjet and 575000 laser printers.

“The outlook for financial year 2009-10 is not very high. The stimulus given by the government has resulted in creating some growth momentum in sales. We want this stimulus package to continue and excise duty should remain at 8 per cent,” said Ravi Aggarwal, president, MAIT.

Aggarwal also mentioned that the association does not have any high expectation from the union budget except stable policy.

MAIT also mentioned that the government should provide interest free loans to state governments for purchase of IT hardware to assist them in building capacity for  e-governance program.

“IT equipment enhances productivity of an organization. The more the penetration of IT products, the more will be productivity. Relaxing of interest will pay government by increase in productivity,” added Aggarwal.