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Shipments of PCs recorded a growth of 40% in unit

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CIOL Bureau
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PC market Q1 good despite political, economic

uncertainty IDC (India)'s PC Tracking Program reveals that the Indian PC

market recorded a healthy growth in the first quarter of fiscal year

1999-00, despite political and economic uncertainties. Shipments of PCs

recorded a growth of 40% in unit terms and 50% in value terms over

April-May-June (AMJ) 1998. A total of 230,133 PCs were shipped in AMJ 1999

for a value of Rs 1,191 crore.

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Performance in the first quarter of the fiscal year is usually the

weakest because of the annual low in the business cycle. Therefore, good

growth even in the first quarter points to another excellent year ahead

for the PC market.

While desktop PCs grew commensurate with the market growth, PC servers

grew a robust 58% in unit terms. The notebook market showed good growth

after remaining constrained for most of 1998-99. Compared to AMJ 1998, 37%

more Notebook PCs were shipped in AMJ 1999, with IBM and Compaq

contributing to this by aggressive marketing. Also, corporates,

particularly the MNCs, appear to increasingly appreciate the need for

Notebooks for their highly mobile executives.

Home, Small Business and Small Office segments continued to be the

growth engines for the PC market. The Home segment grew by 78%, with

shipments touching 66,000 units. This segment now takes a larger share of

the total market-29% compared to 23% in AMJ 1998. In recognition of the

segment's growing importance, MNC vendors such as Compaq and Hewlett

Packard launched affordable Home PCs in AMJ 1999. In spite of the annual

low in the first quarter, even Large and Medium businesses recorded good

year-on-year growth rates of 31% and 29%, respectively.

Compaq was the market leader in terms of number of PCs sold, followed

by HCL and Zenith. Compaq did well because of channel initiatives in the

Notebook market and due to further strengthening of its leadership

position in the PC server market. The launch of its affordable Home PC

model-Presario 4010 too helped Compaq to upstage HCL as the market leader.

IBM and Hewlett Packard too were very active. Hewlett Packard successfully

launched a Home PC range in AMJ 1999.

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