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Indian IT Market Overview - Hardware

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CIOL Bureau
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Hardware grew

faster
The growth rate of the hardware market

went up from around 14 percent in 1997-98 to over 16 percent in 1998-99.

Hardware

The Indian IT market sustained its growth rate in 1998-99 primarily due to a

substantial improvement in the growth rate of the hardware market, which went up from

around 14 percent in 1997-98 to over 16 percent in 1998-99.

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Personal computers formed the largest chunk of the total hardware market in 1998-99,

growing at an annual growth rate of over 20 percent. This marked an improvement of almost

7 percentage points over the previous year. Strong demand for PCs in hitherto untapped

segments like Home, Small Office and Small Business will continue to fuel growth of the PC

market.

 

PC Market grows

by a third
The Indian PC market recorded a healthy

growth in 1998-99, with unit shipments recording a growth of 33 percent in unit terms and

20 percent by value.
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Personal Computers



The Indian PC market recorded a healthy growth in 1998-99,
with shipments recording a growth of 33 percent in unit terms and 20 percent by value.

Among the various form factors, Desktop PCs grew commensurate with the market growth.

After staying virtually stagnant in 1997-98, PC Servers grew at a robust 27 percent in

unit terms. Growing demand from banks and financial institutions, especially in the latter

half of the year fuelled the growth in the PC Server market. On the other hand, the

Notebook market remained constrained, registering a growth rate of only 10 percent in

1998-99. IDC believes that demand for Notebook PCs is still a corporate-only phenomenon.

High prices vis-à-vis similarly configured Desktop PCs remain the main deterrent.

In a year when the economy was at its worst and corporate investment was

constrained, the Home segment turned out to be the saviour for the PC industry. The

segment grew by an astounding 89 percent, with shipments crossing the 200,000 mark. Small

Business and Small Offices were the other segments that recorded growth rates higher than

the market average. These three segments captured more than 51 percent of the market in

1998-99, up 12 percentage points since 1997-98.

Hardware Market ,1997-98 and 1998-99

(Rs. Crore)

Segment 1997-98 1998-99 Growth (%)
Personal Computers* 3335 4009 20.2%
Servers (other than PC Servers) 484 421 -13.0%
Traditional Workstations 140 109 -21.6%
Peripherals 1107 1231 11.2%
Datacom Products 678 913 34.5%
Total Hardware Market 5744 6683 16.3%
* includes desktops, notebooks

and PC servers

Source: IDC (India) Limited, 1999

Hardware - PCs
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