In the overall Client PC (sum of Notebook PC and Desktop PC) market, the rankings remained unchanged - HP retained the top slot with a market share* of 18%, followed by HCL at 14%, and Lenovo at 9% in terms of unit shipments.

In terms of total desktop PC shipments* HCL led the market in the financial year 2005-06 followed by HP and Lenovo. In terms of total notebook PC shipments* HP was the top vendor.

Some of the major highlights visible through 1Q 2006 were:

• Buoyant commercial desktop market - shipments grew 14% sequentially* (1Q 2006 over 4Q 2005)
• Vendors continued their focused go-to-market spend on the SMB segment; medium business segment responded by showing a 40% sequential growth* (1Q 2006 over 4Q 2005) in unit shipment terms
• Consumer PC market showed new-found maturity evident from the spate of Bollywood superstar endorsements in the case of promotions of desktops and notebooks from HP and Lenovo
• A 177% year-on-year growth* (1Q 2006 over 1Q 2005) in notebook PC shipments despite the re-imposition of 12 per cent excise duty in the budget.

Commercial desktop shipments in 1Q 2006 performed as per IDC guidance, with a 14% sequential growth* (1Q 2006 over 4Q 2005) and a 16% year-on-year growth* (1Q 2006 over 1Q 2005). This was the highest sequential growth witnessed in the Indian commercial desktop PC market in the preceding eight quarters. "For the large corporate segment, it was business-as-usual but it was the Government and medium business segments which contributed significantly to this market performance", said Piyush Pushkal, Senior Market Analyst, PC Research, IDC India.

In 1Q 2006, consumer desktop shipments recorded a growth of 3% sequentially* (1Q 2006 over 4Q 2005) and 36% year-on- year (1Q 2006 over 1Q 2005). Bollywood superstars like Shahrukh Khan, Saif Ali Khan and Soha Ali Khan endorsing PCs, featured in the promotions for desktops and notebooks from HP and Lenovo. "These superstar endorsements signified new-found maturity in this segment of the market. They helped HP and Lenovo to notch up healthy levels of brand visibility and also helped in expanding the overall consumer market for PCs", Piyush further stated.

The notebook PC market took another great leap in India during 1Q 2006 despite the uncertainty around changes in taxes and duties during the annual government budget. Coupled with aggressive marketing by vendors, the notebook PC segment as a whole witnessed a massive growth of 177% year-on-year* (1Q 2006 over 1Q 2005) in terms of unit shipments.

According to Piyush, "In the consumer market, notebooks are increasingly being bought for use as second PCs. The buyers are already familiar with desktops and are ready to migrate to the next level of technology. At the enterprise level, notebooks are increasingly being looked at as productivity tools, not meant for the designated few in the organisation's hierarchy but for the larger workforce.”

*According to IDC's India Quarterly PC Market Tracker, 1Q 2006, May 2006 preliminary release