Gurgaon/New Delhi, November 30, 2006 – The third quarter (3Q) of 2006 recorded an impressive growth in terms of unit shipments - the Indian Client PC market grew 24% over 3Q 2005, to exceed the 1.4 million shipments-mark in a single quarter, according to IDC's India Quarterly PC Market Tracker, 3Q 2006, November 2006 release.
“With the impact of Intel chip price cuts getting clearer, the Small and Medium Business (SMB) segment registered a strong double-digit year-on-year growth in PC shipments. The festive season promotions kept the growth momentum going for consumer segment. These market trends were further provided a boost due to a spurt in the shipments of notebook PCs to the Education segment in 3Q 2006 vis-à-vis 3Q 2005”, said Piyush Pushkal, Assistant Manager, PC Research, IDC India.
In the overall Client PC (sum of Desktop PC and Notebook PC) market, the rankings remained unchanged - HP retained the top slot with a market share* of 21%, followed by HCL at 12%, and Lenovo at 9% in terms of unit shipments.

In terms of total desktop PC shipments*, HP led the market in the JAS quarter of 2006 followed by HCL and Lenovo. The consumer desktop PC market witnessed a flat performance with a 2% year-on-year growth. HP retained the top slot followed by HCL and LG at second and third spots, respectively. The commercial desktop PC market witnessed an 18% sequential growth and a 24% year-on-year growth in unit shipment terms. In this market too HP led the ranks followed by HCL and Lenovo.

The notebook PC market continued the growth momentum during 3Q 2006. The notebook market registered a 79% year-on-year growth during JAS 2006 thanks to buoyant buying by the education segment. The consumer notebook PC category witnessed an 18% sequential growth and a 137% year-on-year growth. In terms of total notebook PC shipments*, HP retained the top slot with a market share of 41% in JAS 2006.

Some of the major market highlights visible through 3Q 2006 were:

India PC Shipments by Form Factor

                $ Includes all Desktop and Notebook shipments

“The commercial desktop PC market moved beyond analyst expectations, as the channel business for ‘White Box’ machines revived as a result of huge marketing spends targeting the channel partners and through them the growing base of SMB users. Shipments of commercial desktop PCs to the SMB segment grew 46% year-on-year* (3Q 2006 over 3Q 2005)”, Piyush further added. According to Piyush Pushkal, Assistant Manager, PC Research, IDC India, “As more and more higher education institutions moved aggressively towards implementing WiFi campuses along with usage of notebook PCs in their learning tools and methodologies, this led to a huge growth of shipments to this segment. Business Schools as well as Engineering Colleges have picked up this trend strongly. Coupled with aggressive marketing by vendors, the Education segment in the notebook PC market as a whole witnessed a massive growth of 357% year-on-year* (3Q 2006 over 3Q 2005) in terms of unit shipments.”

"The SMB segment in the notebook PC market as a whole witnessed a massive growth of 51% year-on-year* (3Q 2006 over 3Q 2005) in terms of unit shipments. The bundling offer of a data card with notebook PCs has also created a positive impact in the market. Large corporate users as well as small office/home office (SOHO) users have an added reason to buy a notebook PC or 'upgrade' from a desktop to a notebook. The offer provides a complete mobility solution to busy executives and professionals who are 'on the go'”, Piyush concluded.

*According to IDC's India Quarterly PC Market Tracker, 3Q 2006, November 2006 release.