Notebook PC shipments growth exceeds 73% quarter-on-quarter; projected to corner 40% share of the overall India client PC market by 2010

North India emerges as largest market for both desktop and notebook PCs

New Delhi/Gurgaon, September 25, 2007 - During 2Q 2007, the overall India client PC market grew 22.1%* year-on-year (2Q 2007 over 2Q 2006) in terms of unit shipments. For the same period (2Q 2007 over 2Q 2006), desktop PC shipments showed a growth of 11.3%*, while notebook PC shipments showed a growth of 73.1%* (2Q 2007 over 2Q 2006).

In the overall Client PC (Notebooks and Desktops combined) market the rankings remained unchanged. HP retained the top spot with a market share* of 22.2%, followed by HCL at 12.8%, and Lenovo at 10.3%, in terms of unit shipments during the second quarter of calendar year 2007 (2Q 2007).

In terms of desktop PC shipments HP managed to regain its top position with a market share* of 16.7%, followed by HCL and Lenovo in second and third spots, respectively during 2Q 2007. In terms of notebook PC shipments, HP retained the top spot with a market share* of 40.4% in 2Q 2007. Lenovo came in at the second spot and Dell climbed up to take the third spot. 

The key market trends witnessed during the April-June 2007 quarter, with a likely long-term impact on the India client PC market are:

Notebook PC market momentum continued unabated. Brand value and service capabilities to define future market leaders, while volume growth is expected to help make notebook PCs more affordable. 

Northern India garnered the lion’s share of total client PC shipments followed by the southern and western parts of the country. The eastern region moved from a share of 7% in 2Q 2004 to a share of 11.6% of the total India client PC market during 2Q 2007.

India Notebook PC Market
The India notebook PC market sustained its robust growth as shipments expanded 73.1% year-on-year (2Q 2007 over 2Q 2006). The consumer notebook segment was extremely active in this quarter, increasing from 29% to 32% share of the total notebook PC shipments.

According to Piyush Pushkal, Manager, Computing Products Research, IDC India, “Notebook PC purchases will be heavily influenced by ‘brand value’ and service capabilities in the minds of customers, while economies of scale will help vendors remain competitive and offer better price points going forward. Consumers would benefit even further when local vendors gear up and compete with the big, global players through a strategy of price, smart sourcing and product innovation."

“SMB enterprises, Education and Consumer segments would continue to be major drivers for the notebook PC category”, Piyush further added.

Regional Trends
During 2Q 2007 growth of client PC shipments in northern India and southern India was driven largely by shipments of notebook PCs. Due lack of large deals in the BFSI and IT/ITeS segments during the quarter, shipments of commercial desktop PC fell in the western region. Eastern India, starting on a low base, witnessed significant traction of notebook PCs. Along with the Consumer segment, Banking, Financial Services and Education sectors helped shipments in the eastern region to grow. With a lot of untapped potential, Eastern India has a significant potential for future growth of the India client PC market.
 

India Client PC (Desktop + Notebook) Shipments by Region: 2Q 2007
Client PC (Desktop + Notebook)	2Q 2007 (% share)	Year-on-Year Growth (%)
Northern India	32.6%	31.2%
Eastern India	11.6%	30.8%
Southern India	28.9%	24.8%
Western India	26.9%	7.7%
Total	100.0%	22.1%

In the total desktop PC market, HP was the leader in three regions, while HCL was the leader in the fourth.

Notes for Editors:
Commercial Desktops: All desktop PC units shipped to the business, government, or education markets, regardless of vendor hardware definition.

Consumer Desktops: All desktop PC units shipped to the home market, regardless of vendor hardware definition. All desktop units not shipped to the home market are excluded from this segment

States by Region:

• Northern India: NCR Delhi, Haryana, Punjab, Himachal Pradesh, Jammu and Kashmir, Rajasthan, Uttar Pradesh and Uttaranchal

• Eastern India: Bihar, Jharkhand, West Bengal, Orissa and the North East states

• Western India: Maharashtra, Gujarat, Madhya Pradesh, Goa and others

• Southern India: Andhra Pradesh, Karnataka, Tamil Nadu, Kerala, Pondicherry and others

*As per IDC’s India Quarterly PC Tracker, 2Q 2007, September 2007 release