The Telegraph
Since 1st March, 1999
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Healthy recovery in PC sales

New Delhi, Oct 21: The computer hardware market is projected to grow by 15 per cent during 2002-03.

In the PC market, banks, educational institutes, government purchases, infotech and infotech-related companies have provided the recovery thrust to the hardware manufactures and vendors. While in the household segment, reduced prices coupled with increased selling efforts- schemes/ promotions/loans have been instrumental in bringing in the recovery.

Replacement demand in PCs is also expected to enhance growth in this market. New technology and new features, application better suited to run on latest machines are likely to drive replacement market.

MAIT, the apex body representing the hardware, training and research and development services sectors of the IT industry in the country, today announced the findings of its first-ever quarterly industry performance review for the quarter April-June of financial year 2002-03.

Commenting on the findings of the study, Vinnie Mehta, executive director of MAIT, said, “Being the first-ever efforts to map quarterly tends in the industry, year-on-year comparisons have not been possible, however, the finding lend themselves to identify significant trends in buying and usage pattern.”

The signs of recovery is reflected in desktop PC sales growing by 63 per cent in the first quarter of the financial year 2002-03 over the first half of 2001-02.

With sales in almost all product categories amounting to two-thirds of that sold in the last financial year, the trend seems to be positive with PC sales leading at 5.08 lakh units during the first quarter of 2002-03. During financial year 2001-02 the computer hardware market had sold 1.65 million PCs.

The financial year 2000-01 had been marked with severe recessionary trend in the Indian economy, which had adversely impacted the hardware market.

In the first quarter of 2002-03, desktop PCs, notebooks, dot matrix printers, laser printers have registered sales of close to two-third of their sales during the first half of 2001-02. Products like servers, ink jet printers, and UPS have registered about 50 per cent of the sales during first half of 2001-02.

According to MAIT, typically, the July-August-September (JAS) quarter is usually characterised by higher sales than April-May-June (AMJ), thus the sales of infotech products in the first quarter of 2002-03 is expected to comfortably exceed that in the same period of 2001-02.

“Though the entire country witnessed an economic slowdown last year, with signs of economic recovery this year, the infotecdh market is expected to perform better. However, to ensure that information technolgy reaches grassroots levels in India, there is a pressing need to bring down the prices of IT products,” Mehta added.

MAIT has recommended bringing down all local levies—excise duty and sales tax—to this effect.

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