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Press Release - March 27, 2009 
 
India PC market shipments flat in CY 2008 at 7.98 million units

Over 1.56 million PCs shipped in 4Q 2008, a 22.7% year-on-year drop

Home and SMB sectors hold out a ‘ray of hope’ for hardware industry 

Government and Public Sector to remain ‘bright spots’ in the 
commercial PC market

Mumbai, March 27, 2009 
The overall India Client PC market shipments remained flat at 7.98 million during January-December 2008 against 8.06 million in 2007. For CY 2008, desktop PC shipments dropped 10.1%* while notebook PC shipments recorded a growth of 31.5%* on a year-on-year basis. 

Table 1: India PC Shipments and Growth by Form Factor: CY 2008 over CY 2007*
Form Factor CY 2007 in ’000s CY 2008 in ’000s Growth 2008 over CY 2007
Desktop PCs 6,303 5,664 -10.1%
Notebook PCs 1,760 2,315 +31.5%
Total Client PC 8,063 7,979 -1.0%
*According to IDC’s India Quarterly PC Tracker 2008, 4Q 2008, March 2009 release

During the October-December 2008 quarter (4Q 2008) the overall India Client PC shipments were 1.56 million units, a drop of 22.7%* over the same period previous year. The desktop PC shipments dropped 24.7%*, while notebook PC shipments recorded a 17.4%* degrowth (4Q 2008 over 4Q 2007).

Table 2: India PC Shipments and Growth by Form Factor: 4Q 2008 vs. 4Q 2007*
Form Factor 4Q 2007 in ’000s 4Q 2008 in ’000s Growth (4Q ’08 over 4Q ’07)
Desktop PCs 1,473 1,109 -24.7%
Notebook PCs 549 454 -17.4%
Total Client PC 2,023 1,563 -22.7%
*According to IDC’s India Quarterly PC Tracker 2008, 4Q 2008, March 2009 release

During the fourth quarter Hewlett-Packard retained the top spot in the overall India Client PC (Notebooks and Desktops combined) market with a market share* of 15.6% by unit shipments. Dell dislodged HCL from the second spot with an 10.9% share, while HCL was third with 9.6% of total PC shipments.

In terms of desktop PC shipments during 4Q 2008, HP and HCL were tied at first position with a market share* of 10.6% each, while Dell ranked third. In terms of notebook PC shipments during 4Q 2008, HP retained the top spot with a reduced market share* of 27.6% followed by Dell at the second spot while Acer came in third.

Table 3: India Client PC (Desktop + Notebook) Shipments: Top 3 Vendor Market Shares (% of units), 4Q 2008 vs. 4Q 2007*

4Q ’07 Client PC Shipments
(Notebook PCs + Desktop PCs)

4Q ’08 Client PC Shipments
(Notebook PCs + Desktop PCs)
Vendor Market Share Vendor Market Share
Hewlett-Packard 17.6% Hewlett-Packard 15.6%
HCL 10.8% Dell 10.9%
Lenovo 8.9% HCL 9.6%
*According to IDC’s India Quarterly PC Tracker 2008, 4Q 2008 quarter, March 2009 release

“The Home and SMB segments recorded the lowest drop (in percentage terms) in CY 2008 vis-à-vis CY 2007. The measures announced by the RBI to free up credit are expected to revive demand from these segments and a moderate recovery in shipments may result during the second half of CY 2009,” said Sumanta Mukherjee, Lead Analyst, Computing Products Research, IDC India. 

“The industry is also resting its hopes on the infrastructure, public sector spending and e-Governance and development projects,” Sumanta added.

“Despite these measures, CY 2009 could still see a drop in overall India Client PC shipments. Judicious inventory management, coupled with marketing initiatives to explore the hitherto untapped ‘long tail’ of customers in the Indian heartland could be the key to survival in a tough year,” opined Kapil Dev Singh, Country Manager, IDC India.

– ENDS –

About IDC
IDC is the premier global provider of market intelligence, advisory services, and events for the information technology, telecommunications, and consumer technology markets. IDC helps IT professionals, business executives, and the investment community make fact-based decisions on technology purchases and business strategy. More than 1,000 IDC analysts provide global, regional, and local expertise on technology and industry opportunities and trends in over 100 countries worldwide. For more than 44 years, IDC has provided strategic insights to help our clients achieve their key business objectives. IDC is a subsidiary of IDG, the world's leading technology media, research, and events company. You can learn more about IDC by visiting www.idc.com.

About IDC India
IDC (India) Ltd., set up in 1987 is an ISO 9001:2000 company. IDC (India) Ltd., a subsidiary of CyberMedia, is regarded as the country’s most comprehensive, dependable and respected source for market intelligence and consulting in the fields of IT, telecommunications and consumer technology. With its head office at Gurgaon (near New Delhi), the company has branches in Bangalore, Chennai, and Mumbai. Additional information about IDC India's research, advisory and Go-To-Market service offerings can be found at www.idcindia.com.

For media inquiries, please contact: 
Sanjiv Kataria, Strategic Communications & PR
+91-9810048095, sanjiv.kataria@gmail.com

Vishaal Bhatnagar, Associate VP, IDC India 
+91-9810191634, vbhatnagar@idcindia.com