High inflation affected PC sales in India: Gartner

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SME Times News Bureau | 26 May, 2012
High inflation and increased prices during the first quarter of 2012 affected sale of personal computers in India, research firm Gartner Inc said Friday.

"Consumer buying accounted for 47 percent of total PC sales in the first quarter of 2012, which is down 3 percent from the fourth quarter of 2011," said Vishal Tripathi, principal research analyst at Gartner.

"This underlies the fact that high inflation and increased prices have forced users to either prolong the life of their devices or postpone their purchase decision. The increase in excise and import duties also played a part in decision-making post-ponement," he added.

The combined desk-based and mobile PC market in India grew 6.6 percent to 2.8 million unit during the quarter under review.

White boxes, which accounted for 45 percent of the overall desktop market, declined 20 percent in the first quarter of 2012 in comparison to the first quarter of 2011. Mobile PCs, with a 27 percent increase from the first quarter of 2011, helped drive overall market growth.

Multinational brands contributed to more than half of the total PC shipments in the first quarter of 2012, with shipments from Acer, Dell, HP and Lenovo, the top four vendors, representing 54.5 percent of the market.

The partial execution of an order of the Tamil Nadu government order helped Lenovo's PC shipments grow 64 percent and the firm managed to become the market leader during the quarter under review with 14.9 percent market share.

HP's PC shipment grew 21 percent, whereas Dell's declined 11 percent as compared to the first quarter of 2011.