Computer Global Market
Insights and Opportunities
Overview: Multinational-Corporation (MNC) Personnel Computer (PC) brands have overtaken the local Indian PC brands in terms of sales, growth rates and marketing activities. Indian vendors like HCL, Zenith, Wipro and PCS accounted for only 14% of the Indian desk-based PC market and six percent of the Indian mobile-PC market in the fiscal year 2007-08.
The Indian PC market is divided among three different groups: MNCs, local brands and white box vendors. Although local brands grew at a steady pace the past few years, they were way behind the growth rates seen by MNC brands. Indian vendors' shipments grew 18% in 2008 and 35% in 2007, while MNC shipments grew 73% in 2008 and 50% in 2007. Unable to withstand the pressure of the marketing blitz and the reach of the MNC brands, the local brands have almost exited the consumer segment and are rethinking their strategies to focus on the government, education, and small and midsize business (SMB) segments. Gartner estimates that the mobile-PC segment in India, which has been growing at 74%, will see little traction by local brands. MNC brands dominate this niche yet high margin segment with 94% per cent market share.
Opportunities: The Indian computer and peripherals market is expected to continue to expand to meet local demand. High growth areas like telecommunications, banking and financial services, manufacturing, retail, and Business Process Outsourcing (BPO)/IT-enabled services are the major consumers of computers and peripherals.
The price-sensitive computer hardware market has responded positively to a drop in prices, especially at the entry-level. Private sector firms, government offices, small and medium-sized enterprises (SMEs), and small office home office (SOHO) users also continued to computerize their operations, contributing to the growth of the computer hardware market. With a rapidly expanding usage of internet, the Indian Information Technology industry is expected to continue its high growth rates in the coming five years catering to both domestic and export markets.
The promising sub-sectors with the estimated market size for the year 2009-10 are: Notebooks USD $3030 million; Servers USD $1536 million; Peripherals USD $2779 million & Desktops USD $4350 million. Significant opportunities exist for U.S. companies to supply high-end computers, servers, and peripherals to India. U.S. companies such as HP, Dell, Cisco, GE, Lucent Technologies, Hughes, and Motorola are already in India selling computers.