The Hindu : Grey market share declines in PC sales

Online edition of India's National Newspaper
Friday, Feb 13, 2004

Business

Business

Grey market share declines in PC sales

By Our Staff Reporter

BANGALORE, FEB. 12. PC shipments for 2003, compiled by the market research group Gartner, show the share of the `grey market' has declined year-on-year in India, as annual computer sales grew 19.5 per cent to over 2.5 million.

Of this the share of the grey segment declined from 73.95 per cent in 2002 to 68.70 per cent in 2003, a negative growth of over 7 per cent. At the same time, multinational companies posted modest to good increases in sales driven by increased buying from their main customer — the banking and financial sector. Government projects and other multinationals expanding their presence in the country have also helped, Gartner says.

Hewlett Packard maintained its lead in the market, taking a 9.6 per cent share, a marginal rise from 8.9 per cent in 2002.

The company's concentration on the small and medium businesses is "paying off,'' the study says. HCL (9.1 per cent) and IBM (6.4 per cent) take the next slots, posting increases in sales.

The regional player, Zenith, maintained its little under 3 per cent market share. From the products end, desktop sales increased by 18 per cent and 71 per cent more notebooks were sold. India garnered an 8.64 percent market share in the Asia Pacific region excluding Japan, where some 29.7 million computers (desktops, laptops and servers), were sold in 2003.

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