X

Sign up for Equitymaster's free daily newsletter, The 5 Minute WrapUp and get access to our latest Multibagger guide (2017 Edition) on picking money-making stocks.

This is an entirely free service. No payments are to be made.


Download Now Subscribe to our free daily e-letter, The 5 Minute WrapUp and get this complimentary report.
We hate spam as much as you do. Check out our Privacy Policy and Terms Of Use.
PC Industry: Strong growth - Views on News from Equitymaster
 
 
  • PRINT
  • E-MAIL
  • FEEDBACK
  • A  A  A
  • Aug 10, 2001

    PC Industry: Strong growth

    According to the figures released by MAIT (Manufacturers Association of Information Technology), the PC industry for FY01 showed a growth of 34% in volume terms and 26% growth in value terms. This is due to the fact that average realisation per PC came down by 5.7%. However, the trend was slightly different for the Notebook market. While the volumes grew by 26% revenues grew by 36% on the back of a significant 20% jump in realisations.

      Units Value (Rs bn)
      FY00 FY01 Change FY00 FY01 Change
    Desktops 1,405,290 1,881,640 34% 49 62 26%
    Notebooks 41,670 52,376 26% 4 7 52%
    Realisation/PC (Rs) - - - 34,683 32,700 -5.7%
    Realisation/Notebook (Rs) - - - 103,912 125,248 20.5%

    This difference in price trend could be attributed to the fact that in the PC markets, the unorganized sector is dominant with a 53% market share. But since manufacturing of notebooks is far more technology intensive the only large brands like Compaq, IBM are present in this markets. However, the market share of the unorganized sector declined to 53% compared to 58% in FY00. The major gainers were the MNC brands that increased their market share from 23% to 27%. The Indian brands gained just 1%, increasing their market share to 20%.

    The growth estimated by MAIT for the FY02 is 30% in volumes terms (for desktops). However, the growth in value terms would be lower as the price war between the unorganized and organised sector would continue. But the most interesting trend that was seen was that for FY01 the household market grew faster by 45% (in values terms), compared to 31% for the business segment. This has increased the share of household purchases from 20.5% in FY00 to 22% in FY01.

    As realisations continue to drop the key differentiator in the PC markets is slowly becoming the quality of service offered by the vendors. This is where the unorganized sector is not able to compete with the organised sector. Not that the unorganized sector is not growing, infact it has almost doubled its size compared to FY00. MNC and Indian brands on the other hand are growing at a faster pace.

    Internet usage continues to grow strongly, with the growth of PCs. According to the numbers from MAIT, 54% of the households having PC in FY01 had Internet connections. The CAGR in home connections for Internet in the past 5-year has been a significant 215%. For FY01 the growth was 73%. The share of the households at 55% for Internet connections was larger than 45% share of business segment. This could be due to the fact that for companies a single connection is distributed over users.

    For the first four month of FY02, the PC sales have been sluggish and major vendors have reported a drop in sales. The vendors are hopeful that the events that could accelerate the demands could be the launch of Pentium IV processors by Intel and Microsoft’s XP. However, since India is predominately a price driven market the impact could be lower than anticipated.

     

     

    Equitymaster requests your view! Post a comment on "PC Industry: Strong growth ". Click here!

      
     

    More Views on News

    Tech Mahindra: Our Revised View (Quarterly Results Update - Detailed)

    Aug 2, 2017

    A better than expected turnaround in performance results in a change in view.

    Wipro: A Decent Start to the Year (Quarterly Results Update - Detailed)

    Jul 27, 2017

    Digital services drive growth for Wipro in 1QFY18.

    Infosys: A Decent Start to FY18 (Quarterly Results Update - Detailed)

    Jul 14, 2017

    Infosys starts FY18 on an encouraging note with a stable performance.

    Ankit Shah's First Five Insider Recommendations (The 5 Minute Wrapup)

    Aug 5, 2017

    How to get exclusive insider recommendations from Ankit Shah.

    TCS: Currency Volatility Plays Spoilsport (Quarterly Results Update - Detailed)

    Jul 14, 2017

    TCS starts FY18 decently despite an adverse currency impact.

    More Views on News

    Most Popular

    Demonetisation Barely Made Any Difference to Tax Collections(Vivek Kaul's Diary)

    Aug 7, 2017

    The data tells us quite a different story from the one the government is trying to project.

    Proxy Plays: A Smart Way to Bet on 'Off Limits' Companies(The 5 Minute Wrapup)

    Aug 4, 2017

    The small-cap space is full of small players that are clear proxies to great growth stories and Indian megatrends.

    Should You Invest In Bharat-22 ETF? Know Here...(Outside View)

    Aug 8, 2017

    Bharat-22 is one of the most diverse ETFs offered so far by the Government. Know here if you should invest...

    Signs of Life in the India VIX(Daily Profit Hunter)

    Aug 12, 2017

    The India VIX is up 36% in the last week. Fear has gone up but is still low by historical standards.

    7 Financial Gifts For Your Sister This Raksha Bandhan(Outside View)

    Aug 7, 2017

    Raksha Bandhan signifies the brother-sister bond. Here are 7 thoughtful financial gifts for sisters...

    More
    Copyright © Equitymaster Agora Research Private Limited. All rights reserved.
    Any act of copying, reproducing or distributing this newsletter whether wholly or in part, for any purpose without the permission of Equitymaster is strictly prohibited and shall be deemed to be copyright infringement.

    LEGAL DISCLAIMER: Equitymaster Agora Research Private Limited (hereinafter referred as 'Equitymaster') is an independent equity research Company. Equitymaster is not an Investment Adviser. Information herein should be regarded as a resource only and should be used at one's own risk. This is not an offer to sell or solicitation to buy any securities and Equitymaster will not be liable for any losses incurred or investment(s) made or decisions taken/or not taken based on the information provided herein. Information contained herein does not constitute investment advice or a personal recommendation or take into account the particular investment objectives, financial situations, or needs of individual subscribers. Before acting on any recommendation, subscribers should consider whether it is suitable for their particular circumstances and, if necessary, seek an independent professional advice. This is not directed for access or use by anyone in a country, especially, USA or Canada, where such use or access is unlawful or which may subject Equitymaster or its affiliates to any registration or licensing requirement. All content and information is provided on an 'As Is' basis by Equitymaster. Information herein is believed to be reliable but Equitymaster does not warrant its completeness or accuracy and expressly disclaims all warranties and conditions of any kind, whether express or implied. Equitymaster may hold shares in the company/ies discussed herein. As a condition to accessing Equitymaster content and website, you agree to our Terms and Conditions of Use, available here. The performance data quoted represents past performance and does not guarantee future results.

    SEBI (Research Analysts) Regulations 2014, Registration No. INH000000537.

    Equitymaster Agora Research Private Limited. 103, Regent Chambers, Above Status Restaurant, Nariman Point, Mumbai - 400 021. India.
    Telephone: +91-22-61434055. Fax: +91-22-22028550. Email: info@equitymaster.com. Website: www.equitymaster.com. CIN:U74999MH2007PTC175407
     

    Become A Smarter Investor In
    Just 5 Minutes

    Multibagger Stocks Guide 2017
    Get our special report, Multibagger Stocks Guide (2017 Edition) Now!
    We will never sell or rent your email id.
    Please read our Terms

    S&P BSE IT


    Aug 16, 2017 (Close)

    S&P BSE IT 5-YR ANALYSIS

    COMPARE COMPANY

    MARKET STATS