Idc Blames Credit Squeeze For Slowdown In Hardware Industry
The International Data Corporation (IDC-India) has blamed the credit squeeze and political uncertainty for the drop in the growth of the domestic hardware market from 42 per in 1995-96 to 13 per cent in 1996-97. However, it has predicted an improved growth in the next financial year.
With the improvement in the credit situation and the information technology-friendly budget, IDC expects the hardware market to grow by 24 per cent in 1997-98 to Rs 6,230 crore, up from the current level of Rs 5,030 crore.
IDC is an US-based information technology research and consulting organisation.
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The domestic IT market is expected to touch Rs 11,740 crore in 1997-98, implying growth of 28 per cent.
The growth rates in the domestic IT industry, which includes hardware, software and services, declined to 20 per cent in 1996-97 from 53 per cent in the preceding year, as a result of the decline in the hardware sector.
Political uncertainty led to postponement of investment decisions, IDC vice president Ravi Sangal said here, adding that the price-war in the hardware market contributed to the drop in value growth.
This resulted in a decline in the relative hardware market share from 58 per cent in 1995-96 to 55 per cent in 1996-97.
IDC expects this decline in hardware market share to continue, the market research and consulting organisation said.
Personal computer (PC) shipments in the home/Soho (small office home office) segment will grow by 70 per cent in 1997-98, Sangal said, while detailing the key trends in the IT industry.
According to the IDC survey, which is limited to the branded products in the market, 117,000 PC units were shipped in the home/Soho segment in 1996-97, and this is expected to go up to 197,000 in 1997-98.
Pertech Computers leads the branded desktop market with 13 per cent share, followed by HCL-HP (11 per cent), Wipro-Acer (eight per cent), and Compaq and Zenith with six per cent market share each.
The portable PC segment, which is still unaffordable for many is dominated by IBM, with a market share of 22 per cent, followed by Compaq (18 per cent), Wipro-Acer (10 per cent), Toshiba (eight per cent) and Apple (three per cent).
Referring to the latest fad in the corporate world, `Intranets or company wide networks using Internet tools, which may or may not be connected to the Internet, Sangal said that while the intent to implement Intranet is high deployment will be limited in 1997-98, due to various constraints.