PC vendors pin their hopes on India

PC shipments across the world including India declined quite significantly during the last two quarters, an offshoot of the global financial meltdown. However, that has not dampened the spirit of the PC vendors regarding the opportunities that emerging markets like India still hold.

A report by MAIT, the apex body that represents the hardware sector in India, said the total PC sales between October and December 2008 stood at 1.4 million units, registering a decline of 19 per cent over the same period last fiscal. This included both desktop computer and notebooks segments. The report stated that given the current macro-economic conditions and the buying sentiment in the market, PC sales for 2008-09 were expected to remain at the same levels as in the last fiscal at 7.3 million units.

A recent report by analyst firm Gartner stated that the PC shipments worldwide had declined 6.5 per cent to 67.2 million units in first quarter of 2009. The report, however, said that despite the global meltdown, the Asia Pacific region was relatively less affected. This was because the home market was comparatively less affected as vendors were “aggressive in stimulating demand by adjusting prices downward, bundling promotions, and conducting road shows targeting the market.”

During the first quarter of 2009, PC shipments in the Asia Pacific region saw a decline of 5.5 per cent, said the report. Major international PC vendors including HP, Dell and Lenovo have increased their focus on the Indian market by launching products suitable for the Indian consumers and the enterprises. Despite being under pressure due to the fall in demand of PCs, Indian players like HCL and Wipro have launched many a new products targeting specific segments in the Indian market. The strategy is expected to help them in the period of recession and even when the revival happens.

Anticipating softness in the demand in its tradition markets, world’s second biggest computer maker Dell has now increased its focus on emerging markets including India, China, Brazil and Russia.

Last quarter, the company rolled out its first brand campaign in India roping in real life business heros and entrepreneurs to endorse its products, targeting the SMBs. This is in a slight change in its marketing strategy, which was earlier largely focused on the large enterprises. According to Mark Jarvis, chief marketing officer, Dell, the company feels that despite the softness in demand, the economic slowdown can also be an opportunity for the company.

“Dell is a well-known brand in India, but among the SMBs we are not the brand leader. Our campaign will convey the SMBs the stories of real life Indian business heros who have used IT and have become successful in their own business,” said Jarvis.

Wipro for example, recently launched its e.go range of cheaper but stylish notebooks. The company said even though it knew how the global meltdown had impacted every walks of life, it did not change the plans to launch the notebooks.

HCL Infosystems, the hardware business of HCL Enterprise, too launched a new range of laptops under the ‘Leaptop Series 39’. The laptops are designed for Indian climatic conditions, where the ambient temperatures are higher and the surface temperature of laptops tend to become uncomfortable.