Price cuts boost notebook sales

The recent price-cuts in notebook PCs have led to spiralling demand. According to market research firm IDC's quarterly report on the Indian PC market, the segment grew a whopping 176 per cent during the quarter ended September. More tellingly, the third quarter also saw 50 per cent more sales vis-a-vis the previous quarter sales.

With major manufacturers like HP (Compaq), Zenith and Lenovo having cut prices in the range of 30-60 per cent during the last one year, IDC said consumers are increasingly opting for notebook PCs owing to their rising productivity and the convenience of use, compared to desktops.

However, Piyush Pushkal, senior analyst with a Gurgaon-based firm, said it is not just the retail consumers who are going in for the slim and sleek notebooks, worldwide notebook is emerging the preferred workstation.

Not just of large enterprises, but also of smaller businesses, which have suddenly discovered the erosion of the price-barrier that previously separated the two categories. Pointing to the shift, sales of desktops to businesses increased by just 1 per cent from the previous quarter.

"The momentum in the Indian notebook PC market is in sync with the worldwide trend of acceptance in the small and medium business segment," Pushkal said, adding that "and this has been well supplemented by bulk purchases by large enterprises."

Indians seem to have regained their love for MNC brands, particularly since the quarter under review saw big brands like HP and IBM (Lenovo) drop prices to 'desi' levels. The former, which was anyway the market leader, gained further to end up with a mammoth 42 percent share in volumes.

Lenovo, which had brought down its 'Thinkpad' prices to around the Rs 40,000 mark, came in second while the original 'price-warrior' Acer retained a share of 18 per cent in India's laptop market. Another MNC brand that grew significantly during the period was Toshiba, IDC said.

Though less spectacular, the desktop segment, particularly those aimed at the retail consumers, too grew by around 40 percent during the quarter. Compared to the previous quarter, volumes increased 18 percent.

Though HP, with its dominant presence in the note-book segment, was number one in over-all PC sales in India, it was HCL which was the most preferred brand for home consumers for desktops.

LG, yet to make an impact in the notebook segment, was however able to secure the third slot in the market which is overwhelmingly dominated by the white-box or assembled products.