Monday, October 09, 2006

PC Market in India Update

There are ten vendors in the branded space. HP, Acer, AMD, Dell, Zenith, LG, HCL and so on are some of the well known players. Xenitis in Kolkata and Sogo in Bangalore are strong regional players. The market share of branded PC's has increased from 50 percent to 70 percent over the last couple of years whereas the market share of assembled PC's have come down to about 30 percent. This market share is likely to stabilise over the coming years. Rationalisation of duties has narrowed the price gap from 37 to 40 percent that assemblers enjoyed in 2000-01 to under 14 percent in 2005. Today an average branded PC in India is priced in the range of 22K to 25K.An advantage working on the side of assemblers is that they are innovative and flexible in their offerings. Studies show that upto 75% of the cost of the PC has to be spent on the PC after purchase. For branded PC's this figure can be brought down to 40%.

A brand will always remain a brand.

No comments: