logo
  Join        Login             Stock Quote

India PC Shipments To Grow Double Digits In 2012

 April 05, 2012 12:58 PM


Driven by emerging markets, global PC shipments are estimated to grow 4.4 percent in 2012. India PC shipments will witness 17 percent growth in 2012, which is somewhat attributable to the Government's programs to provide laptops to students.

Some Indian states have offered laptops to college and higher secondary students as election promises. Tamil Nadu, in the southern part of India, was the first one to make such a promise. Now, Uttar Pradesh, in the northern part of India, has joined to offer this freebie to students.

While estimates are yet to come from Uttar Pradesh, Tamil Nadu is likely to place shipments of 920K units in 2012. Excluding this, India PC shipment is predicted to witness 8.4 percent upside in 2012, data from Gartner suggests. Total PC shipment is predicted to be 12.5 million units.

[Related -8 Stocks to Beat Warren Buffett's Portfolio Return Easily]

A key aspect of the survey is that consumers are not showing enough interest in investing in new and advanced technology, which comes with a premium price. This is because of higher inflation and a surge in living costs. The combo forces consumers to extend the life of their existing computing devices.

The launch of Ultrabooks is not likely to alter the consumers' preference significantly as the Indian PC market is more sensitive to price points than adopting innovative technologies. It will be interesting to see how the Indian market reacts to Windows 8 and whether Ultrabooks change consumer perception.

The current expectation is that tablets will see more adoption than 2011, but will not have any significant effect on PCs. This is due to the fact that tables are used as second or third devices only.

[Related -How the Chinese Slowdown Will Impact Your Investments]

Though commercial spending of large businesses may remain stable, the uncertain worldwide economic condition may soften the trend. Indian budget proposals normally encourage purchasing electronic items, but the current year's proposal of lifting excise duty has dampened the spirit of new consumer demand due to additional price burdens.

While the year 2012 is expected to see global PC shipments growth of 4.4 percent to 368 million units, 2013 is projected to witness an accelerated growth rate of 8.7 percent and PC shipments to reach 400 million.

Global PC markets will be driven by emerging markets in the near and long-term. Developed nations shipments are somewhat slack in the wake of economic sluggishness and the advent of tablet. The matured market may see more replacements than fresh investments. Due to very low PC penetration levels, emerging markets will be the  main focus to drive growth.

Though pricing point holds the key, India offers significant growth opportunities for PC market since the penetration level at the semi urban and urban level is low.

iOnTheMarket Premium
Advertisement

Advertisement


Post Comment -- Login is required to post message
Name:  
Alert for new comments:
Your email:
Your Website:
Title:
Comments:
 

rss feed

Latest Stories

article imageHow the Chinese Slowdown Will Impact Your Investments

Most countries would find a quarterly growth rate of 7.3% a cause for a read on...

article imageHow To Profit From Foreign Investment In Real Estate

Though investors don't always capitalize on it, history has a way of repeating itself. In fact, when I saw read on...

article imageAnother Round Of Upbeat US Macro Reports

The US economy grew faster than expected in this year’s third quarter, according to this morning’s read on...

article imageDistinguishing The Fed's Securities Purchases From Monetary Expansion

There has been a bit of confusion about what today's FOMC announcement means with respect to Quantitative read on...

Advertisement
Popular Articles

Advertisement
Daily Sector Scan
Partner Center

Related Articles:

Gold: The Ultimate Store of Value?
More Articles on: Computer and Technology



Fundamental data is provided by Zacks Investment Research, and Commentary, news and Press Releases provided by YellowBrix and Quotemedia.
All information provided "as is" for informational purposes only, not intended for trading purposes or advice. iStockAnalyst.com is not an investment adviser and does not provide, endorse or review any information or data contained herein.
The blog articles are opinions by respective blogger. By using this site you are agreeing to terms and conditions posted on respective bloggers' website.
The postings/comments on the site may or may not be from reliable sources. Neither iStockAnalyst nor any of its independent providers is liable for any informational errors, incompleteness, or delays, or for any actions taken in reliance on information contained herein. You are solely responsible for the investment decisions made by you and the consequences resulting therefrom. By accessing the iStockAnalyst.com site, you agree not to redistribute the information found therein.
The sector scan is based on 15-30 minutes delayed data. The Pattern scan is based on EOD data.