PC SALES SOAR: SURVEY

Bangalore
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Computer sales jumped 20 percent last year, led by laptops, as falling prices prompted more consumers to log in and companies accelerated automation, a survey said Wednesday.

Personal computer sales rose to 6.5 million in the year ended December, from 5.4 million in 2006, according to the survey by the market-research firm IDC India.

Notebook PC sales surged to 1.8 million, from 980,000, as prices that fell below Rs20,000 rupees ($500) made laptops the favoured choice of young first-time buyers.

“Notebooks are reaching out to more people because of the falling price point, portability and the power back-up option they offer,” Piyush Pushkal, manager of PC Research at IDC India, said in an interview.

“Usage of computers in the education space is increasing,” he said. “You can see young students carrying computers to college these days, which is a new trend.”

An economy that has expanded at an average annual rate of 8.6 percent in the past four years has put more money in the pockets of urban Indian consumers, who are splurging on consumer durables including mobile phones and computers.

Businesses from large banks to small groceries are upgrading computer systems to cut costs and stay competitive while the government is contributing to PC sales by stepping up the automation of its departments.

The world’s biggest business management software maker, Germany’s SAP, said earlier this month that India is its fastest growing market after more than doubling customers to 3,000 in 2007, from 1,350 at the end of 2006.

“There is a lot of expansion happening in the information technology sector; banks are opening new branches and organised retail is coming up,” Pushkal said. “That’s because of the overall economic growth.”