Rediff On The Net, Infotech: Season's grieving


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October 28, 1997

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Season's grieving

The computer industry is digging in for a winter of discontent.

The captains of the computer industry have stopped mincing words: "Our industry is sustaining itself on the small and medium enterprises sector." With corporate houses clipping IT investments to ward off the wolf at the door, the computer industry's biggest market has come crashing down.

The liquidity crunch, which has held the Indian economy hostage for almost eight months now, has dug its teeth deep into the computer industry, which

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according to estimates, has grown less than 15 per cent in the first half of 1997-98 over the corresponding period the previous year.

Last year, the first half itself showed a 21 per cent growth rate over 1995-96.

Traditionally, the first two quarters, April-June and July-September are duller. The October-December and January-March periods normally take the burden off the first half and hoist good growth in the end.

However, this time round, the industry is not optimistic, going by its experience last year when the OND and JFM quarters threw up a pathetic 23.12 per cent and 33.18 per cent growth rates, respectively, taking the overall industry turnover to Rs 134.34 billion.

While the industry is busy working out the current year's JAS results, its AMJ performance has succeeded in drawing sympathetic noises.

According to International Data Corporation, India, PC shipment grew by just 26 per cent in JAS even as the average street price slid by 21 per cent over the same period last year. Total PC sales in AMJ are estimated at just over 118,000 units, bringing in a revenue of close to Rs 6.72 billion.

Early estimates for the full first half put the total sales of PCs at not over 250,000 units.

The sales target for the entire personal computer line-up in financial 1997-98 is about 636,000 units.

On the networking front, the April-June quarter has not been good at all. According to IDC estimates, the networking products, comprising NCs, hubs, switches and routers, slid by 7 per cent on an year-to-year estimate and 2 per cent over the last year.

Earlier: Trouble in paradise

- Compiled from the Indian media

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