Vizag sees a boom in PC sales

Vizag (Visakhapatnam) is doing brisk business in personal computers’
sphere. Over the last two months, the market has witnessed a sudden spurt in PC
sales, thanks to the growing home segment. According to local resellers, there
is more than 30 percent growth in PC sales in the last couple of months with
branded computers finding a good marketshare. However, the market is worried
whether the momentum will continue in the coming months or it is just a
temporary phenomena. Meanwhile, the change in government at the State level is
also concerning the market players as to how proactive the new government will
be in IT and related activities.

"Buoyed by the recent duty cuts and tax exemptions, the market is
reacting positively since PC prices have come down. Today, branded computers are
available for an unbelievable price and now, buyers prefer a branded product as
it gives peace of mind and satisfaction in terms of after sales service. Home
segment is the prime driver of the recent growth and we expect lot of
educational institution orders to come in the following months. Our company is
engaged in conducting regular roadshows to tap the business opportunity and our
PC sales have jumped by 50 percent in the last three months," said KV
Suresh Kumar, Director, Innovative Information Technology, a leading reseller in
the city selling only branded products like Compaq, HCL and IBM.

"Compaq Presario PCs are doing well compared to HP because of the low
price. However, we have to wait and see whether the latest trend of increased PC
buying will continue for long," said DL Vani, Sales Executive, Computer
Horizons, an exclusive partner for HP.

"Vizag is a market with a sales of 1,300 to 1,500 PCs every month.
Earlier, the branded ones constituted only 25-30 percent but now, in the last
two months, the sales has grabbed 40 percent marketshare and soon the ratio will
change with branded PCs outgrowing the assembled ones. Today, a premium brand
like HCL is available for Rs 17,650 and students are feeling PC is a must at
everyone’s home for educational purpose," said Anand Narla, Chief
Executive, Pioneer Marketing Corporation. When asked about whether the change of
government will in any way affect the market, he replied, "the economy is
doing well and buying power of the home segment has increased so it would not
affect the business".

Meanwhile, Vizag is growing as a corporate base and more new projects are
expected to drive the IT growth in the region. "Vizag has a right mix of
home, SOHO, SME, corporate and government segments. Recently, HSBC has announced
its major call center facility in Visakhapatnam employing over 2,000 candidates.
The first phase of the project has started and it will bring significant
business to the local market. Meanwhile, government orders are expected in the
next quarter and all segment are doing well here," said P Shriram, CEO,
Microcare Computers Pvt Ltd.

However, CH Surendra, Director of CA&S Solutions (P) Ltd, denied the
reports saying business is as usual. "We don’t see any change and in
fact, there were no corporate orders in April and this month. home segment is
also doing okay."

"There is growth but it is not more than 20 percent, for us. The home
segment may be doing well because of the summer vacation where most people would
like to spend on buying a PC to keep their children engaged in learning
activities. This year, there is a clear shift in buyers who prefer to buy
branded against the assembled PCs," said A Sreenivasa Rao, Director,
Meghana Systems. "Due to elections, many government orders were put on hold
and now, whether the new government will process these or not is the million
dollar question on everyone’s mind," he added.

S Gopikrishna

Chennai