BOOSTING PC PENETRATION
Nearly 90 percent of Indians have no access to a PC, and yet sales continue to decline while local manufacturers struggle. What's wrong? How do we set things right?
While the PC market is declining globally, and several mature economies are seeing a decline in their IT markets, India is still to realize the true potential of IT. Since less than 10 percent of its population has access to a PC, India ranks the lowest among even countries with similar socio-economic characteristics—lower than even countries such as Sri Lanka and Vietnam. The other BRIC countries too are much ahead of India with Brazil at 45 percent, Russia at 57 percent and China at 35 percent.
An estimated 80 percent of Indian IT channels are directly dependent on the fortunes of the PC market. “Many retailers and resellers have been hit hard over the past few quarters because of the slowdown in the PC market. While we have been recommending that they switch to selling tablets and smartphones, many have not been able to make the transition successfully,” says Suresh Pansari, MD, Rashi Peripherals.
According to estimates by the All Kerala IT Dealers Association (AKITDA), the channels provide employment to nearly 4,00,000 people, many belonging to the lower economic strata of society. “A growing IT industry and a healthy PC market are essential for the survival of many in the partner ecosystem. Unfortunately, we are so fragmented that our collective voice does not reach the decision-makers,” says Toshy Mathew, Vice President, AKITDA.