Thursday, July 22, 2010

Dell Overtakes HP in India

For as long as we could recall, (five years to be precise) HP was leading the PC sales in India when it came to the organized market. It has been consistently selling more PCs than any Indian or foreign company - until now.

HP's Indian dream run has been cut short by Dell who sold more computers in India than HP for the very first time. That's right! According to a report in the DNA, Dell sold around 3.53 lakh PCs in the June quarter compared to 3.31 lakh by HP.

Dell's growth is remarkable considering it was trailing HP by over 1.5 lakh units in annual sales just a year ago. Not long ago, research firm IDC had also noted that HP fell behind Dell in the notebook sales department as well. When Dell first arrived in India, it was using a Direct To Home method of selling its products. However, Dell quickly realized that for it to make any mark in the Indian market it will have to trudge the "traditional" sales path wherein Dell products would have to made available in stores as well. Soon after Dell arrived in India stores, its cut throat pricing vis-a-vis other brands seems to have worked wonders.

In India, Dell now has a market share of 14.3 percent in the overall PC market last quarter, followed by HP with 13.4 percent and Acer with 11 percent.

While HP might be left behind in India, on the global front, Dell still plays second fiddle to HP. Until 2006, Dell was the world's no.1 PC maker until HP overtook it. Bad news followed when Acer pushed Dell to the third place a few years later. Dell has managed to pull itself back though and has now regained its world no. 2 spot by pushing Acer down the order.

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