t the peak of the dotcom boom, many self-employed computer engineers and diploma holders (along with a handful of self-styled geeks with a knack for computers) made a packet by selling locally assembled computers at a price way below what the branded vendors were offering. Today, though the local PC assemblers are pretty much around, the branded PC segment has emerged from its slumber, and is working overtime to close the gap with assembled PCs. With help, of course, from falling prices (due to cuts in excise and import duties in 2004), coupled with attractive entry level offerings.

The decline of the assembled PC market is nothing short of breathtaking. Back in 2002, assembled desktop PCs had a 70 per cent share of the desktop market, according to IDC. This dropped to 64 per cent in 2003 and in 2004, it fell to 51 per cent (total desktop market in 2004: 3.2 million units). In the consumer (home) PC market, however, the assembled PC is still much bigger than branded PCs, though the share has dropped from 70 per cent in 2002 to slightly less than 55 per cent at the end of 2004.... more