India's computer market sold 431,000 units in October-December quarter, a marginal 2.3 per cent dip over the previous quarter, although sales are expected to pick-up enabling the industry to "comfortably cross" the targeted 2 million mark for 2002-03.

Notwithstanding the fact that the first three quarters of the fiscal 2002-03 witnessed an increased PC sales over the previous year, the industry performance review by apex hardware association MAIT, noted a disturbing trend that the unorganised sector had made a significant dent in marketshare of branded PCs, a matter of grave concern for the IT industry.

"From 50 per cent in the first quarter (April-June) of the current fiscal, the proportion of the locally assembled PCs has gone up to an alarming 63 per cent in the third quarter (October-December) 2002-03," the review by manufacturers' association for IT conducted for the quarter ended December 2002 has said.

During 2001-02, the overall market for PCs had declined over that of 2000-01, and the organised sector gained market share as assembled players exited PC business, the study said, adding that now with some recovery, several of them were back in business as current market structure facilitated easy exit and entry of the organised segment.

"The organised sector players with long term commitment have ended up being at a disadvantage," it said.

Dwelling upon the performance of the IT industry during the period in reference it said although desktop PC market sales of 431,000 units was 2.3 per cent lower than the previous quarter, the sales were 50 per cent of that in the second half of 2001-02.