PC Sales Grow 21% in Brazil. Smugglers Have 35% of Market

Personal computer in Brazil Almost 10 million personal computers (PCs) were sold in Brazil in 2007, an increase of 21.4% over 2006. Sales totaled 8.071 million desktops, growth of 7%, and 1.912 million notebooks, 183% more, according to figures disclosed this week by the Brazilian Electrical and Electronics Industry Association (Abinee).

According to the Abinee study, the company chairman, Humberto Barbato, credits the performance to the law that exempted PCs costing up to 4,000 reais (US$ 2,300) from payment of the contribution to the PIS (welfare tax) and from the Cofins (social security tax), to the good financing conditions on the market and to the fight against the informal market.

The text also shows that a research requested by the Abinee to consultancy company IT Data showed that the informal market is responsible for 35% of the total Brazilian PC market, against 65% of the formal market.

The study also adds that actions by the Federal Police and Revenue Service in December, which resulted in the closing of shops that sold contraband equipment and components, helped restrain the share of the informal market.

The average price of PCs sold in Brazil, according to the Abinee, is dropping and has now fallen to 1,499.00 reais (US$ 850). Equipment worth less than 1,000 reais (US$ 570) answered to 20% of sales in 2007.

For 2008, according to the study, the IT Data research estimates growth of 14% in computer trade. Abinee, however, went further and forecasts an increase of 17% to 11.7 million units, with notebooks answering to 33%. Barbato believes that participation in the informal market should drop to 29%.



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