PC shipments in India rise by 30 percent on the back of government orders

Bucking the global trend, India PC shipments grew in Q2 2013 to stand at 3.53 million units. The figures released by IDC are telling in a year when PC sales saw a two-decade low in the first quarter. But before we get carried away it must be noted that India’s shipment surge has not come from increased consumer sales. Instead, IDC says ‘State-led manifestos’ drove the shipments. The increase in growth is a substantial year-on-year growth of 24 percent and a quarter-on-quarter increase of little over 30 percent in relation to the previous quarter.

According to Kiran Kumar, Research Manager at the firm, ongoing projects in Uttar Pradesh, Rajasthan, Tamil Nadu and other states have accounted for roughly one third of the total PC market in Q2. Kumar was quick to follow that up with this sobering thought. “The organic demand for PCs in India outside special projects has weakened, which remains a cause of concern for PC vendors. Further, the rupee slide derailed enterprise spending, as the investment decisions remained seemingly delayed across most of the verticals."

HP leads the Indian market by a huge margin

HP leads the Indian market by a huge margin


IDC Market Analyst Manish Yadav said Q2 2013 began slowly due to inventory concerns and due to attractive offers on other consumer devices on the back of the buyback schemes and other discount offers. “June largely reversed this stillness aided by back-to-school campaigns and loading of stocks across partners in preparation to the impending price hike on account of rupee volatility," Yadav said.

In the Indian market, HP is a clear leader and recorded its highest ever quarterly market share cornering an exceptional 34 percent of the market "Though the enterprise PC business was primarily driven by the single largest notebook deal in the state of Uttar Pradesh, the vendor also led the consumer PC business in India with their well established channel network and incentive programs tied with their effective pricing strategies," added Kumar.

Dell took the second position with a share of 11 percent, while Acer took third with a market share of 10.4 percent. IDC says Q3 has historically been a strong time for PC vendors in India due to the festive season.

However, IDC’s Yadav ended on a cautionary note saying the Indian PC markets are thriving on wafer-thin margins. Yadav also made it a point to say that new form factors such as hybrids and two-in-ones have not had as much impact as previously expected. “Outside special projects, demand from enterprises and government remain largely suppressed painting a gloomy scenario on commercial PC business, in the near future," he said.


Published Date: Aug 28, 2013 15:51 PM | Updated Date: Aug 28, 2013 15:51 PM