India's PC market bounces back in Q2: Regional highlights [Infographic]

IDC observes a striking increase in overall consumer spending on PCs in the past few months starting June and forthcoming festive season is only expected to boost the growth further. The Indian PC market stood at 2.55 million units in Q2 2014 with top 5 states contributing 62.3 percent of the overall market.

[caption id=“attachment_100685” align=“aligncenter” width=“209”] IDC[/caption]

“This growth is primarily driven by manifesto driven state government deals for students such as the one noticed in Tamil Nadu (ELCOT-III) in CY 2014. In addition, end user buying sentiments have improved, post the elections in Q2 2014,” IDC stated.

[caption id=“attachment_100686” align=“aligncenter” width=“483”] IDC[/caption]

PC market in North India witnessed a marginal sequential (quarter-on-quarter) drop of 0.8 percent in terms of unit shipment and a year-on-year drop of 61.6 percent in Q2 2014. Top 3 vendors in the region are HP (27.2%), Dell (22.8%) and Lenovo (13.2%). Delhi continues to record the highest shipments in the North region as it boasts of a market share of 34.6 percent in consumer PC and 46.6 percent in commercial PC market. Along with UP and Rajasthan, these three states contribute more than two-thirds of consumer PC business in the region.

South region took the first spot in the India PC market, with an overall share of 41.8 percent in Q12014. The region also recorded a sequential growth of 66.4 percent in terms of unit shipment, while the year-on-year increase was also noted to be 2.3 percent. The top 3 vendors contributing to the region’s growth are HP (37.6%), Dell (13.9%) and Lenovo (13.7%). Karnataka and Tamil Nadu remain the two dominant states in the Southern region with a combined share of 53.1 percent in the consumer PC market.

The West region witnessed a sequential growth of 12.8 percent in terms of unit shipments and a year-on-year drop of 3.5 percent in Q2 2014. A clear mandate in elections followed by union budget boosted end user sentiments and their discretionary spending which resulted in a growing demand in Q2 2014. The top 3 vendors contributing to regions expansion are Dell (22.9%), HP (20.3%) and Lenovo (15.8%). Maharashtra continues to remain the single largest state for run-rate PC business in India. It holds a dominant position with 64.9 percent market share in Q2 2014 in consumer PC business and a share of 72.5 percent in the commercial PC business in the West region.

According to Manish Yadav, market analyst with IDC, “Maharashtra, specially Mumbai and Pune houses some of the large corporates in both private and public segments which drives the enterprise spending in this region. Verticals like BFSI, retail, IT/ITeS are the largest contributors of the region in terms of enterprise spending on hardware and Q2 2014 was no exception.”

[caption id=“attachment_100687” align=“aligncenter” width=“483”] IDC[/caption]

East remained flat quarter on quarter in terms of unit shipment, whereas registering a year-on-year drop of 14.6 percent in Q2 2014. The top 3 vendors in the regions were HP (23.2%), Dell (22.2%) and Lenovo (11.6%). West Bengal is the largest state in the Eastern region with a share of 43.4 percent in the consumer PC market and 46.1 percent in the commercial PC market. “IDC observes improved retail demand for PCs in states like Bihar and Jharkand. Growth in this region will continue to be driven by tier II and III cities/ towns.”

Recent findings in our ConsumerScape surveys suggest that end-user spending is back on PCs as 66 percent of the respondents desire to buy PC as their next purchase against devices like smartphones and tablets. Given the low penetration levels, this research suggests there is still a huge opportunity in the India PC business.

“HP and Dell both share more than 85 percent brand visibility followed by Lenovo with a brand visibility of 80-85 percent. This justifies why the top 3 brands hold 74.2 percent (in branded consumer category) of consumer PC market share across the states.”

“Our mid-quarter dipstick suggests that Q3 2014 will be a positive quarter for the consumer PC market as the end-user demand is expected to outstrip our expectations early this quarter,” said Kiran Kumar, research manager, client devices, IDC India.

Notebook shipments are now anticipated to grow at around 20 percent against Q2 2014. He further added, “Launch of affordable PCs (sub 400$ notebooks) has added a fresh lease of life to the overall PC business and vendors like HP and Lenovo stand to gain from this development in Q3 2014.”