Indian PC market is expected to be "sluggish" because of demonetization, says IDC

Hit by a double whammy of seasonality and government's move to scrap old Rs 500 and Rs 1,000 notes, the Indian PC market is expected to be "sluggish" in the coming quarters, research firm IDC said today.

Hit by a double whammy of seasonality and government's move to scrap old Rs 500 and Rs 1,000 notes, the Indian PC market is expected to be "sluggish" in the coming quarters, research firm IDC said today. PC shipment saw a 22.5% fall in the third quarter this year to 2.51 million units compared to the year-ago period, as per IDC data.

On a sequential basis, however, there was a 17.3% growth in the said quarter. "PC market is expected to observe sluggishness in coming quarters," IDC said. IDC India Associate Research Manager (Client Devices) Manish Yadav explained: "IDC anticipates seasonality to impact the consumer market and currency demonetization adding to the worse; as early indicator illustrates an immediate impact on retail purchase and drop observed in online channel business."

The Centre on November 8 announced the demonetization of old 500 and 1,000 rupee notes in a bid to fight against black money and terror funding activities. However, commercial spending is anticipated to drive PC market momentum owing to the execution of state-owned education projects observed across different states, he added.

The consumer PC market recorded 1.37 million units shipment in September quarter, a sequential growth of 31% over the April-June 2016 quarter. "... increased consumer confidence, backed by strong festive demand, decent monsoon and positive economic outlook eventually drove the pockets of investment in the quarter," Yadav said.

The commercial PC segment recorded 1.13 million unit shipment in the said quarter, up 4.1% from the preceding quarter. "With favourable domestic macroeconomic scenario spending from enterprises have been positive and anticipate improved spending in upcoming quarter as well," he said. HP took the top spot with an overall market share of 28.8%, followed by Dell (24.1%) and Lenovo (17.5%).

PTI

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