India's PC Market Declined for a Fourth Consecutive Quarter, Shipping 3.2 Million Units in 2Q23, According to IDC

Contact

For more information, contact:

• Bharath Shenoy  Email: bshenoy@idc.com
• Miguel Carreon  Email: mcarreon@idc.com
• Michael De La Cruz  Email: mdelacruz@idc.com

INDIA, 17 Aug, 2023 – The India traditional PC market, inclusive of desktops, notebooks, and workstations, continued to struggle as it shipped 3.2 million units in 2Q23. Despite growing by 5.9% quarter-over-quarter (QoQ), it declined by 15.3% year-over-year (YOY) in 2Q23 (Apr-Jun), according to new data from the International Data Corporation (IDC) Worldwide Quarterly Personal Computing Device Tracker.

In 2Q23, all the product categories declined YoY. While the volume driver notebook category declined by 18.5% YoY, the desktop category, which had been on a growth trajectory until last quarter, also declined by 7.0% YoY. Both the consumer and commercial segments were in the red, declining by 17.0% and 13.8% YoY respectively.

The education and government segments continued to drive the PC market while the enterprise segment continued to struggle. Government-driven education projects for a few states like Madhya Pradesh, Gujarat, and Tamil Nadu propelled the education segment, which grew by 43.7% YoY. The fulfillment of several state high court orders helped the government segment grow by 8.2% YoY. Premium notebooks (>US$1,000) declined by 30.7% YoY primarily due to very limited enterprise orders. However, there was some optimism as the premium notebook category witnessed a strong 39.0% QoQ growth. The online channel declined by 15.8% YoY but has started picking up and is expected to do well in next quarter.

“The India consumer PC segment has started showing signs of recovery as market sentiment is improving. Despite a YoY double-digit decline, it clocked a strong double-digit QoQ growth. PC vendors successfully ran college campaigns and got good traction. The improved performance of their e-tail channels has also provided much needed respite to the consumer segment,” said Bharath Shenoy, Senior Market Analyst, IDC India.

Top 5 Company Highlights: 2Q23

HP Inc. led the market with a share of 31.1% in 2Q23 anda strong showing in both the consumer and commercial segments. While strong demand for gaming notebooks and good traction in brand stores helped the vendor to hold a share of 29.5% in the consumer segment, strong demand in government and education segments helped the vendor to hold a commercial share of 32.6%. It also witnessed a YoY growth of 9.5% in the SME segment.

Lenovo stood second with a share of 16.2% but declined by 30.2% YoY. It was third in both the consumer and commercial segments with a share of 13.0% and 18.9% respectively. The vendor, however, was second behind HP in the SME segment with a share of 25.8%.

Dell Technologies stood third with a share of 15.3%. The vendor was marginally ahead of Lenovo in the commercial segment as it held a share of 19.1% but held a meagre 11.0% share in the consumer segment. The vendor focused on profitability and stayed away from tenders where aggressive pricing is required. Also, it shipped lower volume as it restored channel inventory to a healthy level.

Acer Group stood fourth with a share of 11.4%. The vendor is faring much better in the desktop category as it came second behind HP with a share of 21.9%. It led the commercial desktop category with a share of 29.8% driven by increased demand from the government segment. It also witnessed strong demand in the consumer segment which eventually helped the vendor to grow in the total market by 8.2% YoY.

ASUS held fifth position with a share of 7.2%. With strong offline channel expansion, the vendor continued to do well in the consumer segment as it came second behind HP and ahead of Lenovo with a share of 14.8%.

Commenting on the outlook, Navkendar Singh, Associate Vice President, Devices Research, IDC India, South Asia & ANZ said, “The PC market has been sluggish over the last few quarters as enterprises and SMEs have been delaying their PC procurement. However, with import restrictions expected to kick in from November, we expect vendors to push channel inventory in both the consumer and commercial segments. SMEs and enterprises might also fast track their PC procurement anticipating a price increase from November."

Notes:

• Shipments include shipments to distribution channels or end-users. OEM sales are counted under the company/brand under which they are sold.

• Enterprise segment refers to all companies with 500 and above employees, and SMBs are referred to companies below 500 employees.

• Traditional PCs include Desktops, Notebooks, and Workstations and do not include Tablets or x86 Servers. Detachable Tablets and Slate Tablets are part of the Personal Computing Device Tracker but are not addressed in this press release.

- Ends -

For more information about this report, trends, or questions for analysts, please contact Bharath Shenoy, Sr. Research Analyst, at bshenoy@idc.com or Miguel Carreon, Marketing Specialist, at mcarreon@idc.com . You can also follow IDC India’s LinkedIn  & Twitter and pages for regular updates on IDC’s research & events.

About IDC Trackers

IDC Tracker   products provide accurate and timely market size, vendor share, and forecasts for hundreds of technology markets from more than 100 countries around the globe. Using proprietary tools and research processes, IDC's Trackers are updated on a semiannual, quarterly, and monthly basis. Tracker results are delivered to clients in user-friendly Excel deliverables and on-line query tools.

About IDC

International Data Corporation (IDC) is the premier global provider of market intelligence, advisory services, and events for the information technology, telecommunications, and consumer technology markets. With more than 1,300 analysts worldwide, IDC offers global, regional, and local expertise on technology, IT benchmarking and sourcing, and industry opportunities and trends in over 110 countries. IDC's analysis and insight helps IT professionals, business executives, and the investment community to make fact-based technology decisions and to achieve their key business objectives. Founded in 1964, IDC is a wholly owned subsidiary of International Data Group (IDG), the world's leading tech media, data, and marketing services company. To learn more about IDC, please visit www.idc.com. Follow IDC on Twitter at @IDC  and LinkedIn. Subscribe to the IDC Blog for industry news and insights.

All product and company names may be trademarks or registered trademarks of their respective holders.

Coverage