India's PC sales power down for fourth straight quarter, shows IDC data

The education and government sectors continued to propel the PC market, while the enterprise segment remained challenged

The sales of desktops, notebooks, and workstations, collectively called personal computer (PC) shipments, fell for the fourth consecutive quarter year-on-year (Y-o-Y). Shipments in the second quarter (Q2) of calendar year 2023 (CY23) stood at 3.2 million units. This was up 5.9 per cent quarter-on-quarter (Q-o-Q), but down 15.3 per cent year-on-year (Y-O-Y), according to data released by International Data Corporation (IDC) in its Worldwide Quarterly Personal Computing Device Tracker.

The education and government segments continued to drive the PC market, while the enterprise segment continued to struggle. However, IDC analysts said the recent import ban on PCs and laptops may change that.

“The PC market has been sluggish over the past few quarters as enterprises and SMEs (small and medium-sized enterprises) 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 consumer and commercial segments. SMEs and enterprises might also fast track their PC procurement anticipating a price increase from November," said Navkendar Singh, associate vice-president, devices research, IDC India, South Asia & ANZ.

In Q2 CY23, all product categories declined Y-o-Y. While sale of notebooks, which have been a volume driver, declined 18.5 per cent Y-o-Y, the desktop category, which had been rising until the last quarter, also declined 7 per cent Y-o-Y. Both the consumer and commercial segments were in the red, declining 17.0 per cent and 13.8 per cent Y-o-Y, respectively.

Government-driven education projects for a few states like Madhya Pradesh, Gujarat, and Tamil Nadu propelled the education segment, which grew by 43.7 per cent Y-o-Y. The fulfilment of several state high court orders helped the government segment grow by 8.2 per cent Y-o-Y.

Premium notebooks (costing more than $1,000) declined by 30.7 per cent Y-o-Y primarily due to very limited enterprise orders. However, there was some optimism as the premium notebook category witnessed a strong 39 per cent Q-o-Q growth. The online channel declined by 15.8 per cent Y-o-Y, but has started picking up and is expected to do well in the next quarter.

“The India consumer PC segment has started showing signs of recovery as market sentiment is improving. Despite a Y-o-Y double-digit decline, it clocked a strong double-digit Q-o-Q 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.

Market share

HP led the market with a share of 31.1 per cent in Q2CY23 and a strong growth in both the consumer and commercial segments. While strong demand for gaming notebooks and good traction in brand stores helped it hold a 29.5 per cent share in the consumer segment, strong demand in government and education segments helped the vendor boast a commercial share of 32.6 per cent, said the release from IDC. It also witnessed a Y-o-Y growth of 9.5 per cent in the SME segment.

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

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

Acer Group stood fourth with a share of 11.4 per cent. The vendor is faring much better in the desktop category as it came second behind HP with a share of 21.9 per cent. It led the commercial desktop category with a share of 29.8 per cent, driven by increased demand from the government segment.

ASUS held fifth position with a share of 7.2 per cent. 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 per cent.