Personal computer maker HP has bounced back in the quarter ended June this year to reclaim the top spot in the domestic segment by substantially increasing its market share.
In the June quarter, HP's share of the total personal computers shipped to the country grew to 28.4 per cent - a 3.4 percentage point rise, quarter-on-quarter, according to data from research firm International Data Corporation.
HP had lost the dominant position at the end of the last year.
Dell remained at the second spot with 22.2 per cent market share. However, its market share declined.
Chinese technology devices giant Lenovo held on to its third position with 16.1 per cent market share. However, its share has declined considerably since December 2015 when it overtook HP and became the top brand in the sector with a 25.3-per cent share.
"Lenovo made some recovery after initial concerns surrounding high inventory at beginning of the quarter by virtue of improved channel engagement and support extended by online sales," said Manish Yadav, senior market analyst, client devices, IDC India.
"HP continues to dominate the consumer market with 28.2 per cent market share, which grew 2.7 percentage points q-o-q, in June quarter 2016. With strong retail presence backed by competitive price and well spread partner coverage across the country has leveraged this growth", he said.
According to Ketan Patel, director, personal systems, HP India, the firm's market share in the commercial PC segment stands at 28.5 per cent. While, the commercial laptop segment grew during the quarter, desktop sales declined.
The overall commercial PC segment remained flat - growing by just 1.1 per cent to 1.09 million units. The total PC shipment during the quarter increased by 7.2 per cent to 2.14 million, backed by 14.5 per cent growth in consumer PC shipment. Consumer PC shipment stood at 1.05 million units.
"Consumer spending throughout the quarter remained lukewarm. However, owing to seasonality, the quarter ended with a positive momentum. With forthcoming benefits from the 7th Pay Commission award and increased Budget allocation for rural India, coupled with a good monsoon, the rural demand is anticipated to improve, while urban demand is steadily picking-up," IDC's Yadav said.
He said demand for PCs would increase in the coming quarters as consumers started spending more during the festive season.
"With only nine per cent penetration of PCs in India, compared to over 70 per cent in China and the US, sales are bound to grow. However, as discounts on e-commerce platforms are comparatively lower now, and the game is changing. We have tie-ups with major online platforms and will maintain a balance between all the channels," Patel said.
Currently, some 10 per cent of PC sales come from the online channel and modern trade generates 15 per cent of the total consumer PC sales.
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