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India PC Market Slumps By 8.3% in Q3 2013

India PC Market Slumps By 8.3% in Q3 2013

India PC Market Slumps By 8.3% in Q3 2013

The overall India PC shipments for Q3 2013 stood at 3.24 million units i.e. a year-on-year growth of 8.4% over Q3 2012 and a quarter-on-quarter slide of about -8.3% over Q2 2013. Uptake on commercial volumes owing to fulfilments around large education projects, has led to the contribution of this segment to rise to around 59% against their share of nearly 50% seen a year ago.

According to Kiran Kumar, Research Manager at IDC, “Special education projects in states like UP & Tamil Nadu and a much delayed spending in the year from the BFSI segment have largely skewed the overall growth in Q3 towards commercial segment.”

On the other hand, demand for consumer PCs remain suppressed against Forecast expectations. According to Manish Yadav, Market Analyst, IDC, “July and August was noted to be upbeat as lower tier channels stocked up owing to exchange rate pressures. However, excess stock mixed with poor end user demand weakened channel buying in September.” Despite constrained spending, back-to-school season and festive demand starting Onam did drove pockets of investment amongst consumers, particularly around Portable PCs.

 

Figure 1: Vendor Share – India Overall PC Market, Q3 2013 (% of Shipments)
Hewlett-Packard 32.3
Lenovo 13.6
Dell 11.8
Acer Group 10.5
Others 31.8
Total 100.0
Source: IDC Quarterly PC Tracker, Q3 2013

 

In terms of vendor share, HP sustains its lead with 32.3% share, yet again accounting nearly one-third size of the India PC market in Q3 2013. “Vendor continued to receive a boost in shipments as part of a large education project in UP. Also, their ability to maintain better pricing against competition tied with aggressive marketing campaigns on both desktops and portable PCs, helped them scale up their dominance in the India PC market”, adds Kiran.

Lenovo secured second place with a share of 13.6% in Q3 2013. “Their consumer PC business grew at a striking 44.5% over Q2 2013. Focus on expanding channel reach mixed with dominance in AIOs and a growing share in modern retail helped them drive shipments in Q3”, comments Manish. Dell took third spot with market share of 11.8%. “Dell has been very successful with the integration of touch in their mix. Also they have been able to thrive in volume price bands in the recent past”, observes IDC.

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About Kalpana Singhal

Kalpana Singhal is Co-Founder & Editor in Chief at Techplus Media. She is an Innovative & challenger Entrepreneur who started her journey from corporate communication in early 2001 with I.T. Industry followed by Lead - Editorial at BeautyIndia.in in 2008 . You can follow her on twitter, Google+ and Facebook.

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