India Traditional PC Market Revives Due to Strong Notebook Demand with 8.5% Growth YoY in Q1 2017

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According to the latest IDC Quarterly Personal Computing Device Tracker May 2017, the overall India Traditional PC shipment for Q1 2017 stood at 2.16 million units (i.e. quarter on quarter growth of 12.5% over Q4 2016 and year on year growth of 8.5% over Q1 2016).

Form Factor Highlight

The overall consumer PC market registered a shipment of 1.05 million units in Q1 2017, with a healthy 14.5% growth from the same period last year and 19.4% quarter on quarter growth. “Post demonetisation reform, market observed an upbeat demand owing to an optimistic shift in discretionary spending from consumers in first quarter of 2017,” says Manish Yadav , Associate Research Manager, Client Devices, IDC India.

The overall commercial PC market recorded a shipment of 1.11 million units in Q1 2017. On the backdrop of seasonality, execution of state-owned manifesto deals and increase spending from BFSI vertical, Q1 2017 observed a quarter on quarter growth of 6.7% and 3.3% year on year over Q1 2016. “Commercial spending remained optimistic about the economic scenario and the potential for growth, despite uncertainty surrounding the stability of global economy,” says Sanjeev Sharma , Research Manager, Client Devices, IDC India.

Top 3 Vendor Highlights:

HP Inc. led the market with a 29.5% share of the overall India traditional PC market in Q1 2017. In addition to their success in the consumer segment, HP Inc. picked up some key wins and executed a few state-owned education projects along with fulfilment of projects in the banking and financial sector. This led to a 5.8% growth quarter on quarter in the overall India traditional PC market in Q1 2017.

Dell took the second spot with 22.5% market share in the overall India traditional PC market in Q1 2017. The vendor continues to drive new initiatives and programs to provide seamless experience of learning for students through technology. Owing to such initiatives the vendor grew by 19.9% quarter on quarter in overall traditional consumer PC market in Q1 2017. Simultaneously the Dell EMC merger has provided the vendor an extra space for customer expansion, which could prove to be beneficial in the near future as well.

Lenovo held on to the third spot, with a 17.7% market share in the overall India traditional PC market in Q1 2017 and recorded a quarter on quarter growth of 15.1% owing to the complete execution of manifesto project. The vendor also grew by 16.9% quarter on quarter in the overall consumer market owing to the efforts observed in improving the after sales support with different initiatives using not just the traditional way but also social media and other new age technologies.

IDC India Forecast:

“IDC India anticipates a short-term postponement and resistance by traders during GST implementation phase. But in the long run owing to this structured tax regime the effect will get neutralized and will propel growth owing to festive season.” adds Yadav.

With focus, around enriching gaming as potential segment in consumer business, OEMs are looking to revamp their product portfolio and upsell in mid to premium range. On the other hand, commercial business is expected to grow over the next few quarters driven by state owned education projects. 

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