India PC Market Registers Yearly Growth Driven by Strong Notebook Demand in 2Q18
August 17, 2018 | IDCEstimated reading time: 3 minutes
India's traditional PC market shipments posted a 28.1% growth year-on-year with shipments totalling 2.25 million units in 2018Q2, according to IDC India’s Quarterly Personal Computing Devices Tracker, 2018Q2. The high growth can be partially attributed to the fact that 2017Q2 was heavily impacted by the then-upcoming GST implementation.
Notebooks contributed to 61% of the overall India traditional PC market with a 45.2% year-on-year growth as demand continued across both the consumer and commercial segments. This was mainly driven by ultraslim notebooks, which now account for 20% of overall notebooks compared to 11% a year ago.
Segment Highlights
Consumer PCs grew 33.7% to 1.09 million units, mainly because of promotions and new product offerings with updated specifications and aesthetically pleasing designs. Vendors targeted different use cases and provided schemes such as back to school offers with extended warranties, cashback offers, and no-cost monthly payment options. Vendors launched exclusive models for both online and offline channels too.
“Spending on convertibles and ultraslim notebooks is increasing due to the popularity of lighter form factors that facilitate mobility,” says Nishant Bansal, research manager, PC, IDC India.
The commercial PC market grew 23.3% to reach 1.17 million units. This was driven by both new and replacement demand from enterprises and SMBs. Public sector demand was driven by the execution of several projects in education and government sector.
“Business sentiment has been improving over the settling of reforms, leading to increased demand from medium and small enterprises across verticals like manufacturing, BFSI, and pharmaceuticals as they look to expand their businesses and technology capabilities,” adds Bansal.
Top 3 Company Highlights:
HP Inc:
HP Inc. maintained its leadership with a market share of 31.6% in 2018Q2, with a growth of 6.1% quarter-on-quarter and 19.8% year-on-year growth. HP Inc.’s convertibles and ultraslim notebooks performed well in large format retail and exclusive stores due to a high decibel marketing campaign during the annual Indian Premier League cricket season. The commercial business for HP Inc. posted a 6.7% quarter-on-quarter growth on the back of a few key wins in the education sector, as well as refresh demand across key enterprise accounts from the IT/ITES and BFSI verticals.
Dell Inc:
Dell Inc. retained the second position with a 23.7% market share in 2018Q2; this was a year-on-year growth of 71.3% and a quarter-on-quarter decline of 2.2%. Although the company declined 6.3% over the last quarter in the consumer business, its ultraslim notebooks registered a double-digit growth as the company continued its focus on high-end devices. Dell Inc.’s commercial business grew 1.2% quarter-on-quarter due to its increased focus on a solution-centric approach, selling both hardware and services as a bundle for medium and large businesses in the BFSI, PSU, and IT/ITeS sectors.
Lenovo:
Lenovo remained in the third position, with a market share of 18.0% with a 36.0% growth year-on-year and a decline of 20.6% quarter-on-quarter. On the back of brand pull and aggressive pricing, Lenovo managed to remain largely flat in the consumer PC market in 2018Q2. On the commercial side, incremental demand from global accounts and small-medium enterprises contributed to Lenovo’s commercial volumes. However, the company declined by 33.2% quarter-on-quarter due to the lack of execution of manifesto projects.
India PC market forecast:
IDC anticipates the overall traditional India PC market to grow sequentially in Q3 2018 due to seasonality and aggressive efforts from ecosystem players to meet the demand. “The consumer market is expected to take-off in the coming quarter as consumer confidence on discretionary spending should remain positive during the upcoming festival season,” said Navkendar Singh, Associate Research Director, IDC India.
Commercial spending due to both new and refresh demand by large and medium enterprises is expected to continue, led by the education, BFSI, and IT/ITeS sectors. The public sector is also expected to utilize allocated budgets for the new financial year, continuing with the execution of state manifesto projects.
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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 1,100 analysts worldwide, IDC offers global, regional, and local expertise on technology and industry opportunities and trends in over 110 countries. IDC's analysis and insight help 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 subsidiary of IDG, the world's leading technology media, research, and events company.
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