India’s PC Market Faces Challenges in 2023, IDC Reports

The PC market in India, encompassing desktops, notebooks, and workstations, experienced a decline in 2023, according to the International Data Corporation (IDC) Worldwide Quarterly Personal Computing Device Tracker.
India PC market in 2023 IDC reportThe report indicates that PC shipments in India totaled 13.9 million units, marking 6.6 percent decrease compared to the previous year.

While desktop category witnessed growth of 6.7 percent year-over-year, notebooks and workstations saw declines of 11.1 percent and 14 percent respectively.

Despite this overall decline, the PC market showed signs of recovery in India in the second half of 2023, with 12.9 percent growth. The fourth quarter of 2023 saw a particularly strong performance, with an 11.4 percent growth, driven by increases in both desktops (16.8 percent) and notebooks (9.9 percent), IDC said.

The consumer segment experienced a 3.1 percent decline, while the commercial segment saw a more substantial decrease of 9.7 percent, attributed to reduced demand from enterprises. However, the education and government segments emerged as strong performers in 2023, with growth rates of 80.5 percent and 18 percent respectively.

Both the consumer and commercial PC segments rebounded significantly in the fourth quarter, with growth rates of 19.3 percent and 5.3 percent respectively.

“Low market sentiments after the pandemic led to reduced consumer demand, resulting in a steep shipment correction in the second half of 2022 and the first half of 2023. The decision on import regulations, improving market sentiment, and an aggressive push from vendors ensured a market recovery in the second half of 2023,” Bharath Shenoy, Senior Research Analyst at IDC India, said.

Top 5 PC brands in India

HP Inc. maintained its position as the market leader with a 31.5 percent share in 2023. The company dominated both the commercial and consumer segments, with shares of 33.6 percent and 29.4 percent respectively. HP also led in both desktops (25.1 percent share) and notebooks (33.8 percent share). The vendor witnessed a temporary drop in its consumer segment share in 3Q23 but recovered strongly in 4Q23 to reach 32.5 percent.

Lenovo secured the second position with a 16.7 percent share, experiencing a 17.8 percent decline in shipments. The company faced challenges primarily in the SMB segment and lacked presence in the government and education sectors. Despite this, it managed to increase its share in the enterprise segment to 19.6 percent.

Dell Technologies held the third position with a 15.5 percent share but experienced a steep decline of 24.5 percent. It maintained its stronghold in the commercial segment with a 20 percent share but lagged behind in the consumer segment with 10.8 percent. However, Dell outperformed Lenovo in 4Q23 and held an 18.3 percent share in the total market.

Acer has secured the fourth position with a 12.3 percent share, achieving a 16.1 percent growth. Strong performance in the government and education sectors propelled Acer’s growth, leading to a 29.6 percent share in the commercial desktop category.

Asus rounded out the top five with a 7.9 percent share, experiencing an 8.6 percent growth. Asus has focused on the consumer segment and managed to ship over a million units for the first time. However, Asus slid to fifth position in 4Q23 due to inventory correction efforts.

Navkendar Singh, Associate Vice President of Devices Research at IDC India, South Asia & ANZ, noted that the commercial segment might see delays in deals and projects, especially in the public sector. However, he expressed optimism regarding the potential boost from increased local assembly efforts and the launch of AI-powered devices in the second half of the year, which could positively impact the market going into 2025.

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