The PC market in India, encompassing desktops, notebooks, and workstations, faced continued challenges in the second quarter of 2023. Despite a 5.9 percent increase in shipments quarter-over-quarter (QoQ), the PC market witnessed a significant 15.3 percent year-over-year decline in the same period, according to recent IDC report.
IDC’s Worldwide Quarterly Personal Computing Device Tracker said all product categories experienced YoY declines in the second quarter of 2023 (April-June).
The notebook category, a volume driver, declined by 18.5 percent, while the desktop category, which had shown growth until the previous quarter, also contracted by 7.0 percent. Both consumer and commercial segments faced setbacks, with declines of 17.0 percent and 13.8 percent, respectively.
The education and government sectors remained crucial drivers of the PC market’s performance, while the enterprise sector struggled to gain traction. Government-led educational initiatives in states such as Madhya Pradesh, Gujarat, and Tamil Nadu propelled the education segment, achieving an impressive 43.7 percent growth.
The government segment saw an 8.2 percent growth, attributed to the fulfillment of various state high court orders. However, the premium notebook category (over $1,000) saw a substantial 30.7 percent YoY decline, primarily due to limited enterprise orders. Encouragingly, this category experienced a robust 39.0 percent QoQ growth. The online sales channel, although initially down by 15.8 percent, displayed signs of recovery and is anticipated to perform well in the coming quarter.
Bharath Shenoy, Senior Market Analyst at IDC India, noted that the consumer PC segment in India was showing indications of recovery as market sentiment improved. Despite a double-digit decline, the segment experienced strong double-digit QoQ growth. Successful college campaigns and enhanced performance of e-commerce channels contributed to this positive trend.
Top 5 Companies in 2Q23
HP maintained its lead in the market, capturing a 31.1 percent share. The company’s performance spanned both the consumer and commercial segments, with strong demand for gaming notebooks and solid traction in brand stores. HP held a 29.5 percent share in the consumer segment and a 32.6 percent share in the commercial segment, thanks to substantial demand in government and education sectors. The vendor achieved a growth of 9.5 percent in the SME (Small and Medium-sized Enterprises) segment.
Lenovo, holding a 16.2 percent share, secured the second position despite a significant 30.2 percent decline. It maintained the third spot in both the consumer and commercial segments, with respective shares of 13.0 percent and 18.9 percent. In the SME segment, Lenovo ranked second with a 25.8 percent share.
Dell Technologies, occupying the third place with a 15.3 percent share, marginally outpaced Lenovo in the commercial segment, boasting a 19.1 percent share. However, its presence in the consumer segment was modest, with an 11.0 percent share. Dell Technologies prioritized profitability and avoided aggressive pricing-driven tenders, while also focusing on maintaining healthy channel inventory levels.
Acer Group, holding a 11.4 percent share, positioned itself as the fourth-largest vendor. The company found success in the desktop category, securing the second spot with a 21.9 percent share, and leading the commercial desktop segment with a 29.8 percent share driven by government demand. Acer Group’s strong performance in the consumer segment contributed to an overall growth of 8.2 percent.
ASUS, claiming the fifth spot with a 7.2 percent share, saw success through offline channel expansion. The company excelled in the consumer segment, ranking second after HP and ahead of Lenovo, with a 14.8 percent share.
Despite the challenges faced by India’s traditional PC market, certain segments exhibited promising signs of recovery, driven by government-led initiatives, targeted campaigns, and strategic channel expansions.
