India PC market nosedives, HP leads above Dell and Lenovo

PC market trends in India in Q2 2017India traditional PC market fell 18.9 percent quarter on quarter and 19 percent year on year to 1.75 million units in Q2 2017, said IDC.

HP, Dell and Lenovo are the Indian PC market leaders.

The consumer PC market dipped 22.7 percent year on year and 22.6 percent quarter on quarter to 0.81 million units in Q2 2017.

“Outlook on discretionary spending remained optimistic; however, the channel partners remained cautious and planned for de-stocking due to the impact of the GST implementation, which led to lesser sell-in for Q2 2017 quarter,” says Manish Yadav, associate research manager, Client Devices, IDC India.

“Demand for PCs would be fuelled by small business buying as this segment of business users would look to comply with GST norms which came in effect from July 1st 2017,” Manish Yadav said.

The commercial PC market dropped 13.4 percent year on year and 15.3 percent quarter on quarter to 0.94 million units – due to lack of fulfilment of special projects and slowness in government spending.
PC market share of HP, Dell and Lenovo IndiaGST implementation has impacted the business in India though as the effect of demonetisation has subsided.

PC market leaders

HP leads the India traditional PC market with 33.8 percent share. HP recorded the highest consumer market share in the last 10 quarters with 35.4 percent in Q2 2017. This is a 6.5 percentage growth compared to the first quarter of 2017. HP Inc.’s channel engagement and hardware, software and services offer for GST implementation made HP as one of the preferred PC brands in India.

Dell has 17.7 percent market share in the India traditional PC market. Dell faced 57.8 percent drop in PC sales quarter on quarter.

Dell was impacted by GST implementation and tried to liquidate their excess inventory in traditional IT channels. Dell took a cautious call of stock reversal due to poor demand and postponed their sell-in until the third quarter of 2017.

Lenovo has 16.9 percent PC market share. Lenovo is the number 2 brand in the consumer segment with a market share of 17.4 percent. Lenovo’s PC market share in the consumer segment grew by 1.3 percentage point.

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