India PC market nosedives 11.7% as consumer demand slows down

After eight quarters of continuous growth, the Indian traditional PC market shipments plummeted by 11.7 percent year-over-year (YoY), totalling 3.9 million units in the September quarter, according to a report released on Thursday.

The International Data Corporation (IDC) reported that all areas of the economy declined last year, with the exception of government spending. Government orders rose by 91.5 percent year-over-year, leading to strong growth for the third consecutive quarter.

While talking about the cause of the decline, Senior Market Analyst of at IDC India Bharath Shenoy said-

“With schools and colleges opening, the consumer segment is seeing tapering demand for the past few months as demand for remote learning has come to a standstill.”

Although the desktop and workstation categories grew significantly at 23.4%  and 17.6% year-over-year respectively, the notebook category saw a decline of 19.5%.

At the end of September, the consumer segment shipped 2.1 million units with online sales playing a role in its momentum.

Even though that was not enough to stop a 10.9 per cent year-over-year decline, the report said.

HP outpaced the competition by shipping 940,000 units and maintaining a 23.9% market share.

Lenovo snatched the second position away from Dell with a force to be reckoned with in the consumer market, where it held onto its 18.8% share.

Dell Technologies fell to third place as it lost its grip in the consumer market.

Acer Group remained in fourth place with a 10.9% market share.

ASUS grew its market share to 9.9 per cent in the fifth position, up from 8.5 per cent in the third quarter of last year.

The report concluded that the consumer segment would continue to remain weak for the next few quarters. The demand from commercial and government users, however, is expected to be strong in the short-term.

In addition, companies are likely to focus on their digital transformation initiatives which could further drive up demand for traditional PCs in near future.

It can be concluded that the traditional PC market is expected to pick up in upcoming quarters if consumer demand returns and digital transformation initiatives are embraced. IDC India will continue to keep an eye on the market and provide insights accordingly.

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