The traditional PC market in India, encompassing desktops, notebooks, and workstations, encountered challenges as it shipped 3.2 million units in the second quarter of 2023 (2Q23). Although experiencing a 5.9% increase quarter-over-quarter (QoQ), the market witnessed a significant 15.3% decline year-over-year (YOY) in the same period, as revealed by the latest data from the International Data Corporation (IDC) Worldwide Quarterly Personal Computing Device Tracker.
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During 2Q23, all product categories registered YOY declines. The volume-driving notebook category suffered an 18.5% YOY decline, and the desktop category, despite its previous growth trajectory, declined by 7.0% YOY. Both the consumer and commercial segments faced setbacks, declining by 17.0% and 13.8% YOY, respectively.
Driving the PC market were the education and government segments, while the enterprise segment continued to face challenges. Education initiatives led by state governments, such as Madhya Pradesh, Gujarat, and Tamil Nadu, propelled a 43.7% YOY growth in the education segment. The government segment experienced an 8.2% YOY growth, supported by the fulfillment of state high court orders. The premium notebook category (>US$1,000) experienced a 30.7% YOY decline primarily due to limited enterprise orders, but it saw a promising 39.0% QoQ growth. The online channel declined by 15.8% YOY but is showing signs of recovery and is anticipated to perform well in the next quarter.
Bharath Shenoy, Senior Market Analyst at IDC India, noted, “The India consumer PC segment is showing signs of recovery as market sentiment improves. Despite a YoY double-digit decline, it recorded a strong double-digit QoQ growth. Successful college campaigns and improved e-tail channel performance have provided relief to the consumer segment.”
Top 5 Company Highlights for 2Q23:
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1. HP Inc. maintained its lead in the market with a 31.1% share. Strong demand for gaming notebooks and traction in brand stores contributed to a 29.5% consumer segment share, while robust demand in government and education segments led to a 32.6% commercial share. HP witnessed a 9.5% YoY growth in the SME segment.
2. Lenovo, in second place with a 16.2% share, experienced a 30.2% YoY decline. It secured the third position in both the consumer and commercial segments, with 13.0% and 18.9% shares, respectively. In the SME segment, Lenovo held a 25.8% share.
3. Dell Technologies stood third, commanding a 15.3% share. Dell held a 19.1% commercial segment share and an 11.0% consumer segment share. The vendor focused on profitability and managed channel inventory to a healthy level.
4. Acer Group secured fourth place with an 11.4% share. It excelled in the desktop category with a 21.9% share, driven by demand from the government segment. Acer achieved an 8.2% YoY growth in the total market.
5. ASUS, in fifth position with a 7.2% share, thrived in the consumer segment with a 14.8% share, surpassing Lenovo and trailing HP.
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Navkendar Singh, Associate Vice President of Devices Research at IDC India, South Asia & ANZ, stated, “Import restrictions expected from November may drive vendors to expedite channel inventory in anticipation of price increases. SMEs and enterprises could accelerate their PC procurement to navigate these changes.”
