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India's PC market up 15.8% on year in Q2: IDC India

According to IDC, Indian PC market inclusive of desktops, notebooks, and workstations, shipped 3.1 million units, in Q3FY19 as Windows 7 is near to its scheduled end in early 2020. The desktop category saw a 10.6 per cent on year growth in its shi...

ET Bureau|
Nov 15, 2019, 03.28 PM IST
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This growth was mainly driven by the second phase of shipments to the Electronics Corporation of Tamil Nadu Ltd. (ELCOT) under its ongoing initiative of free distribution of laptops in the state.
New Delhi: The Indian PC market grew 15.8 per cent in third quarter of 2019, driven by Tamil Nadu’s scheme to distribute free laptops and accelerated upgrade to Windows 10 by corporates, a research report said.

According to data from the International Data Corporation (IDC) Worldwide Quarterly Personal Computing Device Tracker, Indian PC market inclusive of desktops, notebooks, and workstations, shipped 3.1 million units, in Q3FY19 as Windows 7 is near to its scheduled end in early 2020.

The desktop category saw a 10.6 per cent on year growth in its shipments, mainly contributed by Windows 10 refresh buying from the banking sector. Notebooks grew 18 per cent annually on the back of education deals as well as growth in both corporate and SMB segments, IDC report said.

This growth was mainly driven by the second phase of shipments to the Electronics Corporation of Tamil Nadu Ltd. (ELCOT) under its ongoing initiative of free distribution of laptops in the state.

The commercial segment witnessed a 39 per cent on year growth, as vendors shipped a total of 1.7 million units in the third quarter of 2019. "Strong demand from the start-up ecosystem, BFSI segment, and very large enterprises, along with the Tamil Nadu education deal, helped the commercial segment provide much-needed growth to the Indian PC market," said Bharath Shenoy, Market Analyst, PC, IDC India.

"Vendors have procured inventory to target Windows 10 refreshes in small and medium enterprises. Hence, the SMB segment is expected to be relatively softer in 2019Q4, although education deals and global account refreshes are expected to maintain the momentum."

However, the consumer segment was down by 4.2 per cent from the same quarter a year ago. Learning from last year's inventory issues, some vendors were cautious to avoid extra stocking this time and shipped in a phased manner, leading to a weak consumer quarter as compared to the third quarter of 2018.

Regardless of vendors' efforts to maintain the price parity between the offline and online channels, the retail segment witnessed a 6.9 per cent decline when compared to a year back.

"As we see consumers shifting entertainment and content consumption to smartphones, PCs are becoming a conscious purchase in India. Consumers are comfortable to wait for discounts and offers while looking to buy or upgrade their PCs," said Jaipal Singh, Associate Research Manager, IDC India.

"Looking at opportunities, branded PC gaming is a growth area in the next few quarters. Although India's gaming market is dominated by mobile phones, gamers have already started preferring PCs for a more immersive experience as their best alternate," IDC said.

Lenovo retained its leadership position with a 28.5 per cent market share in Q3. Its shipments grew 55.4 per cent YoY on the back of the ELCOT deal. Outside the ELCOT, Lenovo was able to win a few large BFSI deals, which helped the brand to maintain triple-digit growth in the overall commercial segment for the second quarter in a row.
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