Indian PC shipments fall 5.4% YoY in Sept quarter

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Worldwide number stands at 8.75 crore, a decline of 8.3% in Q3

Personal computer shipments in India for the July-September quarter stood at 29.9 lakh units, down 5.4 per cent year-on-year and up 4.9 per cent sequentially. On a quarter-on-quarter basis consumer demand in India was robust and resilient to economic challenges compared with its global counterparts, according to research firm IDC.

Despite the economic slowdown and high inflation, the consumer segment grew 13.5 per cent (0.9 per cent down year-on-year). Lenovo continued to be the market leader with 16.9 per cent share followed by HP (15.6 per cent) and Acer (15.5 per cent).

Kiran Kumar, senior analyst at IDC, said: “Fulfilments for the ELCOT notebook project (Tamil Nadu government free student laptop scheme) continued to drive Lenovo and Acer to take the top places in the India PC market. On the other hand, HP sustained its dominance, specifically in the consumer PC market. Launch of new series of notebooks in the entry and mid-price bands fuelled the vendor’s growth in Q3.

“Consumer demand for notebooks is emerging as the sole bright spot in the India PC market, even as the commercial market continues to be bucked down by economic slowdown. Uncertain investment environment continues to be a major letdown for commercial PC buyers who remained to be cautious with their spending in Q3 2012.”

Unlike in the other developed markets, the consumer segment saved the Indian PC industry during Q3. Worldwide PC shipments stood at 8.75 crore, a decline of 8.3 per cent YoY, according to Gartner. Slowing consumer segment led to the overall decline in the PC market. In the Asia-Pacific region, PC shipments reached 3.13-crore units, a 5.6 per cent decline from the third quarter of 2011.

“The third quarter was also a transitional quarter before Microsoft’s Windows 8 operating system release. Shipments were less vigorous as vendors and their channel partners liquidated inventory,” said Mikako Kitagawa, principal analyst at Gartner. “By the end of September, retailers were focused on clearing out inventory in advance of the Windows 8 launch. On the professional side, there was minimum impact from Windows 8 in the quarter because it will not adopt Windows 8 PCs immediately after the release.”

Lenovo led the global PC industry as well followed by HP and Dell. It was the only major player to report positive annual growth, mainly boosted by government orders in emerging markets including India.

The consumer market continued to pull down industry, and specifically, Dell’s revenues during Q3, said Amit Midha, president of Asia-Pacific/Japan of the company. There is no question that the global economic environment is challenging, especially in the consumer PC business. The situation is no different for the company in India as well. Dell’s EMEA and Apac revenues declined by 15 per cent and 11 per cent, respectively. The Q4 demand would continue to be lean and it would impact Dell’s financials, he added.

shyamalaseetharaman@mydigitalfc.com

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