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‘Sluggish’ India PC market held up by consumer spend, IDC reveals

24 Nov 2016

The overall PC shipment for Q3 2016 stood at 2.51 million units, representing a quarter on quarter growth of 17.3% over Q2 2016, and year on year decline of 22.5% over Q3 2015, according to the latest figures from IDC.

The overall consumer PC Market recorded 1.37 million units, a quarter on quarter growth of 31.% over Q2 2016.

“With increased consumer confidence; backed by strong festive demand, decent monsoon and positive economic outlook, eventually drove the pockets of investment in the quarter,” explains Manish Yadav, associate research manager, Client Devices, IDC India.

The commercial PC Segment recorded 1.13 million unit shipments in Q3 2016, representing a 4.1% quarter on quarter increase against Q2 2016.

“With favourable domestic macroeconomic scenario spending from enterprises have been positive & anticipate improved spending in upcoming quarter as well” says Yadav.

Vendor highlights:

HP Inc.:

HP took the top spot with an overall market share of 28.8% in the India PC Market. The vendor grew by 18.9% quarter on quarter over Q2 2016 owing to the partial execution of state owned education project and with increasing LFR (Large Format Retailer) and online presence during festive and back to college season the vendor recorded 20.0 percent growth in overall consumer market in Q3 2016.

Dell:

Dell captured the second spot with a market share of 24.1%. The vendor grew by 27.6% quarter on quarter over Q2 2016. With improved channel engagement & new opportunities on AMD platform drove additional business for the vendor in Q3 2016. Owing to strong back to college season bundled with exciting offers; the vendor was able to partially liquidate its channel inventory showing growth in Q3 2016.

Lenovo:

Lenovo took the third spot with 17.5% market share in the quarter. The vendor grew by 27.3% quarter on quarter over Q2 2016. Backed by change in management and improving partner engagement assisted the vendor in refining its consumer Q3 2016 sales. Also the vendor with its new partner program & improved sales techniques thrived in commercial market & recorded a growth of 10.1 percent quarter on quarter.

According to IDC, thePC market is expected to observe sluggishness in coming quarters.

“IDC anticipates seasonality to impact the consumer market and currency demonetisation adding to the worse; as early indicator illustrates an immediate impact on retail purchase and drop observed in online channel business,” says Yadav.

“However, commercial spending is anticipated to drive PC market momentum owing to the execution of state owned education projects observed across different states.

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