Despite Drop in Consumer Sales, India PC Market Improves in CY 2013, Says IDC
The overall India PC shipments for CY 2013 stood at 11.5 million units i.e. a year-on-year growth of 4.8% over CY 2013. The overall market improved marginally on account of buying across different state governments as part of their distribution of free laptops to students.
The commercial PC segment hit a high of 6.7 million units in CY 2013, with a year-on-year growth of 15.8% over CY 2012. However, outside special projects, the demand conditions have worsened in the course of the year and sentiments remain largely subdued owing to multiple factors including the sharp devaluation of rupee, weak economic growth, slowdown in new hiring mixed with layoff fears in large enterprises. “There was a lot of uncertainty amongst investors and businesses. Buying decisions were noted to be typically stretched over 2-3 quarters.” Comments Manish Yadav, Market Analyst with IDC.
“The scenario on the consumer PC segment was no different”, adds Kiran Kumar, Research Manager with IDC. The overall consumer PC market recorded 4.8 million units, a year-on-year drop of 7.4% over CY 2012. “The soaring consumer inflation tightened up the discretionary spending for consumers. Further shift in share of wallet towards smartphones and tablets have led the demand trends to be adverse.” Opines Kiran Kumar.
Top 3 PC Vendor Highlights:
They hit a new high in CY 2013 with a record share of 28.5% in the India PC market. Their execution of the largest education deal in the state government of UP ensured them high volumes driving their market share to its peak. They dominated the consumer PC segment too, with a share of 19.5% in CY 2013. Price competitiveness remained their biggest strength mixed with their well spread partner coverage across the country
They captured the second spot with a share of 13.2% with a year-on-year growth of 5.7% in absolute volumes. Dell benefits from a high brand recall that it has retained amongst the Indian consumers. Further, the vendor has been aggressive and re-investing its efforts & focus on the end-user computing business post their privatisation announcement.
Lenovo is strongly placed in the Enterprise business and in the All-in One Desktop category. They moved to the third spot with a market share of 12.2%in CY 2013. Also, they continue to remain focused in the consumer segment through partner programs, expanding coverage and price aggression. With the new line of business towards tablets and phones, we anticipate Lenovo to leverage their reach and grab more consumer mind share in the days to come.
IDC India Forecasts:
IDC anticipates the overall PC market to decline in CY 2014. With no big announcements around education projects, the decline could be steep, primarily in the commercial PC segment. Also, with general elections around the corner, the focus is expected to be on populist measure and hence the buying decisions in state owned organizations and e-governance projects is expected to be much delayed. “The refresh buying on Windows XP might drive volumes amongst Enterprises but we expect the same to be negated by lack of buying from the Government vertical.” Adds Manish.
On the consumer segment , we anticipate the shift of mobile platform to continue and the choice of consumers will continue to drift towards phone and tablets. “Desktops would exist for specific abilities and continue to be seen as a primary choice for productivity functionalities.” Adds Kiran.
IDC India Q4 2013:
India PC shipment for Q4 2013 stood at 2.03 million, i.e. quarter-on-quarter drop of 37% over Q3 2013 & year-on-year drop of 19% over Q4 2012. Q4 witnessed a consolidation phase in the India PC market with announcement of players exiting the market or de-focusing their PC line of business. Further, lack of large scale buying for special projects and dampness in consumer demand post diwali led to a drastic slump in Q4