NEW DELHI: The India PC market (incl. Desktops, notebooks, and workstations) declined by 11.7% year-over-year in 3Q22 with shipments of 3.9 million units, after eight consecutive quarters of growth amid a weak currency and rising price devices, the International Data Corporation (IDC) said in a report Thursday.
Shipments of Dell Technologies fell the sharpest at 40.5% year-over-year to 630,000 units while HP Inc.’s shipments also declined 25.9% to 930,000 units. By contrast, Acer, Asus and Lenovo were the three vendors which recorded a 12.9%, 3.3% and 0.8% rise in their shipments, respectively, in the September quarter.
IDC said that the desktop and workstation categories grew by 23.4% and 17.6% year-over-year, respectively but the notebook category declined by 19.5% in the same period as the demand for notebooks has softened across segments, forcing vendors to clear the inventory .
The research firm reported that all segments declined, except the government, which grew by 91.5% year-over-year as government orders materialized. The consumer segment shipped 2.1 million units but registered a 10.9% year-over-year decline. Likewise, the commercial segment was impacted due to a delay in enterprise orders as well as muted SME sentiment, leading to a decline of 12.5%.
“With schools and colleges opening, the consumer segment is seeing tapering demand for the past few months as demand for remote learning has come to a standstill. A weakened currency is resulting in rising device costs and pricing pressure for vendors,” said Bharath Shenoy, Senior Market Analyst, IDC India.
Shenoy said vendors delayed price increases in the July-September quarter due to online sales, but the discounts were not lucrative enough as compared to the previous years. “Vendors are expected to increase prices in Q4, which might further dampen sentiment,” he cautioned.
The report mentioned that the demand for premium notebooks (>US$1,000/~Rs 81,600) declined sharply by 28.5% year-over-year in the commercial segment, but premium consumer notebooks grew by 9.8%. The strong performance by Apple and good traction for Asus’ gaming notebooks were the key drivers.
South Korean handset maker Samsung’s shipments fell 0.8% year-over-year in Q3. By contrast, Chinese brands Vivo (-19.5%), Realme (-18.1%), and Xiaomi (-18%) had the sharpest fall, while Oppo was the only brand to grow 6.1% year-over-year in the quarter. the IDC data showed.
Vendor-wise, HP Inc led the PC market with a 23.9% share in Q3 but saw its share in both consumer and commercial categories decline, yet it led these two categories.
Lenovo overtook Dell for the second position with a 21.3% share with a strong performance in the consumer and SME categories.
Dell, in the third position, cornered a 16% share. It lost steam in the consumer category and trailed in second position behind HP in the commercial category.
Acer stood fourth with a 10.9% share and benefitted in the commercial desktop category from the fulfillment of several enterprises and government orders, as well as, from traction in the Government eMarketplace space
Asus maintained the fifth position with a share of 9.9%, an increase from 8.5% it had in 3Q21. It benefitted from online sales and offline expansion.
“We expect a slowdown in PC procurement from the IT/ITES sector, which is typically one of the biggest buyers. Similarly, we are witnessing some sluggishness in SME procurement as they are challenged by inflation and a credit crunch. But the government and education segments are seeing some orders which can drive small volumes in the commercial segments in the next two quarters,” said Navkendar Singh, Associate Vice President, Devices Research, IDC India, South Asia & ANZ.
| India PC Market, Top Five Companies, Market Share, Year-over-Year Growth 3Q22 (Shipments are in thousands of units) | |||||
| Company |
3Q22 Shipments | 3Q22 Market Share | 3Q21 Shipments | 3Q21 Market Share | Year-over-Year unit change (3Q22 vs 3Q21) |
| 1. HP Inc. | 940 | 23.9% | 1,268 | 28.5% | -25.9% |
| 2. Lenovo | 837 | 21.3% | 830 | 18.6% | 0.8% |
| 3. Dell Technologies | 630 | 16.0% | 1,059 | 23.8% | -40.5% |
| 4. Acer Group | 431 | 10.9% | 381 | 8.6% | 12.9% |
| 5. Asus | 389 | 9.9% | 376 | 8.5% | 3.3% |
| Others | 708 | 18.0% | 539 | 12.1% | 31.3% |
| Total | 3,934 | 100.0% | 4,455 | 100.0% |
-11.7% |
In the consumer segment, early Diwali helped gain momentum in September, but the next two quarters are expected to be slow, Singh said. “Supply disruptions are no longer an immediate concern, but softening of demand across segments is a major worry.”
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