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India PC shipments fall below 5m for the first time in four quarters

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India PC shipments fall below 5m for the first time in four quarters

India’s PC shipments for the second quarter of 2022 dropped to 4.6 million units, a fall of 12%, the technology analyst firm Canalys says.

The company, which includes desktops, notebooks and tablets when counting PC shipments, said in a statement this was the first time shipments had fallen below five million units in the last four quarters.

Notebooks were the biggest contributor with 2.6 million units, although this was only 2% year-on-year growth. By contrast, desktops saw 70% year-on-year growth, although this amounted to only 900,000 units shipped.

Tablet shipments grew 9% year-on-year to 1.1 million units.

As iTWire reported in July, global shipments of traditional PCs fell by 15.3% in the second quarter to 71.3 million units; this, however, does not include tablets or x86 servers.

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Canalys analyst Ashweej Aithal said consumer demand fell as schools across the country reopened.

“The consumer market had a sharp dip of 12% in Q2, ending seven consecutive quarters of record expansion. In Q2, the segment accounted for 48% of the Indian PC market, down from 61% in Q2 2021,” he said.

“Reduced demand for tablets and notebooks contributed to the consumer market decline, with shipments of the two categories down 23% and 11% respectively.

“HP maintained its dominance in this sector with a 23% market share, helped by aggressive retail outlet expansion across the nation. Lenovo took second place with robust growth of 19% year-on-year, primarily due to the performance of its notebook line which carries a significant offline presence.”

Canalys said the commercial market had performed well, growing by about 50% year-on-year.

“The high commercial market growth is also due to poor performance in the second quarter of 2021 when the pandemic hit hard,” said Aithal.

“With a 27% market share, HP led this segment, supported by a well-run local supply chain apparatus. Lenovo held second place with 20% market share, but penetration into the education sector still presents the vendor with a significant challenge.

“Leading PC vendors have prioritized investments in local manufacturing to capture opportunities in commercial business. This is especially the case in government procurement and to be eligible for the ‘Make in India’ PLI (Production Linked Incentives) scheme from the Indian government.

“HP expanded local notebook manufacturing in the country, which has boosted its presence in public sector procurement orders. Lenovo also aims to have a stronger local supply for tablets and notebooks with its third production line-up to seize the education market. Further, Acer has partnered with Dixon technologies, an eligible player for the PLI scheme, for notebook production.”A

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