India PC Shipments (Q2, 2013): IDC
The overall India PC shipments for Q2 2013 stood at 3.53 million units, representing a substantial year-on-year growth of 24.0% over Q2 2012 and a quarter-on-quarter surge of about 30.2 % over Q1 2013.
State-led manifesto driven spending on notebooks steered commercial investments in the India PC market in Q2 2013. Special projects currently being executed in states like UP, Rajasthan, and Tamil Nadu accounted for roughly one third of the total PC market size in Q2. However, the organic demand for PCs in India outside special projects has weakened, which remains a cause of concern for PC vendors. Further, the rupee slide derailed enterprise spending, as the investment decisions remained seemingly delayed across most of the verticals.
The consumer market in Q2 witnessed a marginal growth over Q1 2013 aided by back-to-school campaigns and loading of stocks across partners in preparation to the impending price hike on account of rupee volatility.
HP recorded its highest ever quarterly market share with an exceptional 34.1% share in Q2 2013 dominating both consumer and enterprise segments
Even with Dell globally going south, Dell in India, took the second position with a share of 11.0% in Q2 2013. Their presence at the entry level price-band has given them much room to drive their volumes.
Acer took third with a market share of 10.4% propelled by large deals in the states of Tamil Nadu and Rajasthan, which fueled their growth in the commercial PC market in Q2
Q3 has historically witnessed strong consumer buying in lieu of the forthcoming festive season in various parts of the country. This is also well aided by the back-to-school/college season and related campaigns undertaken by vendors and partners across different regions. IDC expects 2013 to be no different. Consumer sentiments have peaked at the right time as they begin to reconcile with the market reality on inflation and related pressures. Retail walk-ins have improved and share of consumer wallet looks to move back to PCs, which is an encouraging sign for the consumer PC vendors.
However, the PC business continues to thrive on wafer thin margins and it is still early to comment on the success of new form factors, which were anticipated to drive the overall value of this business. Also, outside special projects, demand from enterprises and government remain largely suppressed painting a gloomy scenario on commercial PC business, in the near future.