IDC expects decline in Indian PC market due to sluggish enterprise demand

Markets, Stocks, SharesPC shipments in India grew 11.4 per cent in 2017 to 9.56 million units from the previous year, driven primarily by the increase in the quantum of large projects and surge in shipments post GST reforms.The PC market in the country witnessed a growth of 35.2 per cent to 2.60 million units in the October-December 2017 quarter compared to the year-ago period with increase spending through special projects and spill over shipment driving overall sales in the said quarter.“The India traditional PC market in H1 CY2017 declined by 5.2 per cent compared to H1 CY2016, owing to sluggish consumer demand due to demonetisation and uncertainty surrounding GST implementation,” IDC said in a report.However, early kick start of festival offers by e-trailers, incremental consumer spill over demand post GST implementation and large state-owned special projects drove the PC market in the second half of 2017, it added.IDC expects the PC market in India to decline in 2018 compared to 2017, impacted by fewer special projects, sluggish enterprise demand along with low SMB refresh demand.“On the consumer business, opportunity is ripe for vendors to drive penetration and increase presence in growing categories like gaming and convertible,” IDC India Associate Research Director Navkendar Singh said.IDC expects e-tail channel to contribute in increasing the PC penetration with its presence growing in lower tier cities and pricing strategies to address new PC buyers, Singh added.The consumer segment — which accounted for 48 per cent of the total shipment — registered 8.5 per cent rise in 2017 compared to the previous year.“Consumers were somewhat hesitant during the GST implementation phase in H1 2017. However, upbeat demand towards discretionary spending on the back of seasonality and re-building of inventories post festive season drove growth in H2 2017,” IDC India Associate Research Manager (Client Devices) Manish Yadav said.The commercial category grew by 14.1 per cent in unit terms year-on-year.“Commercial spending seems to be leaving the GST-related glitches behind with increased demand across segments like SMB and enterprise,” Yadav said.HP maintained its leadership position in the overall India PC market with 29.9 per cent share in 2017 and recorded a year-on-year growth of 17.4 per cent.Dell took the second spot with a 22.4 per cent share, followed by Lenovo (20.2 per cent, Acer (12.2 per cent) and Apple (3.6 per cent).

Source: Business Standard