Reading time ( words)
The overall India traditional PC shipments for CY 2017 stood at 9.56 million units, with a 11.4% year-on-year growth, as per IDC’s latest Quarterly Personal Computing Devices Tracker. This growth was primarily driven by the increase in the quantum of large projects and surge in shipments post the introduction of GST reforms.
The India traditional PC market in H1 CY2017 declined by 5.2% compared to H1 CY2016, owing to sluggish consumer demand due to Demonetization and uncertainty surrounding GST implementation. 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 H2 CY2017.
The overall consumer PC market registered 48.0% shipment share in CY 2017, the consumer category also recorded a growth of 8.5% in unit shipments compared to last 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”, says Manish Yadav, Associate Research Manager, Client Devices, IDC India.
The overall commercial PC market recorded 52.0% shipment share in CY2017, where the category grew by 14.1% 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”, adds Yadav.
Top 3 Company Highlights:
HP Inc. maintained its leadership position in the overall India traditional PC market with 29.9% share in CY 2017 and recorded an overall growth of 17.4% year-on-year in CY 2017. The vendor remained dominant in the overall consumer PC business with 29.2% share and an 18.0% year-on-year growth in CY 2017 owing to its growing brand image and depth penetration via its growing partner base. The vendor also led the commercial segment in the last two years by clinching volumes in special projects such as ELCOT and strong presence in enterprise accounts, which assisted HP Inc. in recording a 30.6% market share along with a growth of 16.9% year-on-year in CY 2017.
Dell took the second spot, with a 22.4% share in the overall India traditional PC market in CY 2017. The vendor got impacted by GST and BIS certification in CY 2017, however with increased shipment and differentiated channel programs, the vendor bounced back with 7.3% growth year-on-year in overall traditional PC market in CY 2017. Dell continues to dominate the growing categories like gaming notebook with 26.8% Year-on-year growth. The vendor also recorded 22.1% shipment share in CY 2017 in overall commercial PC business with increasing investments in channel, supported by both distribution and partner led GTMs. Also, its growth in verticals like BFSI and government in H2 2017 are welcome sign of increasing customer base for the vendor.
Lenovo holds on to third spot, gaining 2.6%age points year-on-year to record a market share of 20.2% in CY 2017 in overall India traditional PC market. In the overall consumer category, the vendor recorded 16.7% market share in CY 2017 on the back of growing online presence, innovative products and new efforts on providing improved after sales services via new channels, made the vendor stand out from their competitors. Additionally, with the execution of state-owned manifesto projects, gradually bringing back the confidence in enterprise accounts by offering bundle services along with new products, assisted the vendor in a strong growth of 40.1% year-on-year with a market share of 23.4% in the overall traditional commercial PC market in CY 2017.
India PC market outlook:
IDC expects the overall India PC market to decline in CY 2018 over CY 2017, on the back of 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. We expect 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”, says Navkendar Singh, Associate Research Director, IDC India.
IDC India Q4 2017:
The overall India traditional PC market for Q4 2017 stood at 2.60 million units, i.e. quarter-on-quarter decline of 14.0% over Q3 2017 and however an year-on-year growth of 35.2% over Q4 2016. Increase spending through special projects and spill over shipment drove overall sales in Q4.
About IDC Trackers
IDC Tracker products provide accurate and timely market size, company share, and forecasts for hundreds of technology markets from more than 100 countries around the globe. Using proprietary tools and research processes, IDC's Trackers are updated on a semiannual, quarterly, and monthly basis. Tracker results are delivered to clients in user-friendly excel deliverables and on-line query tools. The IDC Tracker Charts app allows users to view data charts from the most recent IDC Tracker products on their iPhone and iPad.
International Data Corporation (IDC) is the premier global provider of market intelligence, advisory services, and events for the information technology, telecommunications, and consumer technology markets. With more than 1,100 analysts worldwide, IDC offers global, regional, and local expertise on technology and industry opportunities and trends in over 110 countries. IDC's analysis and insight helps IT professionals, business executives, and the investment community to make fact-based technology decisions and to achieve their key business objectives. Founded in 1964, IDC is a subsidiary of IDG, the world's leading technology media, research, and events company. To learn more about IDC, please click here.