International Data Corporation (IDC) India said in its latest quarterly tracker published on Thursday that India shipped 3.7 million PCs, including laptops, desktops and workstations, in the three months ended June.
Although shipments grew by 17.9% year-on-year (YoY), IDC noted that this is the first time that shipments have dropped below 4 million in the last four quarters.
The research firm attributed the decline to a reduction in demand in consumer as well as some commercial sectors.
IDC said demand from government agencies remained strong due to “spillover orders” from the first quarter.
Notebooks had 2.6 million unit shipments during the quarter, though it grew by only 7.3% YoY compared to the 30% YoY average growth seen in the previous three quarters.
The Enterprise segment grew at a rate of 14.9%, which was significantly lower than the growth seen in the last three quarters. Growth in the SMB segment was also lower than the previous two quarters.
In the consumer segment, higher footfall in offline channels contributed to the growth, however, it lost momentum as many schools resumed offline classes.
Bharat Shenoy, Senior Market Analyst, PC Devices, IDC India Said that the college is expected to open in the third quarter of this year, sellers are counting on “back-to-college promotions.”
Online sales are also expected to start towards the end of Q3 and it is expected that this will cause some movement in the consumer segment.
That said, Shenoy noted that higher channel inventory is a concern and they could force sellers to make inventory corrections over the next few months.
The economic slowdown has also affected the PC industry.
“Inflation, fear of recession, and dollar price volatility can slow down PC buying, especially among startups. Large enterprises are buying but delaying their purchases,” said Navendra Singh, Associate Vice President, Devices Research, IDC India, South Asia and ANZ said.
In terms of market share, HP was the market leader in the third quarter with 1.5 million units, accounting for 30.8% of shipments. HP saw growth in both the enterprise and government sectors, even though the consumer segment saw a slight decline in shipments.
Dell was the second leading vendor with 21.6% market share, followed by Lenovo (19.6%), Acer (8.9%), and Asus (6.1%).
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