Education Projects Driving PC Sales In India

by CXOtoday News Desk    Mar 09, 2015

computer

Special education projects by the government and investment by academic institutes are driving the PC market which many believed is on the verge of existence. As research firm IDC stated, despite projections of muted first quarter sales, India’s PC market is expected to make a comeback during the year on account of special education projects and improving business environment for the enterprise segment. PC shipments had touched 9.6 million units last year, down 16.5 per cent compared to 2013, the research firm said.

According to the research firm, although inventory issues and constrained buying from end-users is likely to impact the sales for the first three months of the year, the overall PC market in the country to see growth this year, compared to 2014.

Government and government-aided education buying will hold the key to growth in the commercial PC business. As IDC Research Manager Kiran Kumar notes, “On the consumer business, opportunity is ripe for vendors to drive penetration and improve overall business. We expect new entry level price points to be created for full-blown PCs with innovative form factors and that will continue to drive excitement in this category.”

Also, subsiding inflation and rapid growth of online trade coupled with the introduction of sub-$ 400 devices created just the right buzz for the PC business in 2014, Kumar said.

IDC sees the overall commercial PC market clocked 4.7 million units last year, declining 29.6 per cent from 2013. “The primary reason for the plunge was that barring fulfilments for ELCOT Phase III, the contribution of large education projects was not exciting in 2014 compared to 2013,” IDC Market Analyst Manish Yadav said.

This year seems to be a turning point in PC adoption in education as another AMI Partner report also noted that as educational institutes to become IT-savvy, they are increasingly looking at investing in PCs to automate their learning process (e.g. exam management, assessment, online tests, collaboration, digital assessment, social learning exchange, etc). Hence, the PC market in recent times gained a lot of momentum in this segment. Moreover, as government is investing heavily in large scale education projects, this is driving the growth of PCs.