Large Enterprises, Govt Projects Drive India's PC Market: IDC
India’s PC shipments for CY 2017 stood at 9.56 million units, with a 11.4 percent 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.
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,” said Navkendar Singh, Associate Research Director, IDC India.
The overall India traditional PC market for Q4 2017 stood at 2.60 million units, i.e. quarter-on-quarter decline of 14.0 percent over Q3 2017 and however an year-on-year growth of 35.2 percent over Q4 2016. Increase spending through special projects and spill over shipment drove overall sales in Q4, said IDC.
The India traditional PC market in H1 CY2017 declined by 5.2 percent 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 percent shipment share in CY 2017, the consumer category also recorded a growth of 8.5 percent 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″, said Manish Yadav, Associate Research Manager, Client Devices, IDC India.
The overall commercial PC market recorded 52.0 percent shipment share in CY2017, where the category grew by 14.1 percent 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.
HP Inc. maintained its leadership position in the overall India traditional PC market with 29.9 percent share in CY 2017 and recorded an overall growth of 17.4 percent year-on-year in CY 2017. The vendor remained dominant in the overall consumer PC business with 29.2 percent share and an 18.0 percent 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 percent market share along with a growth of 16.9 percent year-on-year in CY 2017.
Dell took the second spot, with a 22.4 percent 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 percent 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 percent 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.
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