Rising Enterprise Demand Drives PC Market Growth

by CXOtoday News Desk    Aug 28, 2014

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An increased demand from the business segment as well as intake of low-priced computers has helped the PC market to grow nearly 24% in Q2 2014 over the previous quarter. According to analyst firm IDC, the PC market has rebounded, signaling a pickup in sentiment due to a clear mandate in recent elections, which comes as a relief after a sluggish start in the first quarter of this fiscal year. The overall India PC shipments for the quarter stood at 2.55 million units – a substantial growth over Q1 2014 and year-on-year drop of 27.8% over Q2 2013, says IDC.

The commercial PC segment emerged stronger against expected performance with 1.38 million units shipped in Q2 2014 with a quarter-on-quarter growth of 34.5% over Q1 2014, said the research firm, which added that a clear mandate in elections signalled a mark of recovery in the economy. Against last calendar year, business prospects are expected to remain moderately better in the coming six months.

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“The overall sentiments have picked up and IDC observes improved discretionary spending from consumers across devices. It is expected to have a positive influence on the market as we enter the festival season starting Onam,” comments Manish Yadav, Market Analyst, Client Devices, IDC India. The retail and online acceptance of new product category such as Bing SKU facilitated growth this quarter, he added.

HP which has been struggling in its PC business over the last several quarters, has bounced back to the No.1 spot, with a 29.5 per cent marketshare, almost 10 percentage points higher than Dell, according to IDC. Surprisingly, Dell’s marketshare went down from 23.1 per cent in the first quarter to 19.1 per cent in the June-ended quarter, it said.

The report states, HP’s growth was driven by large deals that it won in some of the Indian states. Additionally, the company’s strategy of pricing products competitively and ensuring higher number of sale from distributors, helped it to reach the top spot, according to Manish Yadav, Market Analyst, Client Devices, IDC India. said Yadav.

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The quarter also saw corporate PC segment emerging stronger with 1.38 million units shipped, a quarter-on-quarter growth of 34.5 per cent over the first quarter. The consumer PC market recorded 1.16 million units, a quarter-on-quarter growth of 12.8% over the previous quarter.

Dell, which is realigning its India distribution model, is progressively working from a pure-play PC vendor to focusing more on storage, security and networking devices, which would take some time to bear fruit, according to market watchers.

Lenovo took the third spot with 13.9 per cent market share in the quarter, followed by Acer with 11.9 per cent and the rest by other PC makers.

IDC forecasts that the government’s positive outlook towards business would see corporate spending more, coupled with the festival season to drive sales in the remaining quarters.