India’s PC market sees 2.6% growth in Q1 2024 driven by govt. procurement

Significant government procurement contributed to a 56.9% increase in the government segment

May 16, 2024

Consumer sales improved by 4.4% year-on-year, marking the third consecutive quarter of growth

HP led the market with a 30.1% share, followed by Dell Technologies at 17.5%, Acer Group at 15.4%, Lenovo at 15.1%, and Asus at 5.9%

The commercial segment experienced a modest growth of 1.3% year-on-year despite declining enterprise orders

The PC market is expected to recover by the end of 2024, driven by refresh buying from the enterprise segment and increased local assembly of commercial notebooks

Despite challenges, the PC market in India has shown resilience, with laptop and desktop sales growing by 2.6% in the first quarter of 2024. This growth was driven by significant government procurements and improved consumer sales. The International Data Corporation’s (IDC) quarterly device tracker reveals that the PC market in India recorded 3.07 million shipments from January to March, up from 2.99 million in the same period last year. Notably, the government segment saw a 56.9% surge, offsetting the decline in enterprise orders.

Strategic moves by vendors to clear inventory and manage shipment delays played a significant role in the PC market dynamics. The commercial segment experienced a modest growth of 1.3% year-on-year, while consumer sales rose by 4.4% due to low volumes in the previous year. Bharath Shenoy, Research Manager at IDC India & South Asia, noted, “The consumer segment saw its third consecutive quarter of YoY growth. However, demand softened from the high double-digit growth in the previous two quarters to under 5%. Some vendors faced shipment delays, leading to lower than expected sell-in.”

In terms of market share, HP led the market in Q1 with a 30.1% share, dominating both the commercial and consumer segments with shares of 32.4% and 26.9%, respectively. Dell Technologies came in second with a 17.5% share, followed by Acer Group at 15.4%, Lenovo at 15.1%, and Asus at 5.9%.

Experts state that the commercial segment is struggling due to reduced PC procurement from the IT/ITES sector and global accounts, which traditionally drive significant volumes. However, the market is expected to start recovering by the end of 2024 with refresh buying from the enterprise segment. Additionally, vendors have expedited the local assembly of commercial notebooks, which will help reduce imports in the coming quarters. 

Source: Economic Times

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