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PC shipments climb in India

by Stuart Wilson, Monday 7 October 2013

PC shipments in India hit 3.53 million units in the second quarter of 2013 – up 24% year-on-year. This also represented a 30.2% sequential surge compared to the first quarter of 2013, according to data from research house IDC. The consumer market showed growth in the second quarter compared to the first quarter of 2013. HP remained the dominant brand within India’s PC market.

Manish Yadav, market analyst at IDC, said: "The second quarter had a sluggish start in April owing to inventory concerns coupled with shift in share of wallet towards commodities like gold and other consumer devices that were riding high on trade-back schemes and other time-to-time discount offers.”

“Further, the announcement of new tax policies, such as the Local Body Tax in Mumbai and suburban areas, halted shipment growth in May. But June largely reversed this stillness aided by back-to-school campaigns and loading of stocks across partners in preparation to the impending price hike on account of rupee volatility," Yadav added.

HP led the second quarter vendor rankings according to IDC, with the vendor accounting for 34.1% of PC shipments. Dell took second place with 11% market share followed by Acer with 10.4% and Lenovo with 9.3%. Other brands accounted for the remaining 35.2% of total PC shipments.

Kiran Kumar, research manager at IDC, added: "State-led manifesto driven spending on notebooks steered commercial investments in the India PC market in the second quarter of 2013. Special projects currently being executed in states like UP, Rajasthan, and Tamil Nadu accounted for roughly one third of the total PC market size in the second quarter.”

“However, the organic demand for PCs in India outside special projects has weakened, which remains a cause of concern for PC vendors. Further, the rupee slide derailed enterprise spending, as the investment decisions remained seemingly delayed across most of the verticals," Kumar added.

HP remained dominant across all segments in commercial and consumer PC business in India, according to IDC.

Kumar added: "Though the enterprise PC business was primarily driven by the single largest notebook deal in the state of Uttar Pradesh, the vendor [HP] also led the consumer PC business in India with their well-established channel network and incentive programmes tied with their effective pricing strategies.”

Commenting on Dell’s position, Yadav stated: "Their presence at the entry level price-band has given them much room to drive their volumes. Also, the vendor’s continued efforts in increasing retail visibility and their effective channel positioning, was ably supported by their marketing campaigns."

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