The India traditional PC market, inclusive of desktops, notebooks, and workstations delivered another strong quarter (Apr-Jun 2022) shipping over 3.7 million units with a year-over-year (YoY) growth of 17.8%, according to new data from the International Data Corporation (IDC) Worldwide Quarterly Personal Computing Device Tracker.
The government segment was strong due to spillover orders from the previous quarter, but the other segments are slowing, with channel inventory increasing. While the notebook category continued to be the volume driver with 2.6 million units, its growth rate reduced to 7.3% YoY compared to over 30% YoY on average for the last three quarters. The desktop category, however, continued its strong run, shipping more than one million units for a second consecutive quarter.
The demand for PCs was rather positive through April, but it slowed in the second half of the quarter, as the reopening of colleges got pushed to 3Q22. The enterprise segment grew by 14.9%, much lower than the previous three quarters as order materialization got delayed. Similarly, the SMB growth rate was lower than in the previous two quarters, and channel inventory increased considerably as demand tapered.
“Online channels have been softening over the last few quarters. While high footfall in offline channels led to a positive quarter for consumers, the growth tapered as schools started to open, thereby leading to reduced remote learning demand,” said Bharath Shenoy, Senior Market Analyst, PC Devices, IDC India.
Shenoy added, “As the opening of colleges got delayed to the third quarter this year, vendors are still hoping that back-to-college promotions will bring back consumer momentum. Online sales are also expected to start at end of 3Q22. However, high channel inventory is a matter of concern, and an inventory correction is inevitable in the next few months.”
Top 5 Company Highlights: 2Q22
HP Inc. shipped over 1.15 million units and continued to lead the overall PC market with a share of 30.8% in 2Q22. Its consumer share witnessed a marginal decline in share though it continued to lead the segment with a good margin. While government deals helped its commercial desktop performance, some backlogged enterprise orders helped it perform strongly in the commercial notebook category.
Dell Technologies continued to stay second behind HP with a market share of 21.6% share with 15.2% YoY growth in 2Q22. While it continued its strong run in the commercial segment with a share of 27.1%, its performance wasn’t as strong in the consumer segment. The vendor led the enterprise notebook category with a share of 39.7%, driven by strong demand from its global accounts.
Lenovo continued to hold its third position behind Dell in 2Q22 with a share of 19.6%. The vendor grew an impressive 38.8% YoY in the consumer segment but lost some momentum in the commercial segment due to delayed orders. The vendor still performed well in the SME segment, where it grew by 51.8% YoY and was second behind HP.
Acer Group has been losing ground, but it did retain the fourth position with an 8.9% market share in 2Q22. It continued to do well in the commercial desktop category, as it witnessed a YoY growth of 66.7%. However, the vendor has been struggling in the consumer segment, as it stood sixth behind Apple with a meager share of just 3.8%.
ASUS maintained the fifth position with a share of 6.1% in 2Q22, as it grew by a healthy 53.3% YoY. The offline expansion has helped the brand maintain momentum and grow by more than 50% YoY in the consumer segment for a second consecutive quarter. The vendor also has been doing great in the branded gaming category and is expected to maintain its momentum in the upcoming quarters.
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India PC Market, Top Five Companies, Market Share, Year-over-Year Growth 2Q22 (Shipments are in thousands of units) |
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Company |
2Q22 Shipments |
2Q22 Market Share |
2Q21 Shipments |
2Q21 Market Share |
Year-over-Year unit change (2Q22 vs 2Q21) |
|
1. HP Inc. |
1,153 |
30.8% |
1,066 |
33.6% |
8.1% |
|
2. Dell Technologies |
807 |
21.6% |
701 |
22.1% |
15.2% |
|
3. Lenovo |
734 |
19.6% |
564 |
17.8% |
30.0% |
|
4. Acer Group |
332 |
8.9% |
276 |
8.7% |
20.7% |
|
5. Asus |
230 |
6.1% |
150 |
4.7% |
53.3% |
|
Others |
486 |
13.0% |
418 |
13.2% |
16.3% |
|
Total |
3,741 |
100.0% |
3,175 |
100.0% |
17.8% |
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Source: IDC Worldwide Quarterly Personal Computing Device Tracker, August 2022 |
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Commenting on the outlook, Navkendar Singh, Associate Vice President, Devices Research, IDC India, South Asia & ANZ said, “Increased channel inventory and slowing demand is a matter of concern in both the consumer and commercial segments. High inflation, fear of recession, and dollar price fluctuations might slow PC procurement, especially among startups. Big enterprises are buying but delaying their purchases. Still, the upcoming online festivals might be a ray of hope in the consumer segment, while the strong momentum in the government segment and the existing pipeline in the enterprise segment are something to look up to in the commercial segment.”
Notes:
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Shipments include shipments to distribution channels or end-users. OEM sales are counted under the company/brand under which they are sold.
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Enterprise segment refers to all companies with 500 and above employees, and SMBs are referred to as companies below 500 employees.
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Traditional PCs include Desktops, Notebooks, and Workstations and do not include Tablets or x86 Servers. Detachable Tablets and Slate Tablets are part of the Personal Computing Device Tracker but are not addressed in this press release.
