BANGALORE, May 14, 2012 -The India PC market shipments for Q1 2012 (January – March) stood at 2.63 million units, representing a sequential gain of 7.7% over the previous quarter while the year-on-year growth was noted to be at 3.5%.

According to Kiran Kumar, Sr. Analyst at IDC, "The growth in PC volumes are reflective of the rise in consumption levels and investment activity for PCs in the recent past. A spurt in commercial spending was backed by a revival in consumer sentiment towards March." Having said that, the white box (assembled) PC market continues to be reeling under pressure on the price front owing to a significant surge in hard disk prices and subsequent shift in consumer purchase towards Portable PCs. The white box PC market has dipped to 37.6% share of the overall Desktop PC business in Q1 2012 compared to 45.4% share as noted in Q1 2011.

Figure 1

In terms of driving factors, Dr. Adwaita Menon, Associate Research Director, IDC commented, "Commoditization is driving growth into semi-urban markets, which have shown faster growth than metros. Vendors are focusing on high-margin products such as AIOs and small portables to maintain the growth momentum and margins."

Backed by one of the biggest deals in India i.e. ELCOT, Lenovo clinched the top spot in the India PC market with a 15.8% market share in Q1 2012. Dell secured the second spot with 15% share, followed very closely by HP with a 14.9% share. "Dell continues to retain the brand recall amongst customers. However, HP's feet-on-street approach to pro-actively engage channel partners has paid off well in the recent past. Further a good balance of product mix at attractive price bands has helped HP grow higher than the market average in Q1," commented Kiran.

For more information on the "India PC market" please contact:

Dr. Adwaita Govind Menon, Associate Director & Head – New Products, amenon@idc.com or Kiran Kumar, Senior Market Analyst, kkumar@idc.com

About IDC

International Data Corporation (IDC) is the premier global provider of market intelligence, advisory services, and events for the information technology, telecommunications, and consumer technology markets. IDC helps IT professionals, business executives, and the investment community make fact-based decisions on technology purchases and business strategy. More than 1,000 IDC analysts provide global, regional, and local expertise on technology and industry opportunities and trends in over 110 countries. For more than 48 years, IDC has provided strategic insights to help our clients achieve their key business objectives. IDC is a subsidiary of IDG, the world's leading technology media, research, and events company. You can learn more about IDC by visiting www.idc.com.

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