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Publication date: 16 Nov 2022

India’s PC Market Declined by 11.7% YoY in Q322 After Eight Consecutive Quarters of Growth, According to IDC

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INDIA, November 17, 2022 – The India traditional PC market, inclusive of desktops, notebooks, and workstations declined by 11.7% year-over-year (YoY) in Q32022 (Jul-Sep) after eight consecutive quarters of growth despite strong shipments of 3.9 million units, according to new data from the International Data Corporation (IDC) Worldwide Quarterly Personal Computing Device Tracker. All segments declined except the government, which grew by 91.5% YoY as government orders materialized, leading to strong growth for the third consecutive quarter. While the desktop and workstation categories grew by 23.4% and 17.6% YoY respectively, the notebook category declined by 19.5% YoY. The demand for notebooks has softened across segments, forcing vendors to clear inventory.

The consumer segment shipped 2.1 million units with online sales helping in picking up momentum at the end of September. However, that was not sufficient to prevent a 10.9% YoY decline. Similarly, the commercial segment was impacted due to a delay in enterprise orders as well as muted SME sentiment, leading to a YoY decline of 12.5%.

While the demand for premium notebooks (>US$1,000) declined sharply by 28.5% YoY in the commercial segment, premium consumer notebooks grew by 9.8% YoY. The strong performance by Apple and good traction for ASUS’ gaming notebooks were the key drivers.

“With schools and colleges opening, the consumer segment is seeing tapering demand for the past few months as demand for remote learning has come to a standstill. Weakened currency is resulting in rising device costs and pricing pressure for vendors. As the online sales were going on, vendors delayed price increases in Q3, but the discounts weren’t as lucrative as in previous years either. Vendors are expected to increase prices in Q4, which might further dampen sentiment,” said Bharath Shenoy, Senior Market Analyst, IDC India.

Top 5 Company Highlights: 3Q22

HP Inc. shipped over 940,000 units and continued to lead the overall PC market with a share of 23.9% in 3Q22. Its consumer share dipped to 22.1% and commercial share dipped to 25.9% as it focused on inventory corrections, but it continued to lead both segments.

Lenovo overtook Dell for the second position with a strong showing in the consumer segment where it continued to hold its second position with a share of 18.8% thanks to online sales. In a quarter of softening SME procurement, Lenovo led the segment with a share of 32%.

Dell Technologies slipped to the third position as it lost momentum in the consumer segment as it decided to stay away from online sales. But it stood at a close second behind HP in the commercial segment with a share of 25.3%, where it continued to have good traction.

Acer Group continued to hold the fourth position with a share of 10.9%. Acer witnessed strong traction in the commercial segment as it grew by 28.2% YoY there. It led the commercial desktop category with a share of 31.3%, driven by fulfillment of several enterprise and government orders plus good traction in GeM space (Government eMarketplace) for its commercial desktops.

ASUS maintained the fifth position with a share of 9.9%, much higher than the 8.5% share it had in 3Q21. The vendor was third in the consumer segment with a share of 18.2%, marginally behind Lenovo. In the consumer notebook category, it managed to hold the second position behind HP and ahead of Lenovo with a share of 20.6%. The vendor performed well during online sales and has also been expanding its offline reach, which helped it to gain share.

India PC Market, Top Five Companies, Market Share, Year-over-Year Growth 3Q22 (Shipments are in thousands of units)

Company

3Q22 Shipments

3Q22 Market Share

3Q21 Shipments

3Q21 Market Share

Year-over-Year unit change (3Q22 vs 3Q21)

1. HP Inc.

940

23.9%

1,268

28.5%

-25.9%

2. Lenovo

837

21.3%

830

18.6%

0.8%

3. Dell Technologies

630

16.0%

1,059

23.8%

-40.5%

4. Acer Group

431

10.9%

381

8.6%

12.9%

5. Asus

389

9.9%

376

8.5%

3.3%

Others

708

18.0%

539

12.1%

31.3%

Total

3,934

100.0%

4,455

100.0%

-11.7%

Source: IDC Worldwide Quarterly Personal Computing Device Tracker, November 2022

Commenting on the outlook, Navkendar Singh, Associate Vice President, Devices Research, IDC India, South Asia & ANZ said, “We expect a slowdown in PC procurement from the IT/ITES sector, which is typically one of the biggest buyers. Similarly, we are witnessing some sluggishness in SME procurement as they are challenged by inflation and a credit crunch. But the government and education segments are seeing some orders which can drive small volumes in the commercial segments in the next two quarters. In the consumer segment, early Diwali helped gain momentum in September, but the next two quarters are expected to be slow. Supply disruptions are no longer an immediate concern, but softening of demand across segments is a major worry.”

Notes:

  • Shipments include shipments to distribution channels or end-users. OEM sales are counted under the company/brand under which they are sold.
  • Enterprise segment refers to all companies with 500 and above employees, and SMBs are referred to companies below 500 employees.
  • 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.

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For more information about this report, trends, or questions for analysts, please contact Shivani Anand Senior Marketing Specialist at sanand@idc.com . You can also follow IDC India’s Twitter and LinkedIn  pages for regular updates on IDC’s research & events.

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