PC sales drop 25% in Q1 of 2014 on poor demand

Written by fe Bureau | Bangalore | Updated: May 24 2014, 10:31am hrs
Overall personal computer (PC) sales in the country dropped 25% in the first quarter of 2014 due to poor end-user demand, driven by factors such as high inflation, soaring prices and rupee fluctuations. The only silver lining was a marginal rise in the commercial PC segment.

Overall PC shipments in Q1 2014 stood at 2.03 million units, a year-on-year drop of 25.2%, according to a report by International Data Corporation (IDC).

The commercial PC segment recorded shipments of 1.02 million units, a sequential increase of 4.1% from Q4 of 2013.

The overall commercial PC market showed first signs of improvement over the last 9-10 months as investment activities have improved in the banking and the government verticals. Vendors are optimistic about the overall market sentiment and believe it will pick up gradually among other verticals too in the course of 2014, said Kiran Kumar, research manager of Client Devices at IDC India.

Consumer PC shipments, however, witnessed a 4.3% sequential drop from Q42013, selling 1.01 million units in the first quarter of 2014.

Consumer sentiments plummeted further due to high inflation and soaring prices owing to rupee fluctuations. Concerns over the economic conditions remained a key drag and Q1 was no different, said Kumar.