Bad Q3 for India PC Market, slumps 8.3%: IDC

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'Vendors continued to receive a boost in shipments as part of a large education project in UP.' (AP) 'Vendors continued to receive a boost in shipments as part of a large education project in UP.' (AP)
Summary'Vendors continued to receive a boost in shipments as part of a large education project in UP.'

PC shipments in India fell by 8.3 per cent in comparison to the last quarter even as overall numbers for Q3 2013 stood at 3.24 million units, a growth of 8.4 per cent in comparison to the same period last year. A surge in commercial volumes owing to fulfillment large education projects has led to overall growth this year.

“Special education projects in states like UP & Tamil Nadu and a much delayed spending in the year from the BFSI segment have largely skewed the overall growth in Q3 towards commercial segment,” Kiran Kumar, Research Manager at IDC said in a note.

On the other hand, demand for consumer PCs remain suppressed against Forecast expectations. Manish Yadav, Market Analyst, IDC said while July and August were noted to be upbeat as lower tier channels stocked up owing to exchange rate pressures, excess stock mixed with poor end user demand weakened channel buying in September. Despite constrained spending, back-to-school season and festive demand starting Onam did drive pockets of investment amongst consumers, particularly around Portable PCs.

Vendor share: India PC market, Q3 2013 (% of shipments)

Among vendors, HP sustained its lead with 32.3 per cent share. “Vendors continued to receive a boost in shipments as part of a large education project in UP. Also, their ability to maintain better pricing against competition tied with aggressive marketing campaigns on both desktops and portable PCs, helped them scale up their dominance in the India PC market”, added Kiran.

Lenovo secured second place with a share of 13.6% in Q3 2013 as their consumer PC business grew 44.5 per cent over the last quarter.

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