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India’s PC shipments drop below 5 million for the first time in four quarters: report

NEW DELHI : India PC shipments grew 12% in the June quarter, even though the number of units shipped during the quarter fell below the 5 million mark for the first time in four quarters, shows market researcher Canalys’ latest report, published Monday. A total of 4.6 million PCs including laptops, desktops, and tablets were shipped during the quarter. 

With 2.6 million units, laptops accounted for less than half of the PC shipments, however, it grew at just 2% year-on-year (YoY) as demand in the consumer segment weakened due to the reopening of schools. Tablet shipments also grew at a modest 9% YoY to reach 1.1 million units. In comparison, desktop shipments soared at an unprecedented 70% YoY clocking 900,000 units during the quarter, according to the report. 

The sharp dip in the consumer market ended seven consecutive quarters of record expansion, noted Ashweej Aithal, the analyst at Canalys. 

Aithal said that laptops accounted for 61% of the market in the June quarter of last year. However, it slumped to 48% this year. “Reduced demand for tablets and notebooks contributed to the consumer market decline, with shipments of the two categories down 23% and 11% respectively,” he added. 

Meanwhile, the commercial segment grew 50% YoY and now accounts for 52% of the overall PC market. Aithal attributes this to the expansion of local manufacturing by PC vendors to become eligible for government contracts for PCs.

For instance, HP expanded local notebook manufacturing, which has helped it acquire orders from the public sector. Similarly, Acer has partnered with contract manufacturer Dixon Technologies and Lenovo is strengthening local supply for tablets and notebooks with its third production lineup, pointed out Aithal. 

In terms of market share, HP was the leading PC vendor with 25% of the market on the back of 1.1 million unit shipments. Analysts attributed HP’s continued dominance to its “aggressive retail outlet expansion” across the country. 

 Lenovo with 21.1% market share and 973,000 unit shipments was the second leading vendor yet again. Dell, Acer, and Samsung were the other three leading brands in the top five with 11.5%, 11.3%, and 5.8% of market share, respectively.

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