The overall market declined initially owing to reduced consumer demand and high inventory in H1 2016. However, PC sales recovered starting June owing to strong consumer sentiment backed by seasonality and increase festive demand.
According to International Data Corporation (IDC), the overall India PC market for CY 2016 stood at 8.58 million units i.e. a year on year drop of 15.2 percent over CY 2015. However, outside special projects the overall India PC market witnessed a year on year drop of 7.5 percent in CY 2016.
The consumer PC market recorded 4.22 million units in CY 2016, with a year on year decline of 12.9 percent over CY 2015. According to Manish Yadav, Associate Research Manager, Client Devices, IDC India “With high inflation and ongoing fiscal consolidation, consumer sentiment remained frail until H1 2016. However, with subsiding inflation and benefit from the Pay Commission award, continued low commodity prices and measures announced in the Union Budget to transform the rural sector created just the right buzz for PC purchase in CY 2016.”
The overall commercial PC market recorded 4.35 million units in CY 2016, with a year on year drop of 17.4 percent over CY 2015. “Barring fulfilment of limited large education projects, the year witnessed muted investment and delayed spending from government segment in H2 of CY 2016. Enterprises consumption had been the mainstay in holding up the aggregate demand during the same period.” said Yadav
Top 3 Vendor Highlights:
HP Inc.:
HP Inc. recorded a market share of 28.4 percent in the overall India PC market in CY 2016, the vendor took the top spot with 3.0 percentage point growth over CY 2015. The vendor continues to dominate in the consumer PC business with 26.8 percent market share for the third year in a row; HP Inc. has recreated its brand in India PC market with strong product placement and aggressive marketing campaigns supported by new innovative products like Spectre. The vendor also led the commercial category with the execution of special projects and strong hold in enterprise vertical as well.
Dell:
Dell recorded an overall market share of 23.3 percent in overall India PC market in CY 2016 and took the second spot. The vendor continues its investment in expanding channel strength and remained focused on addressing new opportunities in segments like government and education. Owing to which Dell gained around 4.9 percentage point growth year on year to record 24.5 percent market share in CY 2016 in the overall commercial category against CY 2015.
Lenovo:
Lenovo held on to the third spot, with an overall market share of 17.6 percent in CY 2016. The vendor declined by 5.8 percentage point in CY 2016 over CY 2015 in overall India PC market. With changes around GTM strategies and internal structure, the vendor’s consumer business did observe a drop of 2.5 percentage points year on year in CY 2016, further the drop was aided owing to lack of special project execution against CY 2015. However, market believes Lenovo will bounce back in CY 2017 by leveraging its improved marketing strategies and channel strength backed by innovative product line-up.
IDC India Forecast:
On short term, positive consumer spending is leading to healthy sell out and expected to build a strong base for H1 CY 2017; unlike CY 2016 which was badly hit owing to sluggish consumer demand from start of the year. “With increase adoption of digital transaction and affordable PCs; consumer PC market is setting up for a revival in CY 2017.” said Yadav Further the commercial market is anticipated to observe execution of state owned education projects across different states in CY 2017 and the incremental spending from BFSI and government verticals will further strengthen the overall category growth.
