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India’s PC market declined by 30.1% YoY in 1Q23 as demand continued to drop: IDC report

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The India traditional PC market, inclusive of desktops, notebooks, and workstations, continued to drop shipping only 2.99 million units, a decline of 30.1% year-over-year (YoY) in 1Q23 (Jan-Mar), according to new data from the International Data Corporation (IDC) Worldwide Quarterly Personal Computing Device Tracker. In 1Q23, while the demand for desktops was positive, the notebook category witnessed another weak quarter as it declined by 40.8% YoY. The consumer segment declined by 36.1% YoY primarily due to slowing demand and low market sentiment, and the commercial segment declined by 25.1% YoY due to reduced/delayed procurement by enterprises and SMEs.

Government and education were the only segments seeing positive traction in 1Q23. Procurement from government bodies propelled the segment to grow by 25.2% YoY, while fulfillment of the Gujrat education order helped the education segment grow by 65.6% YoY. Premium notebooks (>US$1,000) declined by 65.8% YoY in the commercial segment and 59% YoY in the consumer segment. Significant inventory correction of Apple MacBooks and low demand from enterprises led to a slump in the shipment of premium notebooks. The online channel struggled for the second consecutive quarter, declining by 42.4% YoY in 1Q23.

“Channel partners across tiers for almost all vendors have been carrying heavy inventory for the last two quarters. Hence, shipments in the consumer segment decreased significantly in 1Q23 as they focused on clearing off aging inventory. The consumer market is expected to gradually recover from June-July with the back-to-college demand and followed by aggressive online sales expected during the festive months in Q3/Q4,” said Bharath Shenoy, Senior Market Analyst, IDC India.

Top 5 Company Highlights: Q123

HP Inc. led the market with a share of 33.8% in 1Q23 with a strong showing in both the consumer and commercial segments. While some government and education orders helped its commercial segment clock a share of 34.7%, strong demand in offline channels helped its consumer segment, as it held a share of 32.6% there. Despite good shipments, the vendor declined by 30.2% YoY as demand for PCs dropped across segments.

Lenovo was second with a share of 15.7% despite witnessing a decline of 37.5% YoY. While it was second in the consumer segment with a share of 14.2%, it was marginally behind Dell in the commercial segment as it held third place with a share of 16.8%. The vendor struggled in the government segment even though this quarter was driven by government orders.

Dell came third with a share of 13.9%. The vendor focused on correcting channel inventory in consumer and SME segments, leading to a big drop in market share. The lack of enterprise orders also impacted the company’s performance as the enterprise segment has traditionally been Dell’s forte.

Acer Group held the fourth position with a share of 12.3%. Despite the negative sentiment in the market, Acer was one of the vendors which fared better. It did extremely well in the government and education segments, which gave it a share of 16.7% in the commercial segment, marginally behind Dell and Lenovo.

ASUS held the fifth position in 1Q23 with a share of 6.6%. The vendor continued to do well in the consumer segment, and it held second position in consumer notebook category, ahead of Lenovo and Dell, with a share of 17.9%.

India PC Market, Top Five Companies, Market Share, Year-over-Year Growth 1Q23 (Shipments are in thousands of units)
Company 1Q23 Shipments 1Q23 Market Share 1Q22 Shipments 1Q22 Market Share Year-over-Year unit change (1Q23 vs 1Q22)
1. HP Inc. 1,012 33.8% 1,449 33.8% -30.2%
2. Lenovo 470 15.7% 752 17.6% -37.5%
3. Dell Technologies 417 13.9% 830 19.4% -49.8%
4. Acer Group 368 12.3% 421 9.8% -12.5%
5. Asus 198 6.6% 267 6.2% -25.9%
Others 528 17.6% 563 13.1% -6.2%
Total 2,992 100.0% 4,282 100.0% -30.1%
Source: IDC Worldwide Quarterly Personal Computing Device Tracker, May 2023

Commenting on the outlook, Navkendar Singh, Associate Vice President, Devices Research, IDC India, South Asia & ANZ said, “PC demand has been sluggish over the last couple of quarters. While SMEs are delaying procurement due to the credit crunch, enterprises are reducing or delaying procurement out of recession fears. The PC market in India is expected to stay sluggish for a few more months and start recovering from late 4Q23 onwards.”

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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