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India's PC shipments for Q3 see 22.5% YoY drop

Demonetisation, seasonality to impact consumer market going ahead

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Shivani Shinde Nadhe Pune
Shipment of personal computers in Q3 2016 rose sequentially but fell from the year-ago period, said International Data Corporation (IDC).

The shipment stood at 2.51 million units, falling 22.5 per cent over the year-ago period. The number posted a quarter-on-quarter growth of 17.3 per cent over Q2 2016, said the data.

The consumer PC market recorded 1.37 million units, sequential growth of 31 per cent over Q2 2016 numbers. 

Manish Yadav, associate research manager-client devices, IDC India, said: “Increased consumer confidence, backed by strong festive demand, decent monsoon and positive economic outlook eventually drove the pockets of investment in the quarter.”
 

The analyst and research firm said the PC market was expected to see sluggishness in the coming quarters, some of this due to demonetisation. 

“IDC anticipates seasonality to impact the consumer market and currency demonetisation adding to the worse, as early indicator illustrates an immediate impact on retail purchase and a drop observed in the online channel business. However, commercial spending is anticipated to drive PC market momentum owing to the execution of state-owned education projects observed across states,” said Yadav. 

The commercial PC segment recorded shipment of 1.13 million units in Q3 2016 — 4.1 per cent quarter-on-quarter increase against Q2 2016. “A favourable domestic macroeconomic scenario from enterprises has been positive and we anticipate improved spending in the upcoming quarter as well,” said Yadav.

In terms of vendors, HP took the top spot with a market share of 28.8 per cent in the India PC market. The vendor grew 18.9 per cent quarter on quarter over Q2 2016 owing to partial execution of state-owned education project and with increasing large format retailer and online presence during festive and the back-to-college seasons. The vendor recorded 20.0 per cent growth in overall the consumer market in Q3 2016.

Dell captured the second spot with a market share of 24.1 per cent. The vendor grew 27.6 per cent quarter on quarter over Q2 2016. Improved channel engagement and new opportunities on AMD platform drove additional business for the vendor in Q3 2016. Owing to a strong back-to-college season, bundled with offers, the vendor was able to partially liquidate its channel inventory and show growth in Q3 2016, said IDC.

Lenovo took the third spot with 17.5 per cent market share in the quarter. The vendor grew 27.3 per cent quarter on quarter over Q2 2016. A change in management and improving partner engagement assisted the vendor in refining its consumer Q3 2016 sales. A new partner programme and improved sales techniques helped it post growth of 10.1 per cent quarter on quarter.

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First Published: Nov 23 2016 | 3:44 AM IST

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