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With demand plummeting, the PC market in India fell 25.2% year-on-year to 2.03 million units in Q1 2014, according to the International Data Corporation (IDC).
While the commercial PC segment recorded a marginal increase of 4.1% over the previous quarter with total shipments of 1.02 million units, the consumer PC shipments stood at 1.01 million units, a drop of -4.3%.
Kiran Kumar, Research Manager of Client Devices, IDC India, said the overall commercial PC market showed first signs of improvement over the last 9-10 months as investment activities have improved in the banking and government verticals. “Vendors are optimistic about the overall market sentiments and believe it will pick up gradually among other verticals too in the course of 2014,” he said. But “consumer’s sentiments plummeted further due to high inflation and soaring prices owing to rupee fluctuations”, he added.
Dell has emerged as the market leader in the first quarter with a 23.1% market share. Manish Yadav, Market Analyst of Client Devices attributed this to the “renewed approach in their go-to-market strategy, product refresh on their commercial portfolio, and deeper penetration in the upcountry markets”.
Last year’s market leader HP, took the second place with 20.4%, but is still ahead in the consumer PC market. Lenovo was third with a 14.9% market share, and is powered by strong positioning in private banking, IT/ITeS and telco accounts.
IDC India expects the overall sentiments to get a boost from a stable administration at the Centre. “Though recovery is unlikely to happen immediately, the challenging economic conditions are expected to revive, bringing back consumer confidence,” said Yadav.