Tuesday, February 19

HP Big Winner in 2013 Indian PC Market: IDC

The PC maker cornered 28.5 percent of the market fueled by its strengths in terms of price competitiveness and partner coverage.

HP carved out a 28.5 percent share in the Indian PC market in 2013, according to research firm IDC, with the firm stating that the US PC maker’s strengths were in the areas of price competitiveness and their well spread country wide partner coverage.

HP was also helped by their execution of the largest education deal with the state government of UP, ensuring them high volumes and driving their market share to a peak. IDC also noted that such buying across different state governments, as part of their distribution of free laptops to students, helped the overall Indian PC market improve marginally.

Source: IDC’s Asia Pacific Quarterly PC Tracker, Feb 2014

Dell took the second spot with a market share of 13.2 percent with a year-on-year growth of 5.7 percent in absolute volumes. IDC noted that Dell has been aggressive and re-investing its efforts and focus on the end-user computing business post their privatisation announcement. It was also pointed out that the vendor benefited from high brand recall that it has retained amongst the Indian consumers. .

Lenovo put in a strong showing in the Enterprise business and in the All-in One Desktop category, according to IDC. They moved to the third spot with a market share of 12.2 percent in CY 2013, with IDC also noting that Lenovo continued to remain focused in the consumer segment through partner programs, expanding coverage and price aggression. With the new line of business towards tablets and phones, IDC anticipates Lenovo leverage their reach and grabbing more consumer mind share in the days to come.

Commenting on the overall PC market, the report noted that PC shipments for CY 2013 stood at 11.5 million units i.e. a year-on-year growth of 4.8 percent over CY 2012. While the commercial PC segment hit a high of 6.7 million units in CY 2013, recording a year-on-year growth of 15.8 percent over CY 2012, the overall consumer PC market recorded 4.8 million units, a year-on-year drop of 7.4 percent over CY 2012.

India PC shipment for Q4 2013 stood at 2.03 million, a quarter-on-quarter drop of 37 percent over Q3 2013 and year-on-year drop of 19 percent over Q4 2012. Q4 witnessed a consolidation phase in the India PC market with announcement of players exiting the market or de-focusing their PC line of business. Further, lack of large scale buying for special projects and dampness in consumer demand post diwali led to a drastic slump in Q4.

Source: IDC’s Asia Pacific Quarterly PC Tracker, Feb 2014

“The scenario on the consumer PC segment was no different”, said Kiran Kumar, Research Manager, IDC, adding that “the soaring consumer inflation tightened up the discretionary spending for consumers. Further shift in share of wallet towards smartphones and tablets have led the demand trends to be adverse.”

However, as far as the PC segment is concerned, outside special projects, the demand conditions have worsened in the course of the year and sentiments remain largely subdued owing to multiple factors including the sharp devaluation of rupee, weak economic growth, slowdown in new hiring mixed with layoff fears in large enterprises.

“There was a lot of uncertainty amongst investors and businesses. Buying decisions were noted to be typically stretched over 2-3 quarters,” said Manish Yadav, Market Analyst, IDC.

IDC anticipates the overall PC market to decline in CY 2014, and with no big announcements around education projects, the decline could be steep, primarily in the commercial PC segment. Also, with general elections around the corner, the focus is expected to be on populist measure and hence the buying decisions in state owned organizations and e-governance projects is expected to be much delayed.

“The refresh buying on Windows XP might drive volumes amongst Enterprises but we expect the same to be negated by lack of buying from the Government vertical,” said Yadav.

On the consumer segment, IDC anticipates the shift of mobile platform to continue and the choice of consumers to continue to drift towards phone and tablets.

“Desktops would exist for specific abilities and continue to be seen as a primary choice for productivity functionalist,” said Kumar.

Source: IDC