India PC sales grow 5.8% in September quarter: Report

New Delhi: Personal computer (PC) sales in India grew 5.8% in the September quarter compared with the June quarter, with shipments reaching 2.67 million units, said a report by research firm International Data Corporation (IDC) on Friday.

The growth was due to a short-term recovery in the country’s economy and improved business sentiment after the Narendra Modi-led government took charge in May, the report said.

“Business confidence post elections have shot up considerably and a slew of policy measures announced by the Government has further provided an impetus to the overall growth in Q3 (third quarter of calendar 2014),” the report said.

However, PC shipments in the September quarter were down 16.9% from a year ago.

Quarter-on-quarter, commercial PC sales saw a 4.7% decline to 1.29 million units, while the overall consumer PC sales grew 18.1% to 1.37 million units.

“Uptake of affordable PC segment (sub $400 portable PCs) along with seasonal demand owing to festive season resulted in a sharp improvement in Q3,” said Manish Yadav, market analyst, Client Devices, IDC India.

Hewlett-Packard Co. (HP) retained its top spot with a market share of 25.5% in the India PC market. Dell Inc., which had grabbed the top position in the Jan-March quarter of 2014, and Lenovo Group Ltd took the second and third spot with a market share of 22% and 16.5%, respectively.

IDC, however, anticipates a drop in demand for consumer PCs in the fourth quarter of calendar 2014.

“Q4 is usually hit by a post festive syndrome and 2014 would be no different. Also, protests by the channel community across various parts of India against predatory pricing by e-tailers is adding to the woes in the PC market. We expect the sequential fallout in the consumer business to be in the range of 15-20%,” said Kiran Kumar, research manager, Client Devices, IDC India.

The commercial PC business, on the other hand, is expected to maintain its momentum over the next few quarters, driven by a healthy demand in government and public education segments, the report noted.

Disclaimer: This information has been collected through secondary research and IBEF is not responsible for any errors in the same.