The Indian PC market has clocked a growth of over 20% on the back of strong consumer demand and execution of special projects in the public as well as private sector. Companies like HP and Dell lead the growth in Q3 2018, with IDC noting that HP continued to lead the Indian PC market with a market share of 30.7%.
According to the IDC report, the consumer segment of the Indian PC market saw a growth of 33.9% over the previous quarter. This growth was majorly driven by e-commerce players who focused on offering a wider portfolio of products. Additionally, offers like No-cost EMIs and easier financing across all major vendors led to improved affordability, thereby helping in increasing the overall sales. However, on a year-on-year basis, the Indian PC market saw a decline of 10.6%, primarily due to increased sales in Q3 2017 due to the implementation of GST.
Nishant Bansal, Research Manager, IPDS & PC at IDC India, said,
“Increase in discretionary spending aided by consumer financing schemes provided a strong momentum to premium device like Gaming Notebooks. Festive season buying and online sales also resulted in increased consumer spending.”
Flipkart, one of the two big Indian e-commerce players, recently launched Flipkart Pay Later service that extends credit facilities to its customers at zero interest rate. Amazon too launched its own EMI scheme that makes it easier to afford new purchases. Additionally, several new players have also started offering “Buy now, Pay later” services, thereby making it easier for customers to make new purchases.
While the PC market witnessed strong consumer demand, the public sector and commercial segment also registered a healthy growth of 7.5% in the quarter. While the public sector demand was due to the execution of education projects in Assam, Orissa and Rajasthan, the demand from small and medium businesses (SMB) and Enterprises also helped in the growth of the market.
HP continued to be the market leader with a share of 30.7% as of Q3 2018. The company saw a growth of 25.1% quarter on quarter in the consumer segment and a growth of 9.5% in the commercial segment.
Dell retained the second spot with a market share of 22.9%. The consumer segment saw a growth of 29.1% while the consumer segment saw a growth of 6.8%.
Lenovo made big gains in Q3 2018 with a growth of 63.7% in the consumer segment and 22% in the commercial segment. The company retained its third position with a market share of 21.3%. IDC credits the massive growth in Lenovo’s consumer segment share to an aggressive expansion of the online channel and a continued growth in the modern retail sector.
Despite the Indian market registering a healthy growth in Q3, 2018, things may not be as rosy in the next few months. Navkendar Singh, Associate Research Director, Client Devices & IPDS, IDC India, said, "While the excitement at the premium end of the market will remain and expected to grow further, IDC expects overall India PC market to decline due to Intel chip shortages and also on account of post Diwali slowdown of the market. OEMs are also expected to revamp their portfolio with new product launches in mid to premium segment in the next few months."