India PC Market Grew By 13 Percent In Q3 Of 2011: How Long Desktops Will Sustain [Study]

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India has emerged as the most promising market for the sale of desk-based and mobile PCs. The combined sales of desk-based and mobile PC in India has reached near about 2.5 million units in  third-quarter of 2011, an overall jump of 13 percent as compared to same duration in 2010. In last few decades India has emerged as the center of attraction for several industries. Currently, India is one of the strongest software development country in the world and has covered several milestone in past only to surpassed many countries in various arms of IT industry. Recently, it has touched the landmark of 112 million internet users and is on third spot in terms of internet users all across the world.

“This growth was primarily driven by the mobile PC market which grew 29 percent year-on-year in the third quarter of 2011.” A number of festivals helped drive demand in the consumer market in India. The third quarter was the best quarter in the history of the Indian PC industry as overall PC shipments crossed 3 million units for the first time. The consumer segment accounted for 55 percent of PC shipments. However, we need to be cautious and should not expect the same success to be replicated in the fourth quarter. After the post-festive season there will be sluggishness in the market,” as said by Vishal Tripathi, principal research analyst at Gartner.

This quarter has resulted as most responsive duration for all multinational PC vendors. They all have experienced a double-digit growth in PC shipments in India. Overall multinational brands hold 51.1 percent of the PC shipment in Q3 of 2011, with Dell on top holding 15 percent, followed by HP (13.3 percent), Lenovo (12.1 percent) and Acer (10.8 percent). However, Local vendor HCL has managed to capture only 5.6 percent of the PC shipments in third quarter being the only vendor to register a year – over – year decline. The above data directly highlights that maximum Indian consumers are swearing of multinational brands as compare to local ones. And, this is the main reason behind many new international entrants who have recently opened their shops in India to test the water and are planning to start their production by coming years.

Rise in shipment has directly influenced the growth of the internet users, which is expected to touch 121 million by the year-end. Data also enlightens an important fact that Indians are getting more fascinated towards electronic gadgets and accessories and in coming years we will definitely see growth in desk-based and PC mobile segments.

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Vendors

 3Q11 Market Share (%)

Dell

15.0

HP

13.3

Lenovo

12.1

Acer

10.8

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HCL

5.6

Others

43.2

Total

100.0

However, with the spiked sale for Tablets and constant lowering price of laptops has triggered the discussion on the future existence of desktops. Mostly all latest laptops have been configured for the optimum performance and are challenging the desktop PCs.

With so many offers on plate, it would be interesting to see the users preferences and loyalty. What is your take on this ? Do you think that days for desktops PCs are numbered ?

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