India PC Market Declined By 6.5% In Q4 Of 2011 [STUDY]

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It’s well known that India has emerged as one of the most promising market for the sale of desk-based and mobile PCs. Despite, Indian PC market was unable to maintain its dream run as the growth of PC market declined by 6.5 percent in Q4 of 2011 compare to Q4 of 2010.

However, in earlier quarter – Q3 of 2011 – its growth rate surged up by 13 percent compare to same duration in 2010. Meanwhile, the sales figure of Q4 2011 didn’t show any improvement than Q3 2011 as in both quarters combined sale of desk-based and mobile PC was near about 2.5 million.

The major reason behind such down fall in the sales of desk-based and mobile PCs in Q4 of 2011  is  the shortage of hard-disk-drive (HDD) in the market which occurred due to the flood in Thailand.

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On the whole, the flood significantly impacted the sales of PCs globally – 18 percent declined year-over-year in Q4 of 2011 – as small vendors were unable to get the delivery of HDD. However, big companies were less affected as they maintained bench storage strength of HDD.

“The hard-disk drive (HDD) shortage due to the floods in Thailand significantly impacted the desktop market which declined 18 percent year-on-year in the fourth quarter of 2011”. “White boxes (including parallel import), which accounted for 45 percent of the overall desktop market, registered a 32 percent decline in the quarter compared to Q4 2010. Mobile PCs, with a 12 percent increase from the fourth quarter of 2010, were able to stop a further decline of the PC market”, as said by Vishal Tripathi.

Interestingly, in Q4 of 2011 the growth rate of Dell and Lenovo increased by 11 percent and 28 percent respectively, while HP faced the decline of 26 percent compare to Q4 of 2010. The major reason behind decline in the growth rate of HP was the statement made by HP ex-CEO.

The market share for multi national brands increased to 58.6 percent in Q4 of 2011 compare to 56.1 percent in Q4 of 2010.

Compare to Q3 of 2011 the market share for all the companies has appreciated in Q4 of 2011 – except HP and HCL. HP’s market share declined by 0.9 percent quarter-over-quarter, while HCL registered a negligible drop of 0.1 percent quarter-over-quarter. Even, HCL market share slumped down by 34 percent compared to Q4 of 2010. This directly points out that Indians prefer multinational brands over domestic brands,especially in Electronics.

The down-fall in PC market was mainly driven by the Thailand flood which is the biggest producer of Hard Disk Drives (HDD). It might be possible that in next few quarters we might see the compensation of such loss as industry is bound to grow and flourish.

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