India’s traditional PC market, comprising desktops, notebooks, and workstations, witnessed a remarkable resurgence in the third quarter ending September 30, 2023. After five consecutive years of declining shipments, PC vendors shipped 4.5 million units in Q3 2023, with an impressive 14% YoY growth, according to the International Data Corporation (IDC). The quarterly growth in PC shipments in India is even more impressive, clocking at 41.7% during Q3. This double-digit growth can be attributed to the country’s rising demand for electronic devices, driven by Festive Season Sale by e-commerce giants like Amazon and Flipkart.
The notebook category in the PC market grew a solid 13.1% YoY in terms of shipments during Q3 2023, closely followed by the desktop category, boasting a commendable 19.3% YoY increase.
The IDC report also reveals the surge in the demand for laptops and desktops among consumers in India during the September quarter of 2023. The country recorded a noteworthy 26.3% YoY growth in PC shipments within the consumer sector, while the commercial segment maintained its stability.
“The consumer segment saw strong traction in 3Q23 after a challenging past four quarters. In August, the Government of India declared a mandatory requirement of import licenses for PCs from October 30th. Though this decision was later put on hold, vendors shipped significant channel inventory to avoid any risks of supply shortages or price hikes, not to mention ensuring sufficient supplies for festival season sales,” said Bharath Shenoy, Senior Research Analyst, IDC India.
PC Shipments In India Q3 2023 by Vendors
- HP Inc. dominated India’s traditional PC market with a 29.4% share in Q3 2023. The vendor also led the commercial and consumer segments with shares of 34.3% and 25.9%, respectively. A total of 1.3 million units were shipped by HP during the September quarter, with 33.7% QoQ and 40.4% YoY growth. The stellar performance in the commercial segment, with a 33.5% YoY growth in Q3 2023, was fueled by strong traction in the education and government sectors. The positive market sentiment and effective inventory management strategies contributed to HP Inc.’s largest-ever consumer quarter.
- Lenovo secured a second-place position in India’s traditional PC market with a 17% share in Q3 2023, down from a 21.3% share in Q3 2022. The vendor shipped 764 thousand units of PCs and laptops during the quarter, with an 8.8% YoY decline. However, on a quarterly basis, Lenovo recorded an impressive 49.2% growth in the September quarter’s PC shipments in India. Although Lenovo narrowly outpaced Dell to claim the second spot in the commercial segment with a 21% share, it trailed behind Asus in the consumer segment. Notwithstanding this, Lenovo performed admirably in the desktop category, witnessing a 32.5% YoY growth in Q3 2023.
- Dell Technologies maintained its standing as India’s third largest PC vendor, with a share of 14.6% in Q3 2023, down from 16% share a year ago period. The vendor recorded a 3.8% YoY and 34.9% QoQ growth in shipments, totalling 654 thousand units during the third quarter of 2023. In the commercial segment, Dell closely trailed Lenovo with a 20.8% share, while in the consumer segment, it witnessed a strong 68.5% YoY growth, placing it in the fourth position behind Lenovo. Dell’s strategic decision to refrain from heavy stocking may have resulted in a marginal loss of market share, but it contributed to maintaining a healthy channel inventory.
- ASUS surpassed Acer to claim the fourth position in India’s PC market, securing a 12.5% market share in Q3 2023. The vendor recorded an astonishing 44% YoY and 145.6% QoQ growth in its PC shipments in India during the September quarter. Notably, ASUS achieved its biggest consumer quarter ever, shipping more than 500 thousand units in the consumer segment for the first time. ASUS opted for heavy stocking to prepare for festive season sales and circumvent potential supply challenges due to import regulations. This strategic move paid off, as the vendor witnessed a robust 42.9% YoY growth in PC shipments within the consumer segment, while its commercial segment grew by 69.9% YoY during Q3 2023.
- Acer Group slid to fifth position with a share of 11.6% despite strong growths of 20.7% YoY and 44.4% QoQ in India’s PC shipments during Q3 2023. The vendor witnessed a 6.7% YoY decline in shipments within the commercial segment, while its consumer segment grew a praiseworthy 75.7% YoY during the September quarter. Acer’s strategy to focus more on online channels and efforts to push stocks resulted in its biggest consumer quarter ever.
Navkendar Singh, Associate Vice President, Devices Research, IDC India, South Asia & ANZ, provides a comprehensive overview of the current state and future outlook of the PC market in India. Singh notes that in the past few months, there has been a significant push in the channel towards the consumer segment and, to a certain extent, the SME (Small and Medium-sized Enterprises) segment.
PC vendors are strategically working to increase their local assembly mix, anticipating a preference for devices assembled locally, especially in government and education projects. Singh points out that while this approach will likely benefit the government and education segments, there is a concern regarding the enterprise sector. Due to the shortage of enterprise orders, the enterprise segment is expected to decline by over 20% year-on-year in 2023.
