India's traditional PC market showed a glimmer of hope with a 5.9 per cent quarter-over-quarter (QoQ) growth in second quarter of 2023, shipping 3.2 million units.
However, this increase was overshadowed by a significant 15.3 per cent year-over-year (YoY) decline, as reported by IDC.
All product categories within the market faced a YoY decline. The notebook category, which traditionally drives volume, experienced an 18.5 per cent YoY decline, while the desktop category, previously on a growth trajectory, also faltered with a 7 per cent YoY drop. Both consumer and commercial segments were impacted, with declines of 17 per cent and 13.8 per cent YoY respectively.
Despite these challenges, certain segments managed to buoy the PC market. Government-driven education initiatives in states such as Madhya Pradesh, Gujarat, and Tamil Nadu drove a notable 43.7 per cent YoY growth in the education sector. Additionally, the government segment saw an 8.2 per cent YoY growth, propelled by the fulfillment of state high court orders. However, the enterprise segment continued to struggle, resulting in a 30.7 per cent YoY decline in premium notebook sales (>USD 1,000), although a promising 39 per cent QoQ growth was observed.
The online channel faced a 15.8 per cent YoY decline but displayed signs of recovery and is anticipated to perform well in the upcoming quarter.
Bharath Shenoy, Senior Market Analyst at IDC India, acknowledged the nascent recovery in the consumer PC segment. Despite a double-digit YoY decline, this segment exhibited strong double-digit QoQ growth. Shenoy attributed this recovery to successful college campaigns by PC vendors and improved performance in e-tail channels.
Market leader HP Inc. held a commanding share of 31.1 per cent in Q2 2023, thriving in both consumer and commercial segments. The company's strong presence in gaming notebooks and brand stores contributed to a 29.5 per cent share in the consumer segment, while government and education demand secured a 32.6 per cent share in the commercial sector. HP Inc. also reported a 9.5 per cent YoY growth in the SME segment.
Lenovo, the second-largest player, faced a 30.2 per cent YoY decline but still retained a 16.2 per cent market share. It occupied the third position in both consumer and commercial segments, with respective shares of 13 per cent and 18.9 per cent. However, Lenovo claimed the second spot in the SME segment with a share of 25.8 per cent.
Dell Technologies secured the third position with a 15.3 per cent market share. Although it led Lenovo in the commercial segment with a 19.1 per cent share, it held a modest 11.0 per cent share in the consumer segment. Dell Technologies focused on profitability and controlled volume shipment, aiming to restore healthy channel inventory levels.
Acer Group, holding a 11.4 per cent market share, experienced notable success in the desktop category, becoming second only to HP with a 21.9 per cent share. It also led the commercial desktop sector with a 29.8 per cent share, driven by increased demand from the government segment. Acer Group's strong presence in the consumer segment contributed to an overall 8.2 per cent YoY growth.
ASUS rounded out the top five vendors with a 7.2 per cent market share. The company's robust offline channel expansion propelled it to the second position in the consumer segment, ahead of Lenovo and behind HP, with a 14.8 per cent share.