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June 6, 2023


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PC shipments fall in Jan-Mar as firms drag feet on orders

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NEW DELHI : Reduced and delayed procurement of laptops, desktops and workstations by companies, including small and medium enterprises, have led to a 25% decline in shipments of business and commercial PCs in the first quarter of 2023 compared to a year earlier, the International Data Corporation (IDC) said in a report on Tuesday. Overall PC shipments in India, including in the consumer segment, declined 30% to 2.99 million units during the period.

Commercial PCs comprised 58.3% of the overall PC market in India during Q1 2023, up from 54.4% a year earlier, according to the report.

Analysts at IDC pointed out that PC demand has been sluggish over the last couple of quarters. Shipments of premium notebooks (above $1,000) fell by 65.8% in the commercial segment due to subdued demand from enterprises and inventory correction of Apple MacBooks.

“While SMEs are delaying procurement due to the credit crunch, enterprises are reducing or delaying procurement out of recession fears. The PC market in India is expected to stay sluggish for a few more months and start recovering from late Q4 23 onwards,” said Navkendar Singh, associate vice president, devices research at IDC India, South Asia & ANZ.

In the commercial segment, government and education were the only ones that saw positive traction during the quarter. PC shipment in the government segment grew by 25.2% due to higher procurement from government bodies. In the education segment, shipments surged 65.6% due to the fulfilment of a large order in Gujarat.

Some of the key government orders were from Tamil Nadu Police, CAG, Tamil Nadu government and Kerala government, said Singh. Also, the traction has been strong on government e-marketplace (GEM) with HP and Acer delivering over 20,000 devices each in Q1 23, he added.

US PC maker HP led the Indian PC market during the quarter with a 33.8% share of total shipments. Orders from government and educational institutions also helped HP capture 34.7% of the commercial PC market.

Though Lenovo was the second leading brand in the overall PC segment with 15.7% share of the market, it struggled in the government segment. Dell, which has traditionally been strong in the enterprise segment, also saw a sharp drop in shipments due to lack of enterprise orders. Taiwanese brand Acer performed “extremely well” in the government and education segments, according to IDC.

Commercial segment was a key driver for growth in the PC segment in 2021 due to covid-19 induced shift to remote work and learning. To be sure, the commercial segment posted a sharp 81.4% y-o-y growth in India in Q4 2021, according to a February 2022 report by IDC.

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