The overall India PC shipments for the second quarter of 2013 stood at 3.53 million units, representing a substantial on-year growth of 24% over the second quarter of 2012 and an on-quarter surge of about 30.2 % over the first quarter of 2013.
According to Kiran Kumar, research manager, "State-led manifesto driven spending on notebooks steered commercial investments in the India PC market in the second quarter of 2013. Special projects currently being executed in states like UP, Rajasthan, and Tamil Nadu accounted for roughly one third of the total PC market size in the second quarter. However, the organic demand for PCs in India outside special projects has weakened, which remains a cause of concern for PC vendors. Further, the rupee slide derailed enterprise spending, as the investment decisions remained seemingly delayed across most of the verticals."
On the other hand, the consumer market in the second quarter witnessed a marginal growth over the first quarter of 2013. According to Manish Yadav, market analyst, "The second quarter had a sluggish start in April owing to inventory concerns coupled with shift in share of wallet towards commodities like gold and other consumer devices that were riding high on trade-back schemes and other time-to-time discount offers. Further, the announcement of new tax policies, such as the Local Body Tax in Mumbai and suburban areas, halted shipment growth in May. But June largely reversed this stillness aided by back-to-school campaigns and loading of stocks across partners in preparation to the impending price hike on account of rupee volatility."
In terms of vendor share, Hewlett-Packard (HP) recorded its highest ever quarterly market share with an exceptional 34.1% share in the second quarter of 2013. Delivering an outstanding performance, HP stayed dominant across all segments in commercial and consumer PC business in India. "Though the enterprise PC business was primarily driven by the single largest notebook deal in the state of Uttar Pradesh, the vendor also led the consumer PC business in India with their well established channel network and incentive programs tied with their effective pricing strategies," added Kiran.
Dell took the second position with a share of 11% in the second quarter of 2013. "Their presence at the entry-level price-band has given them much room to drive their volumes. Also, the vendor's continued efforts in increasing retail visibility and their effective channel positioning, was ably supported by their marketing campaigns," added Manish.
Acer took third with a market share of 10.4%. Acer continues to thrive in government and education projects spread across the country. The vendor executed large deals in the states of Tamil Nadu and Rajasthan, which fueled their growth in the commercial PC market in the second quarter.
The third quarter has historically witnessed strong consumer buying in lieu of the forthcoming festive season in various parts of the country. This is also well aided by the back-to-school/college season and related campaigns undertaken by vendors and partners across different regions. IDC expects 2013 to be no different. Kiran said, "July remained upbeat and we are noticing the growth is continuing into August too. Consumer sentiments have peaked at the right time as they begin to reconcile with the market reality on inflation and related pressures. Retail walk-ins have improved and share of consumer wallet looks to move back to PCs, which is an encouraging sign for the consumer PC vendors."
However, Manish added a cautionary note: "The PC business continues to thrive on wafer thin margins and it is still early to comment on the success of new form factors, which were anticipated to drive the overall value of this business. Also, outside special projects, demand from enterprises and government remain largely suppressed painting a gloomy scenario on commercial PC business, in the near future."