India’s PC Market Declined in Q3 2022 After 8 Consecutive Quarters of Growth IDC

According to new data from the International Data Corporation (IDC) Worldwide Quarterly Personal Computing Device Tracker, the India traditional PC market, which includes desktops, notebooks, and workstations, fell 11.7% year-on-year (YoY) in Q3 2022 (July-Sep) despite strong shipments of 3.9 million units.

To remember, India’s PC market grew 37.7% YoY in Q1 2022 and saw 17.8% growth in Q2 2022. This decline comes after eight consecutive quarters of growth. All segments dropped except government, which expanded by 91.5% year over year as orders materialized, resulting in substantial growth for the third quarter.

The desktop and workstation segments climbed by 23.4% and 17.6% YoY, respectively. Demand for notebooks has declined, pushing vendors to empty their inventories.

End-September online sales helped the consumer category ship 2.1 million devices. Even so, YoY sales fell 10.9%. The commercial segment declined 12.5% YoY due to delayed corporate orders and dampened SME sentiment. While commercial demand for premium notebooks (>$1,000) fell 28.5% YoY, consumer demand climbed 9.8%. Apple’s performance and ASUS’ gaming notebooks drove growth.

India PC Market, Market Share, Year-over-Year Growth Q3 2022

  • HP shipped over 940,000 units in 3Q22, leading the PC market with 23.9%.
  • Lenovo overtook Dell for second place with a good showing in the consumer market thanks to online sales. In a quarter of decline, Lenovo dominated SME procurement with 32%.
  • Dell Technologies fell to third because it stopped selling online to consumers.
  • Acer Group was fourth with 10.9%. Acer’s commercial business climbed 28.2% YoY. It led the commercial desktop market with a 31.3% share, thanks to sales to businesses and the government, as well as a lot of interest in the Government eMarketplace (GeM).
  • ASUS was fifth with 9.9%, up from 8.5% in 3Q21. In consumer notebooks, it ranked second behind HP and ahead of Lenovo, with a 20.6% market share.

Commenting on the outlook, Navkendar Singh, Associate Vice President, Devices Research, IDC India, South Asia & ANZ, said:

We expect a slowdown in PC procurement from the IT/ITES sector, which is typically one of the biggest buyers. Similarly, we are witnessing some sluggishness in SME procurement as they are challenged by inflation and a credit crunch. But the government and education segments are seeing some orders which can drive small volumes in the commercial segments in the next two quarters. In the consumer segment, early Diwali helped gain momentum in September, but the next two quarters are expected to be slow. Supply disruptions are no longer an immediate concern, but softening of demand across segments is a major worry.

Commenting on the data, Bharath Shenoy, Senior Market Analyst, IDC India, said:

With schools and colleges opening, the consumer segment is seeing tapering demand for the past few months as demand for remote learning has come to a standstill. Weakened currency is resulting in rising device costs and pricing pressure for vendors. As the online sales were going on, vendors delayed price increases in Q3, but the discounts weren’t as lucrative as in previous years either. Vendors are expected to increase prices in Q4, which might further dampen sentiment.